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chaostheoryyesterday at 11:27 PM3 repliesview on HN

1. There is only so much you can pay the people doing the kind of work like cleaning the Shinkansens or manning the 7-11's because it affects customer costs. i.e. There's a point where you increase the salary of 7-11 workers that it causes a $2 fried chicken snack to inflate to $10 that customers will refuse to buy

2. Even if there was magically enough money and time to retrain people, they would still be short of workers.


Replies

ccotoday at 12:18 AM

Out of curiosity, what percentage of a fried chicken snack's final cost do you think is labor from that 7-11 worker?

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seanmcdirmidyesterday at 11:40 PM

Different from the USA, 7-11 in Japan and China are mainly self checkout at least, so they can technically run a store with less people since they don’t have to man cash registers to get people checked out.

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ggmyesterday at 11:47 PM

This is a linkage in theory but in practice it's an indirect linkage and the 7-11 owner does not have a handbook dictating how prices rise or fall relating to labour costs.

As evidenced by the non arrival of across the board 10% rises in meal costs when tipping is banned.

TL;DR cost and price linkage is not amenable to simplistic claims about the impact on pricing.