WHS - Warehouse Group

[BIRMANBOY]

Tipping is not something I would encourage for the following reasons. (a) tends to reward something that should be normal behaviour (b) will give employers a reason to keep wages lower. (c) does nothing to stimulate economy because tips are mostly "black economy" and dont get reported..Govt loses out on taxes etc. (d) once its entrenched you're stuck with it and no way back. I lived in the US for 20 odd years and as we all know tipping is part and parcel of life there. The only good thing about tipping is if you own or operate a service business your costs are obviously going to be lower in the wages dept. This doesnt help the employee of course and if you have a "bad day" and get SFA in tips then we have grumpy employees. As an employee better to know what you are getting rather than feast or famine. I had a part time job driving a limo in NY and sometimes would get tipped $100 for a job or the next job could be $11 an hour and a $10 tip...not worth the effort.

Then how about skipping the middle man and tip. I have used it to great effect to ensure good service during the night. They will always serve you first if they know they will keep any change. (only downside is it requires you to carry cash).

[BIRMANBOY]

Yes totally agree...training staff endlessly is a waste of valuable time...would be smarter, retain value and free up managerial expertise to pay a bit more and reduce turnover. Another "war story"...(boringggg ) As a manager of business with 30 employees I spent 90% of my day training, firing and hiring because the owners refused to pay a decent wage. Poorly trained, short term employees LOSE sales and waste selling opportunities.

having a trained workforce that stays with a company long term is smart if you have ever worked in retail you will know what a pain in the behind it is to have to hire, train and hope that they will turn out to be a good employee.
heres a article on similar strategies used http://www.theatlantic.com/business/...retail/274322/

I forgot to add their is a clear divide starting to take shape in NZ retail now in regards to wages ,on one side is the retail who will pay good like whs , rbd , etc and on the other side is places like food stuffs , mc donalds etc one can clearly see the talk going around schools about who the good ones are to work for and the shift in culture that could take place if ya get the drift.

[CJ]

Whats that??? around here we just call them d*ckheads, and demand another beer .

Aaron - is that you???

Tipping is not something I would encourage for the following reasons.

I am too cheap to tip 95% of the time. I tip to reward really good service, where they have had to deal with complicate sitaution (eg. Aaron Gilmore), or to pre-empt good service.

As an extreme example of the last, at Oktoberfest in Munich, if you ask for change from your 10 Euro, it is unlikely the beer lady will come back to your table in a long time. THey are constantly busy so it makes sense they look after the tables that look after them.

[bull....]

heres another article along similar lines to the last

http://www.newyorker.com/talk/financ...alk_surowiecki

[BIRMANBOY]

4.25 and $5 looming? Has been an exceptional run for WHS..Obviously being perceived as good value so nice to see.

[Lawt]

We were discussing the "living wage" at the club the other night. Would we be willing to pay an extra 50c for a jug of beer knowing everyone was getting a decent wage. The consensus was yes. I am not saying this will push up prices, but the long and the short of it is people prefer to spend or invest their money ethically.

But that completely misses the point doesn't it?
It's not what you'd be prepared to pay, it's what they'd be prepared to pay.

So they get an extra X in their pay packet - but so does the burger flipper at maccas, the grocer, the trolley boy, the gas station attendant etc etc. Would your barman now be prepared to pay all of these people their "fair" share from your extra 50c? What we would see soon enough is that the living wage was soon inadequate.

Ever noticed that what you thought was a good idea when you were drunk or stoned was not such a good idea when you sober up.
This is one of those times.

[Banksie]

Ever noticed that what you thought was a good idea when you were drunk or stoned was not such a good idea when you sober up.

Nope - drinking my coffee and it still seems like a good idea, not sure that last beer and whisky chaser was though .

[BIRMANBOY]

Economists argue about the wage-price spiral back and forth and you could spend years debating it....thats not the point here. The point is that by paying someone more you create an environment where workers feels "loved" and valued and appreciated as you will no doubt recognise when you yourself got a raise. This makes for a more productive, happier employee which in turn should encourage a better work place environment which should boost sales and profitability. The employer also gets a "feel good" factor which also encourages positive work. So the worst case scenario is, as you suggest, a "no financial advantage" but happier employer/employee/workplace. Sometimes the perception is more effective than the reality. Also as the employee sees themself being valued the possibility arises that they see their future in a more positive fashion and improve their skills and employability thereby moving up the evolutionary employment ladder.

But that completely misses the point doesn't it?
It's not what you'd be prepared to pay, it's what they'd be prepared to pay.

So they get an extra X in their pay packet - but so does the burger flipper at maccas, the grocer, the trolley boy, the gas station attendant etc etc. Would your barman now be prepared to pay all of these people their "fair" share from your extra 50c? What we would see soon enough is that the living wage was soon inadequate.

Ever noticed that what you thought was a good idea when you were drunk or stoned was not such a good idea when you sober up.
This is one of those times.

[000831]

bought some this morning, nice graph with fundamental support

[bull....]

even at todays prices it still provides 7% div , i expect the div will acyually go up once the capital investment programme has finished the company will be a cash cow