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posted by martyb on Tuesday October 27 2015, @10:25PM   Printer-friendly
from the sydney-morning-herald-wrong-again dept.

The Center for American Progress reports

In April, Dan Price, CEO of the credit card payment processor Gravity Payments, announced that he will eventually raise minimum pay for all employees to at least $70,000 a year.

[...]Six months later, the financial results are starting to come in: Price told Inc. Magazine that revenue is now growing at double the rate before the raises began and profits have also doubled since then.

On top of that, while it lost a few customers in the kerfuffle, the company's customer retention rate rose from 91 to 95 percent, and only two employees quit. Two weeks after he made the initial announcement, the company was flooded with 4,500 resumes and new customer inquiries jumped from 30 a month to 2,000 a month.

Previous: Gravity Payments: CEO Takes Cut and Makes $70k/year New Minimum Salary
All Staff Pay Raise Backfires on Credit Card Processing Firm


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  • (Score: 2) by ikanreed on Wednesday October 28 2015, @02:57AM

    by ikanreed (3164) Subscriber Badge on Wednesday October 28 2015, @02:57AM (#255406) Journal

    Well, yeah, actually they do.

    They can't afford to use wide-audience targetting advertisements, but they use the things that actually represent the power larger groups have.

    They start petitions to companies. And companies often notice if there is a group of die hard fans for one of their discontinued product. They tend to reinstate it at a higher price, which satisfies those die hard fans and makes it economically viable.

    Only example I can think of is that kraft or general mills or someone reinstated a popular cake frosting.

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  • (Score: 2) by Tork on Wednesday October 28 2015, @03:33AM

    by Tork (3914) Subscriber Badge on Wednesday October 28 2015, @03:33AM (#255423)
    My favorite example is how Napster users basically begged the world to create iTunes. But, yeah, I'd say both our examples are minuscule to the efforts that companies like Coca Cola put into earning customers.
    --
    🏳️‍🌈 Proud Ally 🏳️‍🌈
  • (Score: 0) by Anonymous Coward on Wednesday October 28 2015, @05:16AM

    by Anonymous Coward on Wednesday October 28 2015, @05:16AM (#255446)

    Only example I can think of is [...] cake frosting

    In Maine, they became unhinged when Nabisco quit making Crown Pilot Crackers. [google.com]
    It's part of a traditional chowder recipe.

    -- gewg_