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Here's What Really Happened at That Company That Set a $70,000 Minimum Wage


Here s What Really Happened at That Company That Set a 70 000 Minimum Wage Inc com

Source: http://www.inc.com/magazine/201511/paul-...

Six months after Price's announcement, Gravity has defied doubters. Revenue is growing at double the previous rate. Profits have also doubled. Gravity did lose a few customers: Some objected to what seemed like a political statement that put pressure on them to raise their own wages; others feared price hikes or service cutbacks. But media reports suggesting that panicked customers were fleeing have proved false. In fact, Gravity's customer retention rate rose from 91 to 95 percent in the second quarter. Only two employees quit -- a nonevent. Jason Haley isn't one of them. He is still an employee, and a better paid one.

In fact, the biggest threat to Price's company isn't his strategy; it's his brother. Lucas's lawsuit, scheduled to be heard in May, could ruin Gravity. Price estimates legal fees will reach $1 million by then. The suit was filed on April 24, 11 days after the pay-raise announcement -- perhaps to pressure Dan to sell when Gravity was in the limelight, thus maximizing the value of Lucas's share. Dan says Lucas has refused his offer to buy him out for $4 to $5 million. (Lucas's attorney says the suit is unrelated to the raises.)

Stashed in: economics, Basic Income

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Still, the company is doing WAY better than I would have thought. 

Previously:

http://pandawhale.com/post/61803/seattle-ceo-of-gravity-payments-to-pay-employees-70000-minimum-wage

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