Tag Archives: profit

Preserving My Past

This is kind of a #FlashbackFriday#FF, since I missed #ThrowbackThursday#TT, though it’s more of just an addition to my life story as made possible through the wonders of Facebook and, especially, the Timeline. Since its inception, I have seen my Timeline as a way to share contemporaneously, as well as retrospectively. I have used it as a way to share both my present and my past, the latter being primarily with the thought my two daughters will one day be able to see who I was, in some sense from the beginning. If others enjoy it, that’s a bonus. Hell – I enjoy it myself once in a while and it gives me a reason to slowly digitize some of my favorite actual, printed photos, which would not be shareable other than in person if I didn’t scan and post them. This seems like as good a place as any; better than most.

The picture I am here sharing was taken quite some time after I owned the business that resided in this small, unassuming space. Nevertheless, the size and location haven’t changed since January of 1967, when my father (fearing I was on the road to becoming a bum) purchased what was then DEB’s Snack Shop and I began managing it. We were partners. My job was to spend 14 hours a day there and his job was to show up once a day and get pissed at me for something I neglected to do or didn’t do properly, as he way it. He was very good at his job and so was I, though you wouldn’t have known it by how well he performed his special task.

This little place consisted of 14 stools and about a 10′ takeout counter. It sat in a parking lot across the street from the main entrance of the May Company store on Hill St., between 8th and 9th Streets, in downtown Los Angeles. It was small, but it was busy . . . and quite lucrative, especially for a nineteen-year-old who had recently just barely escaped High School.

It was here I learned some of the more valuable lessons I’ve been fortunate enough to benefit from. Perhaps the most important of them was given by my father when he admonished me to never ask anyone who worked for me to do something I wasn’t willing to do as well. I had five employees and every one of them was older than me, one by around thirty years. Earning their respect was of the utmost importance. Now that I think about it, I was fortunate to be raised with respect for most everyone. Another valuable lesson, which made this primary business one much easier to aspire to.

I also learned what I have always considered my first real marketing and sales lesson. This place was a snack shop. Hamburgers, hot dogs, tacos, burritos, ham sandwiches, fries, etc. We also opened up early enough for breakfast, so eggs, bacon, hash browns, etc. Of course, there were other items and most of the food was marked up 300%, that is the cost of the food item was generally 1/3 of the price we charged.

Then there were soft drinks, none of which were served in cans or bottles. We had a dispenser. The cost of a large soft drink was marginally more than a small one and the difference in cost of the cups was about a penny. The difference in profit, however, was spectacular, with the price of a large drink around two and a half times what the small one went for. I think it was $0.10 and $0.25. Let’s say I made $0.07 (in today’s money that would be $0.50) profit from the small drink. Since the cost of the large drink was marginally more than the small – let’s say $0.05 instead of $0.03 – I made a profit of $0.20 ($1.42 today) on the large drinks.

That’s the data behind it, but the real lesson was in behavior. Over a period of time, I did some experimenting. I didn’t keep a little notebook, nor did I design a devilishly clever test. People would place an order like “I’d like a cheeseburger, onion rings, and a Coke.” I merely responded in one of two ways and noted the difference in results. If I asked them “large or small” they would frequently opt for the small. However, if I merely said “large?”, they would seldom say “no”.

I don’t know how much more money I made by doing this, but I’m reasonably certain it was on the order of a few dollars a day. Extrapolated out over a year’s time, that would be around an extra couple of grand in today’s money. Not a bad result. Unfortunately, I didn’t last a year, but that’s another story. I have no regrets, btw.

PS – The name of the place in the pic is JEMP’s, which stood for Jerry, Eileen, Marshall, and Penny . . . the Silversteins. Jerry, who had worked at the Grand Central Market with my father for many years, bought the business at a discount when I kind of abruptly told the old man I was through with it. Shortly thereafter I found myself in the Haight-Ashbury district of San Francisco. This was the Summer of Love, 1967. The rest, as you no doubt know, is history.

Power To The People

Corporations, conglomerates, and industrial organizations aren’t the enemy, ipso facto. In fact, they make socialism not only possible, but necessary, IMO.

What is the enemy is unbridled greed, rampant cronyism, nepotism and, especially, the codification of deep income inequality. It is not good for a society when individuals can amass fortunes they can’t possibly spend. That they then turn some of that fortune into philanthropy and charitable organizations doesn’t change the fact that it should be criminal for one individual to take that much surplus value from the workforce that made their fortune possible. It’s estimated Jeff Bezos makes (not earns) around $2,500/second. Dafuque does he do, other than own Amazon stock?

I’m not saying inventors, creators, entrepreneurs, etc. aren’t entitled to profit from their efforts, but they shouldn’t be able to continue siphoning profit off an organization that has reached a point where it could easily survive without them. By the same token, intellectual property law has expanded patent and copyright protections way beyond their original intent, creating other avenues of indecent profit-making.

And getting back to what I said about making socialism possible and necessary, without large profitable organizations, we’d all be living off mom & pop’s and craft-making. Many of the products we enjoy, and that provide the grease that skids civilization as we know it, would not be possible without large factories, laboratories, and other institutions. By their very nature, though, they transcend the control and direction of any one individual, and I believe our pay/profit structure needs to take that much more into consideration, providing a larger share to the workers who have helped make the org successful.

Socialism is NOT a bad word!

The economic system of capitalism means that money (specifically investment, not wages) is society’s primary consideration. Socialism means people (workers, humans) are society’s primary consideration. I know what I prefer. How about you?

Sure . . . there are thorny issues of ownership and incentivization, what deserves to be nationalized and what can remain in the private sector, but they will be addressed with people, not capital, foremost in mind. And don’t come at me with that tired old trope that socialism has been tried and it’s failed. That’s not even close to the truth. Most examples given are usually of a country that attempted to go straight from feudalism to socialism, without experiencing capitalism at all.

If Karl Marx was correct, and I believe he was, economies need to develop and evolve through various stages, and attempting to circumvent one of those developmental stages isn’t a good idea. This is why I believe the U.S. economy is ripe for becoming socialist; it already is to some extent. Our economy is, if not the most advanced, one of the more advanced capitalist economies in the world. Yet, many of its sectors are—or have been—treated as worthy of receiving benefits in the form of subsidies, grants, and tax breaks that are tantamount to them being socialized.

Most importantly, many larger sectors of the economy are highly developed, with a few being in nearly monopolistic control of their market. This is what Marx called late-stage, monopoly capitalism. It suggests that larger industries, which have become monolithic, are ripe for worker ownership and a more equitable distribution of their profits to the people who actually make those profits happen.

Let’s stop treating the concept, let alone the word, of socialism as if it’s still some sort of disease or bogeyman. The forces of reaction and fascism have long told us to be afraid . . . be very afraid . . . of socialism, but they’re crying wolf and their arguments are dishonest and disingenuous. That is to say, they’re fucking liars and can’t be trusted. They don’t care about you and me. Don’t expect them to be helpful, unless they’re helping themselves.

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