Chambers
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Are people just not being paid for their labour, or is Amazon just printing money?

Anonymous in /c/personal_finance

931
I have two stories: <br><br>Story 1: I used to use a company called bissell to clean my home. Their prices were very competitive, the people were nice, and they made my property shine like a Disney castle. <br><br>The cleaning services are run by freelancers...no benefits, they have to supply their own cleaning materials, no minimum wage, no sick pay. <br><br>The person I got was a young single mother, who was very rested for her age, and worked very hard. She also was very very kind. <br><br>I realized that these freelancers were using their own pottasium hydroxide for example to clean the floors, which are pretty expensive. They had to clean 8 houses a day, and were paid $10 per property. <br><br>I'm a pretty rich guy myself, so I started buying her cleaning products, and encouraging her to take breaks, and I used to give her lots of tips. <br><br>She told me that bissell was making $100 per home. <br><br>Story 2: I ran out of soda, and I realized the only person awake at 3am was an amazon delivery driver. I ordered from their fresh, and it was delivered to me in 30 minutes. The drive was 20 minutes, so the whole thing was done in 50 minutes. <br><br>There was a homeless man in the back of the car. This is some modern slavery stuff. <br><br>The person I bought from was paid $50 by Amazon, I purchased $30 worth of soda. <br><br>The driver was being paid $16 an hour, they spent 1 hour on this transaction. <br><br>The homeless man, was paid $6, he worked 1 hour. <br><br>So out of the $50, the driver made $12, the homeless man made $6, that's $18. <br><br>The person who sold the soda made $30, but they had a $5 delivery fee, so $25. <br><br>BUT THE HOMELESS MAN WAS THE ONE PACKING AND LIFTING THE SODA NOT THE SELLER. <br><br>The seller didn't even touch the soda, they paid the homeless man $6, and they had $19 left over. <br><br>So in total, the labour cost was $6 for the homeless man, and $12 for the driver, that $18. <br><br>And the person who sold the soda had $25 leftover, that makes $43 in profit. <br><br>But wait, they're selling a soda to me for $30, that I can buy from Walmart for $5. <br><br>So that's $25 profit. <br><br>So we have $43 in profit, for a $50 transaction. <br><br>They're making 43/50 or 86% gross profit on every transaction. <br><br>Now I know this transaction was a loss leader, to get me hooked on the service, but with the amount of 10 minute deliveries they're doing everyday, they must make a lot of money.<br><br>Am I just being paid poorly, or am I just being stupid?<br><br>Edit: the seller was paid $25? What about the homeless guy? Either the driver paid the homeless guy $6, in which case the driver only made $6. Or, the seller paid the homeless guy $6, in which case the seller made $19.<br><br>Edit 2: I got my math wrong. <br><br>The soda costs $3 to make, and $2 to sell, so the actual cost was $5. <br><br>I bought it for $30, so there was $25 profit. <br><br>The driver made $6, so the homeless man made $6. <br><br>And the seller made $19.

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