You are confusing direct payment and general revenue/fees from which the store pays employees. You are correct Handling fee is not directly transferred to the employee. Handling fee is revenue collected by the store. Now that they have a big pool of revenue, they pay their employees from it (the minimum wage you referred to). Read that in context of the next two paragraphs.
WRT cashiers and stockers that was part of the existing business model. The general profit from groceries covered those expenses.
The general profit from groceries does not cover the expense of a different business model of hiring additional employees whose sole job would be to walk around filling orders. Those additional jobs require additional revenue, which the store gets from handling fee.
The next question may be “why a Handling fee” instead of paying those employees from general profit from groceries. The answer is because online orders have a new direct cost, which the store wants to put on those customers that are creating that cost. That’s the short of it.
Handling fee is revenue collected by the store. Now that they have a big pool of revenue, they pay their employees from it (the minimum wage you referred to). Read that in context of the next two paragraphs.
WRT cashiers and stockers that was part of the existing business model. The general profit from groceries covered those expenses.
The general profit from groceries does not cover the expense of a different business model of hiring additional employees whose sole job would be to walk around filling orders. Those additional jobs require additional revenue, which the store gets from handling fee.
Are you implying that stores which are NOT charging a handling fee are losing money?
Regardless of whether they have to hire extra staff to pick items, or to develop a website for online ordering, or to deliver these items in their own vehicles, that’s an expense they bulk into the cost of running their business. They would then set prices for the goods they sell based on those expenses + whatever markup they choose.
I will point out that grocery stores have been making a record profit since COVID, and a big part of that is because of online ordering (and price-gouging🤫). We’re talking companies who don’t charge a handling fee, and some who offer free shipping.
At the end of the day, charging a handling fee in excess of the shipping fee, then asking for a tip, is mildly infuriating.
I think I’m done explaining things. You’re not trying to understand, you’re trying to argue. Sorry to say but your confusion is never ending. And you’re weirdly argumentative over something when you clearly have no idea about business or accounting. Like did a handling fee rape your mother or something? No need to answer, ciao.
I’ve had a small business for 20 years, and worked in other small business’ for longer. I’m also keenly aware of my country’s grocery store industry, as they’ve quite literally being caught in price-fixing schemes, expiry-label swapping scams, and price gouging.
This little extra fee scam is just one more thing.
I appreciate your input, but we really do have two different perspectives on this.
You are confusing direct payment and general revenue/fees from which the store pays employees. You are correct Handling fee is not directly transferred to the employee. Handling fee is revenue collected by the store. Now that they have a big pool of revenue, they pay their employees from it (the minimum wage you referred to). Read that in context of the next two paragraphs.
WRT cashiers and stockers that was part of the existing business model. The general profit from groceries covered those expenses.
The general profit from groceries does not cover the expense of a different business model of hiring additional employees whose sole job would be to walk around filling orders. Those additional jobs require additional revenue, which the store gets from handling fee.
The next question may be “why a Handling fee” instead of paying those employees from general profit from groceries. The answer is because online orders have a new direct cost, which the store wants to put on those customers that are creating that cost. That’s the short of it.
Tipping is an entirely different part of this.
Are you implying that stores which are NOT charging a handling fee are losing money?
Regardless of whether they have to hire extra staff to pick items, or to develop a website for online ordering, or to deliver these items in their own vehicles, that’s an expense they bulk into the cost of running their business. They would then set prices for the goods they sell based on those expenses + whatever markup they choose.
I will point out that grocery stores have been making a record profit since COVID, and a big part of that is because of online ordering (and price-gouging🤫). We’re talking companies who don’t charge a handling fee, and some who offer free shipping.
At the end of the day, charging a handling fee in excess of the shipping fee, then asking for a tip, is mildly infuriating.
I think I’m done explaining things. You’re not trying to understand, you’re trying to argue. Sorry to say but your confusion is never ending. And you’re weirdly argumentative over something when you clearly have no idea about business or accounting. Like did a handling fee rape your mother or something? No need to answer, ciao.
I’ve had a small business for 20 years, and worked in other small business’ for longer. I’m also keenly aware of my country’s grocery store industry, as they’ve quite literally being caught in price-fixing schemes, expiry-label swapping scams, and price gouging.
This little extra fee scam is just one more thing.
I appreciate your input, but we really do have two different perspectives on this.