Wash Cycle Laundry Blog Revenue Sharing: Can an adjustment in compensation structure increase wages and profitability?

A few months ago, we began an experiment to see if we could. Previously, we paid our commercial delivery cyclists as one normally does -- using an hourly rate. We felt pretty good about our wages -- they ranged from $10.10 to over $15 / hour (for work on government contracts) -- but we weren't satisfied with where we stood. Our small business segment was falling a little bit short of its profitability targets for the company, and while paying "above average" wages in an industry with a bad rap is good, it wasn't meeting our longer term aspirations. I wasn't unhappy with where we stood today, but we weren't nearly where I wanted to be.