There is always convenience customers, loyal customers and opportunity customers who do not care about the 2-3% difference in price.
I'm not saying you are wrong, it could definitely be this case, just that there might be more factors to consider.
sorry, I thought the store was open until it closed down and posted its reasons?
The problem with following the don't raise wages strategy and wait for your competitor to do it is if they outlast you - you reach the have to close position first.
>By not raising wages, keeping your employees and staying open you will definitely go under.
unless something changes that will make it profitable to raise wages.
>There is always convenience customers, loyal customers and opportunity customers who do not care about the 2-3% difference in price.
In a small margins business this might not be enough to keep you afloat.
There are some small business owners very clearly in need of psychological help, so this tracks.
That would mean the people running those businesses were in need of psychological help, it is pretty much crazy to close your business because you refuse to raise wages.
I propose a counter explanation - your business has a very tight margin - if you raise wages you cannot afford to continue in business unless you raise prices. If there is a competing business nearby and you raise prices you lose customers to competitor and you will have to go out of business - unless of course competitor also raises prices.
You and competitor(s) sit around waiting to see who will raise prices first, probably one of you closes up because they don't have enough workers.
The one who remains open gets customers, because of extra income from customers they might be able to raise wages. At any rate they can probably raise wages because competitor that closed can't just reopen without any down time.