Chico,
The balance is hard. I tend to overpay and that's just the way it is. I talk to local contractors who think that paying their guys $40k a year is a lot of money. And it is when their pricing only allows them to bill out $120k a year for that man.
But in my area, try buying a house for under $300k. If a guy can't realistically make $60k+ (plus benefits) he can't afford to live around here. And I would even say that that is low.
But with burden, that guys is going to cost you at least $72,000 (roughly 20% burden) if you supply health benefits, add on another $6-$10k depending on what you offer.
So suddenly that guy is costing you $80k/yr.
Now, guys like your old boss, and cooks old boss, I'm not sure they understand this...or if they do, i'm not sure that they care. Cooks old boss didn't pay his help much, demanded a lot, and was able to purchase a nice house for it.
I'm not saying "power to the people", I firmly believe that if you take the risks everyday to own a company, and employ people, you should reap the rewards.
I just firmly believe that the best way to reach all of your goals, is to help others achieve theirs.
