ECOMAIDS developer pays the price to win in Pacific Northwest

The popular push for increasing the minimum wage has gained steam over the past year, and debates have been fierce at both the state and the national level over how much and how quickly advocates would like to see the prevailing wage rise above the federal minimum of $7.25 per hour. Many states and cities have established minimum wages well above the national level—some of which rise automatically every year tied to inflation—and even more are set to raise their wage floors next year. Washington and Oregon are the two states with the highest minimum wages in the country, at $9.32 per hour and $9.10 per hour, respectively. Franchise operators in all industries in those two Pacific Northwest states have taken to editorial pages and statehouses to lobby against further minimum-wage hikes, questioning whether it is worth it to expand their businesses in those markets with labor costs climbing every year. But one successful franchisee, Lindsay Dellasega of ECOMAIDS, in undeterred in her plans to expand the environmentally friendly cleaning franchise to markets surrounding her home base of Portland, Oregon. Dellasega has been able to grow her territory in a high-wage state like Oregon while remaining profitable, and earlier this year she became ECOMAIDS’ first area developer. She is targeting growth markets in Northern California and Washington, and while minimum-wage inflation is another factor through which she must manage, she doesn’t plan on letting it slow her down. She spoke with 1851 Magazine about her plans to expand. What is the typical pay for an ECOMAIDS employee? My employees start at $9.50 per hour, 40 cents above the current minimum wage in Oregon, but after the 4-to-6-week training period, they earn between $10 and 10.50 per hour, including a per-job feedback bonus. They range between $10.50 and 13.50 per hour, including the feedback bonus, with growth in annual reviews. Has the rise in minimum wage changed or affected your growth plans, strategy? No, the business growth plans account for increases in costs. It is just another factor in needing to maintain steady revenue growth, to offset the incremental overhead growth. I prefer to pay higher wages and expect quality employees to reduce the costs of inefficiency, inconsistent performance and turnover. I feel that investing in your people is the best approach here. Is being located in the Pacific Northwest making the task of finding unit franchisees harder? The minimum wage is a reflection on that state's cost of living and justifies a higher price for service. Our business model promotes both the quality of the service and the relationship, and that depends on quality people. There is value placed on this quality, and our target client prefers this to taking on the risk of lower-cost service.