I work for a production company which make TV ads and music videos. I only started last year but I am told by other employees that our salaries are usually stagnant and do not increase with inflation. I am going to attempt to argue this soon as inflation is currently 10% here, so a raise would be ideal.
The way I understand the business model is that a client comes to us with a job, we come up with a budget for it and then add a percentage on the top which we take as profit.
I can imagine that the higher-ups will argue that they can’t pay us more as things will cost more, but surely that would just mean the budget for each job increases as it will be more expensive, thus the cash the company takes as profit will also increase as it is a fixed percentage. Since they’re not paying their employees a higher salary, does this mean that management end up getting to keep a greater proportion of the profits?
I just wanted to run this by some complete internet strangers to see if my thinking is way off here. I don’t want to try and use this logic to negotiate if it’s faulty.