We firmly believe paying people well, providing good benefits, and respecting them makes us more money long term.
We could slash pay/benefits today and probably make a fortune for the next few months. But what happens six months from now when all of our top talent is gone? The customer experience starts to suffer and we see a decline in business. We have to now cut prices to bring people back or even just retain their business. So now we are probably making the same profit margin on less revenue.
Even if we are 100% wrong and we are missing out on some money, who cares. Me and my partner both have more than we will ever need. If a few bucks are slipping out of our pockets and helping other people, who gives a fuck.