hi, everyone welcome to "on the money." i'm becky quick. amazon's big move paying workers more, but will it cost you the next time you go shopping? interest rates are going up, and that matters if you're thinking about a big purchase like a car what you can do about it the new app that lets you pick up some extra cash when you're behind the wheel from a company that wants to disrupt delivery services. and the 800-pound gorilla in the room that people may not like to talk about an unusual invention that has one business with a backlog of profits. >> matt is disgusting. >> "on the money" starts right now. >> announcer: this is "on the money. your money

your life. your future. now, becky quick we begin with the battle for workers and wages. next month, amazon will begin sending 350,000 employees something extra in their paycheck, a higher wage. amazon's new minimum will be $15 an hour, but will more money for workers cost you more money when you shop that's this week's cover story >> a $15 an hour -- >> amazon is increasing its u.s. minimum wage to $15 an hour from the current average of $11 at the white house, president trump's economic adviser applauded the move >> good for them good for -- i'm in favor of higher wages. >> but amazon is fazing out its stock option program, saying employees prefer cash compensation that is, quote, more immediate and predictable while amazon founder and ceo jeff bezos has become the richest person in the world, the company has faced criticism for low wages and poor working conditions at its warehouses. >> we stepped back, we listened

to our critics, we thought long and hard about what we wanted to do we really evaluated our approach to compensation and decided we wanted to lead, we wanted to come out, we wanted to do this now. >> meanwhile, amazon's retail rivals have been increasingly raising pay to attract and keep workers. in january, walmart's minimum wage jumped to $11 an hour in march, target went from $11 to $12 and plans to reach $15 by 2020 on november 1st, when amazon's $15 wage begins, it will more than double the federal minimum wage, which has remained at $7.25 for nearly a decade. so, will other retailers have to follow amazon and boost their workers' pay jerry storch is ceo of storch advisors he was ceo at toys "r" us and a top executive at retailers from target to saks fifth avenue. thanks for being here. great to see you >> pleasure being here, becky. >> why now with amazon why this boost >> well, they accelerated the inevitable and they were able to grab a victory from something that was a negative for them the wages are going up, no matter what. the economy is very hot,

unemployment is very low, you know in some jurisdictions, $15 an hour's going to be mandated, you know some it already is in new york city, it's going to start at the turn of the year. so even to get workers, retailers are having to pay more already. so, they saw this coming i know i talk to a number of retailers constantly, and many were already thinking about doing this. >> what does this mean for other retailers? as you said, some were already thinking of getting to a higher minimum wage, but how much pressure does this add to that >> you know, i cannot believe that others are not going to follow suit very rapidly. >> just in order to find workers? >> you know, if you don't, you have a demotivated workforce and lower skilled than what amazon's going to get and what your competitors are going to get so, the retailers who can afford to are absolutely going to get there a lot faster than they're going to now, you have a group of retailers that are troubled right now. it's no secret it's not an easy time for bricks and mortar retailers. you have those on their backs already who have had to have restructuring programs wit layoffs and store closings and everything and it will all be negated by the need to raise

wages. so, those that are in trouble, it's like a noose around their neck now tightening. i would say amazon, given the nature of its workforce, mor in the distribution center, of course, doesn't have all of those thousands of retail clerks out there, then they can also turn to automation to offset a higher wage more easily than a bricks and mortar retailer so, when you really look at it, it's good public relations for amazon, it was going to happen anyway, and it strengthens their already, you know, significant lead over most other retailers. >> you know, some people sitting at home, does this mean that i am going to have to pay higher prices when i start shopping is that the case or not? >> not because of the large retailers like walmart or amazon or target or any of them, because that market's very competitive. they're not going to try to charge more because they're at $15 an hour than they would have charged otherwise or what target or walmart would have charged. that's just absurd they can't do that they won't do that they'll take the short-term pain here for the long-term gain in the wage rate increase that doesn't mean prices aren't rising in the economy as a

whole, because of course, they are, because of significant inflationary pressures that we see across the board. >> we have just seen toys "r" us go through not only this awful bankruptcy, but the one that you don't emerge from, where the stores are shut down. >> sure. >> people lost their jobs. and as you get into the holiday season, there's no real way to find a toy store that kind of caters to everything you're looking for. such a sad tale. did this have to happen? >> i don't think it did have to happen, but it's not -- i think people going into it, you know -- as you know, it was an lbo company, one of the most significant -- >> a leverage buyout. >> a leverage buyout, of our generation so it was very, very highly leveraged but the world changed significantly. something that was a castrating machine turned into a business that required significant investment and building up an internet business and making the stores better than they used to be in order to compete with the internet they're not the only ones. take a look at neiman marcus, a very different type of business all these lbos from that generation in retail had to struggle because the world changed, and the fundamental business proposition under which the deal was done have changed.

>> i want to thank you so much for your time today. >> thank you, my pleasure. >> gerald storch whether you've noticed or not, interest rates are on the rise, and that matters if you're planning on a big purchase, like a car or a truck phil lebeau joins us right now with what it could mean to your wallet phil, it's good to see you what's something like this, what's the impact on either a new or used car shopper? >> reporter: well, you'll pay a slightly higher interest rate. and we've seen interest rates for auto loans go up about 1.5% over the last five years right now, the average interest rate for an auto loan comes in at just under 5.8% the monthly payment right now is $525 it's widely believed in the auto industry, becky, that most consumers want to keep that monthly payment under $500, but they're struggling to do that, in part because the purchase price keeps moving up as vehicles become more expensive and so, as a result, this interest rate is important because people will wind up paying just a little bit more every month as the interest rates move higher. >> yeah, that's pretty significant when you put it in

dollar terms like that, phil what are buyers doing about that and what are the automakers doing to try to counter any of it >> reporter: well, for the buyers, they're stretching out their loans over a longer period of time. you know, becky, when we first started buying cars, it was unusual for somebody to stretch out an auto loan over five years. well, that's not even the normal anymore. increasingly, it's six years, and we're seeing seven-year loans become much more popular. >> what? >> people are stretching them out so they can bring down how much they have to pay every month. and for the automakers, i mean, the challenge they're running into is, as prices move higher, do they hit some resistance, a point where people say, i'm not going to pay $550 a month for a new vehicle? >> all right, phil, thank you. always great to see you. >> reporter: you, too. >> phil lebeau up next, we are "on the money. whether you are driving to work or getting away for vacation, how about cashing in on that road trip? making a delivery that's already on your way. and later, trying to pay off student debt and save for retirement at the same time?

we'll help you crunch th numbers to best allocate your money. right now, though, let's take a look at how the stock market ended the week

♪ if you are looking for a way to pick up a little extra cash without going out of your way, guess what, there's a company interested in your services. it's called roady, and the company crudsources deliveries all you have to do is have an app and a drier's license. joining us to explain how it works is mark gorland, the

founder and ceo of roady mark, good to have you. >> thank you for having me. >> explain how this works, what the pricing setup is if somebody's going in a direction, they can pick up a load and deliver it, just based on what? >> it's essentially people that are already on the road heading in the right direction, so it's as simple as an app and as easy as ordering a pizza. put in what you have, where it needs to go, it will show you the price and post it. if you're a driver, set up the places you normally go and we'll let you know when it's going in that direction, so you can literally get paid for going wherever you're going. >> what does the driver make >> they can make anywhere from $8 to $650 if they're driving across the country to take your couch. >> wow if i'm just maybe coming home on my normal commute home from work, i can drop something off for 8, 10, 15 bucks? >> yeah, absolutely. >> it's a great idea, but what's the genesis? what got you into this whole thing? >> i have a condo that was doing a renovation project and tile was being shipped there for a bathroom and i was in montgomery, alabama, and it wound up being

totally broken, couldn't be there until the next week, but then i realized it was in birmingham, alabama, about an hour and a half north. so, i'm sitting on the highway seeing all of the cars going north and south and thought, there's bound to be somebody going that way anyway, surely they'd throw the tile in their truck. i'd give them 20 bucks, you know, they're heading here anyway and from there, i realized everybody's got a tile story it might be getting medicine to their kids they forgot about or getting a car from their hotel and there's millions of cars on the road it's almost a natural resource of delivery if you give people a chance to use it. >> how many drivers do you have signed up now? >> we have over 90,000 drivers in the network right now >> wow. >> in every state. >> let's talk a little bit about what your plan was your thought was not only to help consumers but also small businesses so that they would have the same sort of logistics that an amazon or somebody could have but you started working with big companies recently, too. i think delta is among the companies that you're with so, how does that kind of spread out? >> absolutely. well, we work with delta air lines, with home depot, with tractor supply, coca-cola bottling

and it works, and they've got same-day delivery needs. on the off chance that your bag may not have made its flight and get somewhere, we're able to get it to you super fast somebody at the airport, a pilot, passenger, a flight attendant, you when you land might be taking it to a neighbor a couple of streets down you get paid for going home when you're leaving the airport pay for your parking there and what's cool is you usually meet somebody and there's usually some sort of interesting collision of folks that helping one another out because you're going there anyway, which is kind of nice with technology that brings people together versus everything else you can sit at home and order something on amazon and never have to see people >> what's the weirdest thing you've ever heard about getting delivered through your service >> we have a lot of them one of my favorites is somebody sold a jar jar binks 7-foot tall statue from "star wars" and it had to be delivered from colorado to santa monica >> ah, there's a picture >> yes that is -- >> that's pretty weird. >> that is jar jar. >> he's not even one of the good characters.

>> i know! but it was just shocking when it went through the system. but we have cool ones. i mean, i'm a university of georgia football fan this last weekend, a friend of mine was almost already at the stadium, would have had to go back to atlanta and back, set up for tickets. somebody picked him up within two hours, it's there, didn't have to go back and forth. >> oh, wow. >> you don't realize as consumers how often you can use these services -- >> trust me, i realize how often i forget things. trust me, i do get it. it's a great idea. and marc, i want to thank you for coming in. >> thank you so much for having me. >> great to see you. up next, we are "on the money. is student loan debt slowing down your savings for later in life we've got some tips on how you can best tackle your money goals. and later, a breakthrough in shaving, but it may not be what you think. you've got to see this to believe it ♪

♪ i'm in love with you ohhh ohhh ♪ some things are meant to be together.

get the new iphone on xfinity mobile ask how you get xfinity mobile included with xfinity internet so all you pay for is data. and now get $200 back when you buy a new iphone. click, call, or visit a store today. ♪ student loan debt in this country has topped $1.5 trillion meantime, a third of americans have less than $5,000 in their retirement accounts. it's a common financial dilemma, paying off student loans versus saving for retirement. sharon epperson joins us right now to help sort it out. sharon, those are pretty startling statistics is there a direct correlation? what's the impact on people trying to pay down student loans and save for retirement? >> there's a significant impact, no matter how large or small your student loan is on your overall assets over time it starts when you're just starting out and you're trying to decide which to save for. boston college did a study they looked at by the time you're 30 years old, if you have

student loan debt, you're likely to have half as much saved in a retirement account than if you did not have student loans we're talking about a difference between about $9,100 versus over $18,000 if you didn't have that student loan debt. and then it continues. families looking at having student loans even if just one person in that family has a student loan overall, that can have a significant impact on your overall assets, a change from $128,000 to nearly $210,000 in overall assets if you do not have student loans so, it definitely has an impact. >> i mean, that's a double whammy, so to speak, because if you're saddled with the student loans, you need to pay it off so that you're not paying the interest continually over it, but the whole key to retirement savings is you need a really long runway, and a lot of time for those savings to compound. >> that's exactly right. so, the reality is that you have to really start dealing with both as soon as possible and ideally -- and this sounds crazy for many students -- is that you start paying off some of your student loan while you're in college.

that sounds crazy, but again, it's the way to really make sure that you're not paying over such a long period of time. but there are other steps that you can take, the first being look at the interest on your student loan debt, and you want to make sure that you're taking advantage of the greatest interest that you can get, whether that's paying off that debt, which might be, say it's 7% or so, or you're going to get a return on your investments in your retirement account that you think is going to be guaranteed at 7%. >> that's tricky. >> and we know investments are never guaranteed. >> right. >> so that's something to keep in mind. you also want to look at what your tax deduction could be. if you qualify for a student loan tax deduction, that could be significant, $2,500 but there are also tax advantages to saving for retirement >> 401(k)? >> yeah, whether you're reducing your taxable income in an i.r.a. or 401(k) or not having that tax deduction now, but having a tax-free account in a roth i.r.a., so there are different things to consider there. >> okay, so if somebody's kind of balancing and saying how much should be going towards my

student loans, how much should be going towards savings for retirement, is there a rule for this kind of stuff >> you have to budget. you have to come up with what's coming in in terms of your income and what's going out. if what's coming in is not enough to pay down that student loan debt or pay that monthly payment, you want to consider an income-driven repayment plan, and that's on your federal loans. that's where you pay really based on your income with private student loans, that's where you have the refinancing options. and it is possible sometimes to see a loan that's 6% and 8% interest come down to 3.5%, 4% -- >> although as that probably tougher to find in a rising rate environment. >> it is tougher to find in a rising rate environment, but what you can do and what's free money is if you have a 401(k) plan at work, you do not want to give up that free money. make sure you're contributing to that. >> not only that, but a lot of times employers will match and that's what you're leaving on the table. >> exactly that's the free money you don't want to miss out on. you want to contribute at least to the company match >> sharon, thank you very much. >> sure. >> good to see you. up next "on the money," a look at the news for the week ahead. and don't worry, this company's got your back, literally.

♪ here are the stories coming up this week that may impact your money on monday, we'll be getting the closely watched retail sales number then on tuesday, we'll see how the manufacturing sector is doing with the industrial production report. on wednesday, housing starts for september are out and the federal reserve will release the minutes from its september meeting. also, a high point for cannabis advocates north of the border. canada will officially legalize

marijuana. then on friday, we'll see how many existing homes sold last month. from shaving their legs to shaving other body parts, women spend a lot of time to stay groomed. most men, well, not so much. right now, though, there's a new way to make men a little less furry, and no hot wax involved our jane wells explains. >> go ahead. >> reporter: i may be wearing a gorilla suit, but the guy wearing the mask has a gorilla's back mm, back hair. so sexy, said no woman ever. >> nobody wants to see that. >> reporter: so, a couple from chicago solved the problem by creating the bakblade. how many units have you sold total? >> over a million. >> reporter: 40-year-old matt dryfhout was in sales and had started a couple of companies, but he found his biggest success due to a pet peeve of his wife, angel

>> angel would often tell me, matt, you know, your back hair's growing back >> i don't do hair. >> and she doesn't do hair i didn't even know the hair was even there. >> reporter: angel dryfhout hates back hair so much, she even has nicknames for it. >> the very first is called the peek-a-boo we have the angel wings, which happens to be in this area here. this one down here, which is called the money tail. and that is disgusting. >> it was one of those things where she would tell me, listen, let me wax it, and i just remember sitting in her parents' basement with this table, laying on it, having a couple coronas just to get through the pain >> reporter: through that pain came an idea -- create a device men could use to shave their own backs without shaving gel, in the shower. >> it was literally just baptism by fire. >> reporter: that was 2011, and angel insisted they move slowly, spending $5,000 to $10,000, refusing to take on debt over the next two years, they

tested a lot of prototypes they launched the first version of the bakblade in 2013. >> it was like maybe selling ten of them a day. >> we knew that this is it. >> yeah. >> like, we absolutely have a product that we know will sell well >> i try to take charge and shave his back -- >> reporter: then they made this marketing video in 2016 for two crowdsourcing campaigns to help fund a new-and-improved bakblade. >> we were thinking maybe even if we raised $100,000, we would be happy. >> reporter: what'd you raise? >> $1 million between the two. >> reporter: 2017 sales topped $4 million, a number the dryfhouts expect to more than double this year they're talking to medical suppliers about using back blades for trauma or emergency surgery purposes, and they're rolling out a subscription service for the razor blades up next, a product for women similar to the bakblade called the she shaver why hasn't this been invented? >> i think we can get over, you know, $50 million in the next

couple years. >> reporter: annually or total >> annually. >> reporter: okay. the biggest challenge they had was creating a housing for the blades so men didn't cut themselves when they're shaving an area that they can't see, and they've created some online tutorials, becky, so that you can do this even outside the shower, completely dry on your back without gel >> oh, my gosh, jane so many, many questions that come to mind first of all, who was the guinea pig who was testing out these prototypes was it him >> reporter: everybody in the family this was purely a family affair. father-in-law, dad, cousin, whatever they'd come through, all right, you start, it started, yeah. a lot of mistakes, a lot of band-aids along the way until they figured it out. >> if you're shaving instead of waxing, doesn't it come back thicker and more stubbly than ever before? >> reporter: no, well, yes, but of course, it's less painful but here's the deal. the first time you do it, it's a little rough you're supposed to maintain it

maybe once a week. and the thing is, men will make an appointment for waxing and they'll never go so, they'll use this because it's in the bathroom and it's convenient, and their wives or girlfriends or male partners are thrilled. >> that's awesome. jane, thank you very much. great to see you. >> reporter: you bet. >> jane wells. that's our show for today, folks. i'm becky quick. thank you so much for joining us next week, you ever just want to break something? guess what, there's a new business where you can smash things into smithereens! sounds like fun, right our eric chemi takes some swings we'll see more each week, keep it right here. we're "on the money. have a great one and we'll see you next weekend

hey, there we're live from the nasdaq market site in times square. we have a big show for you tonight. here is what's coming up ♪ unbreakable netflix shares soared today after a wild week. >> it's merrickle! >> but the chart master tells us don't trust the bounce he'll tell us why. plus, industrials are getting crushed! >> ahhhh >> chill out, dude, because mike khouw has a way to protect from more losses. and ship stocks are sinking and dan nathan says the recent sell-off is the tip of the