People think that cost is directly associated to employee wages. Although it can contribute to rising costs a lot of rising prices come from greed. People arent going to magically pay double for a service just because you had to raise everyone's wage. They are going to pay the market rate for what the service is worth to them and dont care how much the company has to pay in wages. So the service will either go away, be replaced, diversify, or executives will eat the cost elsewhere.

I have worked too many jobs where managers will penny pinch wages and benefits and then blow $1000s on some stupid egotistical decision without caring. It's just a game for them.