It’s 2022 and the hits keep on coming. We’ve survived another round of floods, but there’s still the aftermath. The Russia and Ukraine conflict especially impacts fuel.
China is undertaking lockdowns and faces possible sanctions. This increases pricing pressures on small business. Because of hard times, business owners are reluctant to raise prices.
Price pressures over recent years Costs for many items have increased substantially. A box of disposable gloves went from $5 to $28! The biggest impacts right now are food costs for hospitality due to impacts from floods and logistics, and for all of us, the massive increase in petrol prices.
Also increases and more to come with pay rates, superannuation, insurance costs etc. There’s no way you can keep absorbing these increases.
When did you last raise your prices?
Many businesses were reluctant to raise prices with Covid around, so for two years have held steady. You have been absorbing all of these price increases, eating into your bottom line. Combined with loss of business over the last few years, this does not set-up financial success for your business.
What happens if you don’t raise prices?
If you don’t and you really need to, your business is unlikely to survive. Remember if you don’t exist then your customer’s prices are likely to go up more. To maintain viability, if you need to raise prices, do so! Share with people your costs have increased and you can’t keep absorbing them. Show the customers the value you provide and why you are still worth it.
