By Sandra Guile
Better Business Bureau
According to the Bureau of Labor Statistics, high inflation rates are driven by significant increases in food, shelter and gas prices. Increased energy prices, supply chain disruptions and labor shortages are all adding to business owners’ expenses too.
BBB suggests the following to minimize the impact of inflation on your business:
• Evaluate expenses. Review the current spending and determine if it aligns with the overall strategy. Take a look at the line items and cancel unused products and services.
• Review the company’s products and services. Identify what products and services are the most profitable. Keep in mind that consumers might be open to lower-priced options to ease their own budgets. They also may be interested in paying more for items and services that make a stressful time more manageable. Consider temporarily cutting services or expenses to better focus on what generates the best results.
• Raise prices wisely. When considering an increase in prices for products or services to offset inflation, do so wisely. Raise costs just enough to offset the impact of inflation and to ensure your small business remains profitable. Be upfront about the increase. Let customers know ahead of time about the increase and help them understand why.
• Prioritize customer service. Focus on customer satisfaction to keep regular customers even if there is a price increase. If the budget doesn’t allow for full-time employees, consider part-time or freelance.
• Embrace technology. Artificial intelligence, automation and self-serve customer options can reduce costs.