With rising prices on Main Street, more and more pop and pop businesses are making the difficult decision to transfer their costs to customers, as they worry that customers will turn to larger chains where they can get lower prices.
Sarah Piepenburg, the owner of Vinaigrette, which sells olive oil and vinegar specialty in Minneapolis, expressed relief that her sales had dropped by only 15 percent during the months of the epidemic, but added that her costs had risen sharply, increasing by about 50 percent.
Piepenburg stopped for as long as possible, but said he was hesitant to plan to increase prices in the next two weeks after the increase in the cost of glass bottles to transportation costs.
“We really want to keep our customers, because we know we are the best product,” he said. “We have a very reliable customer base. “
Piepenburg is not alone in his struggle. The National Federation of Independent Business, a small group of small traders, has found that high costs continue to put pressure on business owners to have higher purchasing costs, elements and bulk transportation in the huge rise in labor costs that many workers have had to contend with.
The NFIB Small Business Optimism Index went down last month, weighed down by additional negative emotions. Nine out of 10 small business owners surveyed said supply chain problems had affected them.
“They have to deal with the rising cost of inputs in respect of goods and services, and they have a problem measuring compensation that is growing,” said Holly Wade, executive director of the research institute.
The number of surveyed business owners expecting better conditions over the next six months has continued to decline – to the lowest reading rate since November 2012 – with 57 percent reporting lower sales prices, compared with only 6 percent lowering prices. About half said they plan to raise prices.
“One of the biggest pressures that homeowners have to deal with is inflating and making sure they stay competitive. It is a critical measurement, ”said Wade.
“They do not see these problems getting easier anytime soon,” he said. “These repairs will continue for some time until the storms subside.”
Significant inflation metrics at the full level released on Tuesday, according to the October Labor Department’s producer price index, increased 8.6 percent from the previous year – a rising rate in line with September’s annual record high. Every month, producer prices rose by 0.6 percent, an increase caused by rising fuel prices. However, even after food and energy prices were eliminated, so-called primary inflation exceeded 0.5 percent per month.
“Many of the global factors that have impacted all business plans are affecting us this holiday season,” said Sarah Crozier, communications director of the Main Street Alliance, a small business venture, urging lawmakers to succeed. remaining on President Joe Biden’s legal agenda, which includes investments to strengthen property financing.
Crozier said travel and transportation issues make it even more difficult and expensive for businesses to acquire consumer goods and services, especially for those in the overseas sector. “What is worrying, especially for small business owners, is that these approaches continue,” he said.
Christopher Slowinski, founder of New York City-based jewelry manufacturer Christopher Designs, said, “Our industry is on track.
Recently, Slowinski said, he has been struggling to find goods like diamonds through his company’s signature production equipment.
Slowinski, who sells his wares at jewelry stores, said retailers told him the demand remained strong – even though sticker prices had risen by almost 5 percent. “The consumer market is very strong. They are looking to buy, ”he said.
“The problem is, even if we want to get the tools and materials we need to produce, it’s the same thing. What we paid six months ago, is more now, ”he said.
And sometimes, you find that things are not available at any cost. When the working machine broke down, Slowinski tried to buy a new one, but found that one had been returned with no delivery date. “So I’m just trying to fix it myself,” he said. “It happens to everything you need in business.”
Wade, of the National Federation of Independent Business, said the inability to access equipment, services or staff was one of the reasons why small businesses were losing sales. “All of these problems reduce their ability to meet those marketing opportunities,” he said.
Lack of access to resources, resources or staff is one of the factors that causes small businesses to lose sales.
The manager of the public bank said he felt concern from all sides – from business owners, consumers and investors concerned about the impact of inflation on their nest eggs.
“The economy was not built to meet these needs as we see today. There is a conflict between efficiency and efficiency, ”said John Cunnison, chief investment officer at Baker Boyer Bank, based in Walla Walla, Washington. “For small businesses, they have difficulty finding help.”
Cunnison said small business owners in his community were struggling to make ends meet. He said: “Noise from the grocery store creates some noise.