Inflation and price increases affect small businesses

[Starmix]

Inflation and price increases affect small businesses without doubt and this makes them worry much . With inflation driving up the costs of goods and services, starting a business this year is more expensive than in previous years. Many small business owners also fear a looming or ongoing recession today, making them more hesitant to take the next steps. This is one reason why I postponed my plan to open another branch of my milk tea business because of inflation and high prices. I may not be able to pay the staff and rent of the space. But inflation seems forever, well I have to make a good plan on what to do with my plans.

 

[eLdavis]

Even running and managing your existing business has become a lot more difficult this period, especially when it comes to dealing with customers who have refused to pay the new price.

 

[Starmix]

We can't blame the customers for refusing to pay. They might have no money and were on shocked because of the change of prices. I experienced it too.

 

[eLdavis]

We can't blame the customers for refusing to pay. They might have no money and were on shocked because of the change of prices. I experienced it too.

True, but at the same time they are very much aware of the increase in price of things going on all over the country, so at least they should have it in back of their minds that there is every possibility that the price of whatever they want to buy has increased, rather than blaming the seller for increasing price.

 

[Starmix]

True, but at the same time they are very much aware of the increase in price of things going on all over the country, so at least they should have it in back of their minds that there is every possibility that the price of whatever they want to buy has increased, rather than blaming the seller for increasing price.

Some people lack commonsense. When there's price increase it's not a one person policy but universal, they better work harder to earn more and adjust their extravagance.

 

[Augusta]

As a matter of fact it does affect it in a big way. it might makes it impossible for the business to have high stock of goods.

 

[Starmix]

There are small businesses here in my place forced to close their small stores. They earned only a little profit and the electric bill is moving fast so they better close their small stores.

 

[eLdavis]

Some people lack commonsense. When there's price increase it's not a one person policy but universal, they better work harder to earn more and adjust their extravagance.

Exactly it's very annoying. Like yesterday a client came to ask me how much for 50 pieces of customized jotters. After giving her the cost, she started acting like I wanted to cheat her, pricing it to almost notting. I was like am not the only one doing this, the paper I will have to buy them. To print out the design, I don't have the machine so am paying outside parties for this, then the fixing of the books. Even if I had the machines, it would still cost me to buy the paper and inks.

 

[Starmix]

Exactly it's very annoying. Like yesterday a client came to ask me how much for 50 pieces of customized jotters. After giving her the cost, she started acting like I wanted to cheat her, pricing it to almost notting. I was like am not the only one doing this, the paper I will have to buy them. To print out the design, I don't have the machine so am paying outside parties for this, then the fixing of the books. Even if I had the machines, it would still cost me to buy the paper and inks.

There are customers like that thinking you are manipulating the prices, however they will know the reality once they go to other business center like yours,perhaps expensive that what you have

 

[eLdavis]

There are customers like that thinking you are manipulating the prices, however they will know the reality once they go to other business center like yours,perhaps expensive that what you have

Yes that's just the best way to treat them. By the time they go out there, they would know how things are.

 

[Starmix]

Yes that's just the best way to treat them. By the time they go out there, they would know how things are.

They will surely feel ashamed of what they are doing in your business and may make amends next time when they drop by.

 

[Stardom22]

l think that the operation of the businesses is very difficult in most parts of the world.
The inflation has caused the prices of many items to rise up which makes the business operations very difficult so to speak.

 

[Starmix]

Indeed affected most are the small busines operators who may lack sufficient capital to thrive. Inflation kills people's happiness and hope.

 

[Suba]

Not all types of inflation will affect small businesses, especially if light inflation or less than 10%, small entrepreneurs will not be so shaken, even though prices have risen in purchasing merchandise or raw materials, but usually small businesses will be able to quickly adjust. Unless heavy inflation is above 30%, it will disrupt small entrepreneurs.

 

[Xtynehappy]

Small business are really being affected by the inflation. The economy is being ravaged and the business is down.

 

[Suba]

Small business are really being affected by the inflation. The economy is being ravaged and the business is down.

In almost all countries, inflation occurs every year, even though it is only under 10% or mild inflation and the price of goods will rise by around 3%. Even in the United States for 2022 the inflation rate will reach 8%. Should small entrepreneurs close/go bankrupt every year?

 

[Starmix]

Not all types of inflation will affect small businesses, especially if light inflation or less than 10%, small entrepreneurs will not be so shaken, even though prices have risen in purchasing merchandise or raw materials, but usually small businesses will be able to quickly adjust. Unless heavy inflation is above 30%, it will disrupt small entrepreneurs.

Indeed, it depends like my small milk tea business it's still alive and yields good profit daily though there's a little bit difference because of the cost of ingredients that are getting higher.

 

[Suba]

Indeed, it depends like my small milk tea business it's still alive and yields good profit daily though there's a little bit difference because of the cost of ingredients that are getting higher.

In light inflation, prices usually rise below 5%, and the economy is hampered for a moment and then recovers easily and runs smoothly. Meanwhile, with medium inflation above 10%, many small entrepreneurs will be shaken, especially if strong inflation occurs, many small entrepreneurs will close temporarily and may also go bankrupt.

 

[Kross]

Small businesses are the biggest casualty when it comes to inflation. They can hardly ever produce because they can't buy raw materials.

 

[Starmix]

In light inflation, prices usually rise below 5%, and the economy is hampered for a moment and then recovers easily and runs smoothly. Meanwhile, with medium inflation above 10%, many small entrepreneurs will be shaken, especially if strong inflation occurs, many small entrepreneurs will close temporarily and may also go bankrupt.

Yes, that is right, the business owner near me also selling milk tea closed her business. I asked her the reason she said she could not anymore cope with the high prices of commodities and the ingredients for the milk tea are getting higher every day, I am thankful, that I can manage well my milk tea business.