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Inflation is on everyone’s mind these days, and with the current state of the country, it doesn’t look like it’s going away anytime soon. With the cost of inflation putting a dent in consumers wallets, how does a small business survive during these times? Here are some tips on how to fight inflation as a small business owner.
Tell customers about price increases
If your product or a manufacturer has a price increase because of material shortage and an increase in labor, it’s good to be upfront with your customer. Also, if you know of future price increases, the customer will appreciate you letting them know so they can plan accordingly.
Cut costs on supplies
Whether it’s toilet paper, coffee, or even plates, it’s easy to cut-down and save when it comes to office supplies. See if you can buy in bulk at Costco or through Staples.
Focus on revenue and productivity growth
Look for fresh ways to bring in more business that won’t cost too much. Utilize social media outlets such as Instagram and Facebook to gain more customers. Think of incentives for your employees, like if they get a certain amount of new customers per week, then they get an award or bonus.
Look for ways you can save on heating and electric for your building
Are those drafty windows and cracks in the wall causing your energy bills to add up little by little each month? Look to see what needs to be sealed and find out if it is something you can handle. Also, powering down computers each night will save you significantly on your electric bill.
Review your company’s finances
It’s wise to have an accountant or trusted fellow business owner go over your finances with you, or at least someone you can trust that will help decipher what you can cut back on.
Renegotiate contracts with suppliers
Look into ways you can save by changing internet or phone providers, or see if there are any discounts in paying early or buying in bulk with some of your vendors.
Keep an eye on the competition
Notice how the competitor’s price compares to yours, and price accordingly. If they are noticeably higher, maybe raise your prices so it’s just under theirs. Also, see if they are offering some sort of incentives to customers that you maybe never thought of doing. In times like these, it’s good to be creative.