Small Business changes imposed by the coronavirus have been difficult to endure to say the least. Everything that we knew as “normal” went away and now, we must face the transformation of today’s habits and create a new “normal”. The most significant consequence of these changes to your business……the cost of running it is on the rise. This will leave less of your income available to you. In other words, you are making less money.
On top of all of that, the economy has experienced inflation at a rate of approximately 5.4% over the past few months, now it is up to 6.2%. Those rates are higher than what any of us have experienced in over 30 years. The causes are a combination of things happening all at once: such as, supplier shortages, labor shortages, Federal reserve doubling up the money supply, stimulus payments, vaccine rollouts, etc. Basically…consumers and investors have the cash to spend; however, not as many goods and services out there to spend it on. Just recently, Mondelez who operates the Chips Ahoy/Ritz brand announced a 7% increase in 2022. Meanwhile, Kraft has already raised prices of their products by 5%. Similarly, we all have witnessed gas prices as of late go up by more than $1 in 2021. Finally, Dollar Tree has just made a permanent change to make their price point $1.25 by next year. (I wonder if they will rebrand their name to Dollar and a Quarter Tree?)