Inflation Proofing Your BusinessMinta

Inflation Proofing Your Business - Part IV

It may seem obvious when addressing inflation proofing your business, but when expenses increase due to inflation, they will negatively impact your net profit unless you increase revenue.

In my experience, small businesses are more reluctant to implement price increases than most larger businesses. There is certainly reason for concern, but price increases are usually less traumatic than most realize.

Even if you lose some customers, they are usually the price sensitive ones who you are most likely to lose to competitors someday anyway. 

Proverbs 27:23 teaches, "Be sure you know the condition of your flocks, give careful attention to your herds; for riches do not endure forever."

When inflation starts to impact your bottom line, study your pricing carefully. But at some point, you may have to increase prices.

Questions for Reflection:  

• Why are some business owners reluctant to raise prices?   
• Can you think of a time one of your favorite businesses raised its prices? What was your reaction?  
• What’s the difference between price gouging and raising prices in a conservative, thoughtful manner?  
• Are there areas where you could increase your pricing to combat inflation? What’s stopping you from doing so?