With the cost of living rising at a great speed, many small businesses are struggling to cope and stay afloat. It may be that they are encountering raising costs but worry that they are not going to be able to pass these on to their customers Often small businesses have to charge more than bigger corporate companies anyway but if they put their prices too high people simply will not buy.
Instead of putting your prices up you should first see if you can reduce your overheads. This will allow you to still retain your profit without having to put your prices up.
Firstly, look at your utility bills such as phones, internet, heating and rent. It may be that you have a large office space or shop which you don’t really need. Moving to a smaller place can save you hundreds each month which will help keep your bottom line healthy.
Next look at your suppliers list, don’t be afraid to shop around a bit to find a better deal. Although you may wish to stay loyal to one supplier, if they are not price competitive then it may be time for a change. Any money you can save on ongoings will help ensure you can continue to trade even during tough times.