I mentioned pricing earlier in the week — Nearly 70% of small businesses plan to raise their average selling prices in the next three months, a study from the National Federation of Independent Businesses (NFIB) found.
Quoting Channel E2E, The majority of small businesses (62%) said inflation was having a substantial impact on their business, while about a third (31%) reported it had a moderate impact. Only 6% of owners report it having a mild impact, according to the survey. When it comes to specific costs, over three-quarters (77%) of small employers reported that inventory, supplies and materials were a substantial contributor to higher costs, while 18% reported the impact was moderate. Over three-quarters (77%) of small employers reported that rising prices for fuel (gasoline, diesel, fuel oil, etc.) is a substantial contributor to higher costs. Labor, rent and utilities contribute to cost pressures for many small employers, according to the report, but to a lesser degree than supplies/inventory and fuel.
Why do we care?
Even if this isn’t your IT services business… it’s your customer’s reality. Too often hear about how much opportunity there is – blindly ignoring customer realities. The two statements CAN be true at the same time. There is a lot of opportunity out there, AND there are a lot of pressures on customers.
Those who get the balance right and understand both will be the real winners – and one way to do that is to address any concerns you can with customers.
