Just as the downturn in the economy is impacting the lives of the majority of private individuals in this country, so is it squeezing small businesses. Most small business owners can tell you they are no stranger to belt tightening and budget cuts. Many prefering to take that avenue before raising pricing, knowing how difficult it is to complete sometimes. Unfortunately, there are situations in which you have no other alternative than to raise your prices.
A recent survey by the Small Business Research Board (SBRB) found that of the 1,000 small business owners surveyed, over 65% had raised their prices. Another 23% were adding or increasing shipping/handling fees and 21% were working to reduce other operating costs. Renegotiating customer pricing agreements was another solution, as was negotiating long-term fixed cost supply contracts and reducing lead times.
As I stated earlier, I believe small business owners are quite creative and savvy when it comes to finding creative solutions in order to stay competitive during economic hard times. So to the readers of this blog, feel free to share with others what solutions you are implementing to stay competitive.