Why Small Businesses Are Raising Their Prices In 2022

Small businesses are raising their prices in 2022 constantly. It’s reported that 82% of small businesses are being forced to raise their prices in order to simply stay in business. So why are businesses being forced to raise their prices? Let’s take a deeper look. 

You’ve seen it everywhere (even the Dollar Tree), overall prices of doing business are increasing due to inflation and supply chain shortages. The cost of materials is increasing, the cost of living is increasing, shipping is becoming less predictable (and more expensive), even energy prices are increasing. It would be easier to discuss what isn’t increasing than what is at this point.

In response, small business owners are trying to accommodate the changes by raising their prices, cutting back on hiring new employees, discontinuing some of their more costly goods and services, and stopping free shipping promotions with their orders. Here’s what you need to keep in mind when you’re choosing between shopping small or shopping Amazon, small businesses hate raising their prices as much as you hate paying higher prices, but they’re left with no choice if they want to continue making any profit.

So will 2022 be the most stressful year for business yet? 

It’s already proving to be a very overwhelming year for small businesses as they try to do everything they can just to stay afloat and meet customer expectations. Most issues small businesses are facing with inflation, price increases, and supply chain shortages are uncontrollable and unpredictable. Making promises to their customers even more difficult.

Here are some ways businesses and consumers can support each other during these unprecedented times:

For businesses:

+ Work with local suppliers to have more reliable shipping (avoid international suppliers), maybe even do local pick up on specific dates if possible.

+ Communicate unexpected issues to your customers, be clear.

+ Be honest about why you have to increase your prices and notify your customers before they increase. Marketing idea? Consider doing a “last time to shop at these prices” blast to your email list and pop it up on stories too, this way they feel like you’re letting them in on a secret and they can continue to support you.

+ Look for areas where you can cut down on costs or become more cost-efficient… yes that means actually tracking your finances and understanding them.

For consumers:

+Purchase from local and small businesses to keep them running during these difficult times, they appreciate it more than you know.

+If you can’t afford your favorite small businesses’ product or service, support them on social media by engaging with their posts. Saves mean most on the algorithm now but likes, comments, and shares are always appreciated as well.

+Have patience with small businesses, especially if they have to change their products or aren’t able to keep up with customer demands. 

+Expect that small businesses might have to change their prices several times this year, remember, it’s not their fault. This could be a great time for you to live a more minimalist lifestyle.

So why are small businesses raising their prices in 2022? Because they have to. Now it is more important than ever to support small businesses and shop locally.