With a pandemic, we needed to find a new way to deliver our products and services. Inflation is currently deciding which products and services are worth sustaining.
What awakens local business owners You will be asked a lot of topics such as lack of labor to talk to you, rising costs of almost all, interest rates and so on. These directly affect the COVID-19 Relief Government loan.
For the past two years, it has been a roller coaster for small business owners. High inflation is in a position to pay more to run us, so we have to pass that increase on to our customers who are in a pinch.
Statistics Canada reported that Canadians paid 9.7 percent more food in April 2022 compared to the same month last year. Prices for basic items such as fresh fruits have increased by 10%. Meat is in the same price jump range. This has a direct impact on people in the food and beverage industry, already known for their slim margins.
In my case, I always oppose distributors, compromise on more manageable payment terms, and eliminate additional charges that raise prices or lower margins, such as additional charges for distribution gas. I'm negotiating. — Every effort to find a solution ensures that customers don't end up paying more for the same thing. Margins are even smaller because you often choose not to pass all the increases to your customers.
Talking to other entrepreneurs, I found that some people are introducing new services and products that are less expensive but of better quality. rice field. Is an offer to see customers come in and make money.
The pandemic has forced us to shift our focus to new ways of delivering products and services, but inflation determines which products and services are worth sustaining. ..
Labor shortages continue to affect our business. The staff also feels the influence. Candidates are looking for a job near their home because gas prices are rising. This impacts rural businesses such as farms, beds and breakfasts and golf courses. As the pool of employees has shrunk significantly, we need to offer higher wages and additional incentives to bring back workers. Boom: Take more margin points.
People who depended on the COVID-19 loan program and remained in business during the months of forced closure are literally overnight and expensive on these loans. I feel the burden of interest rates. Yes, let's narrow that margin further.
That's a rough idea — for everyone. We all know that there is a limit to how much we can afford, whether consumers or business owners, but we hope that people will continue to support local SMEs during even more difficult times. I sincerely hope.
Karla Briones is a local immigrant entrepreneur and global pet I am the owner of Food Kanata. &Hintonburg; Freshii Westboro; Founder of the Academy of Immigration and Entrepreneurship. and an independent business consultant. Her opinion here is her own. Her column is displayed every two weeks.
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