Small business owners Stephanie Coco and Katelyn Swaffer talk about how inflation is impacting their businesses on “The Bottom Line.”
Some small business owners say major macroeconomic changes are making them more pessimistic than ever about the future of their companies.
“The price increases are out of this world right now, and I can’t afford to raise them any further,” Stephanie Coco, owner of Steph’s Creativity Corner, said Monday on “The Bottom Line.” Told.
Katrin Swaffer, owner of Just Baked Bakery & Deli, said, “Our cost of goods has increased by 20 to 40 percent, depending on the product you buy, and our customers aren’t really following that trend.” added. “They’re not going to pay 20 to 40 percent higher rates now than they did four years ago.”
Daily cost increases and seemingly relentless inflation have left these business owners struggling to cover their costs, making this year one of the “most difficult” years to run.
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Their concerns are reflected in the National Federation of Independent Business’ (NFIB) recent Small Business Optimism Index, which fell 0.9 points in March to 88.5, its lowest reading since December 2012. , for 27 consecutive months. The index is below the 50-year average of 98.
Small business owners Stephanie Coco and Katelyn Swaffer join “The Bottom Line” to discuss why this is one of the “toughest” times for the industry. (Fox News)
A quarter of small business owners say inflation is the most important issue in running their business due to rising input costs and labor costs, up 2 points from February and 1 point from 24% a year ago. did.
“I have a very good relationship with my customers, and I feel that if I continue to raise prices, they will look elsewhere and choose easy solutions like Amazon, Walmart, and Target.” said Coco.
“So we need some relief in this area so that we don’t have to keep raising our prices as a small business, and we’re the only toy store on Staten Island,” she continued.
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“I don’t think this economy that we’re in is very good for small businesses and it’s not very good for local support,” Swaffer interjected. It’s cheaper than selling cakes. ”
The percentage of owners who said they had raised their average sales price due to inflation concerns rose 7 percentage points from February to a seasonally adjusted net 28%. The net percentage of small business owners who said their real sales would increase further decreased by 8 points from February, to a net negative 18%.
Coco, who is now in her ninth year as owner-manager, argued that she needs to use her creativity as an artist more than ever to alleviate inflationary pressures.
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“I add more personalization and offer free gift wrapping to bring in customers and make them want to come to me instead of the big box stores, which are much more of a hit,” she explained. .
“It’s difficult for small businesses because people want it right away, and as a small business, it’s just my mom and me, and my dad helps out from time to time,” Swaffer added to the discussion. “And we also have a deli, so we can’t serve cakes or whatever people want in five hours.”
FOX Business’ Eric Revell contributed to this report.
