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‘Those days are over’: These business owners say they can’t raise prices even if they wanted to
Small businesses face doubled raw-material costs and rising fuel surcharges yet avoid price hikes by cutting margins and staff, industry leaders say.
- Facing weak consumer demand, the owner of Paloma plans to absorb rising fuel surcharges instead of passing them to shoppers, citing customers' limited financial cushion.
- Last year, tariffs and wartime commodity swings increased input costs; carbide-tool prices more than doubled, says owner of 3D Design and Manufacturing.
- Wholesalers and manufacturers face higher costs and may add surcharges, while Kareem Miller, owner of Strong Pact Trucking, says operators receive no fuel surcharge revenue despite diesel at $4.85 a gallon.
- Faced with rising costs, some firms are shifting to local and regional suppliers despite higher ingredient costs, while small-business owners accept shrinking margins or make cutbacks to avoid price hikes.
- On Thursday, Roach warned 'It'll really get people's eyeballs popping' if costs pass $5, as half of Paloma's stock is imported and exposed to port and UPS shocks.
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12 Articles
12 Articles
By David Goldman, CNN. Looking through his store window, across the street and just to the right, Mike Roach—co-owner of Paloma Clothing—spots one of the most expensive gas stations in Portland, Oregon. His customers can see the price too: $4.85 per gallon (3.78 liters). “People’s eyes are going to pop out of their heads when the price goes over $5,” Roach said. Consumers are fed up, and raising prices is not an option for American retailers. So…
·Panama City, United States
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Coverage Details
Total News Sources12
Leaning Left1Leaning Right1Center10Last UpdatedBias Distribution84% Center
Bias Distribution
- 84% of the sources are Center
84% Center
C 84%
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