Here's Why Your Prices Need to Increase Due to Inflation?

By Matthew Elling
Co-Founder and Consultant at Line of Credit Depot
November 1, 2022

Recently the federal reserve lowered it’s growth forecast and then raised it’s inflation expectations for 2022. The central bank also sees potential for seven rate hikes this year.

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In 2021 inflation was at the highest it has been in four decades: According to the Consumer Price Index about 7% or around 5.8% according to the Personal Consumption Expenditures index. As 2021 rolled around economists hoped and predicted that we’d be able to get inflation back under control in 2022. 

Now what does this mean for Main Street? This means that inventory and supplies are more expensive. As a business owner you should be seeing the increasing costs of everything. With the increase in cost of goods and general operational costs means one thing - You must raise prices now! Your business needs to pass these cost increases onto the customers. 

Consumers now have to be accustomed to increases from everything to food an energy, now why would your goods or services be any different? You might be saying “if I raise prices, my customers won't be happy” but with this if you don't increase prices, then simply you will not have a business anymore.

Now we don’t know the motivation behind buyers completely. Each customer possess different needs and wants. Some may not even care that your prices have raised if they love your business.

To avoid the inflation storm, look into a line of credit. To see the qualification requirements, download this document.

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