Some small businesses raising prices due to inflation
MONTGOMERY, Ala. (WSFA) - Close to 60% of small business owners across the country are absorbing inflation costs by raising their prices, according to the most recent study from the National Federation of Independent Businesses. The trend is the same in Alabama.
Keiauna White owns The BeYOUtiful Boutiques in downtown Montgomery.
“I think that’s just affecting everyone,” said White. “I know it is. I went to a restaurant the other day and they didn’t have ketchup.”
Different small businesses see the effects of inflation in their own ways. White says her shipping and handling rose as much as $10 per product.
“I’ve ordered some things last year that are just coming now, which, that trickles down into the day-to-day cash flow, that trickles down into my customers expecting an item and it not being on time,” she said.
Victor Wyatt manages Tower Taproom and says the cost of beer hasn’t changed.
“They let me know all my price changes up front,” said Wyatt. “And I can work out my pricing so that it’s beneficial for us, but it’s also beneficial for the guests who come in.”
On the back end, they’re fighting higher prices for things such as chicken.
“The case price has gone from $80 to $160,” said Wyatt. “And it’s trickling back down.”
“They see bank interest rates going up. We’re certainly expecting another rate increase this week,” said Rosemary Elebash, the state director for the National Federation of Independent Business.
And that affects how businesses expand or buy new products. However, Wyatt and White credit their continued business to the community.
“And we’re honest and up front with each other. I let them know ‘look, I picked this out, it’s fabulous, but I don’t know when it’s coming,’” said White.
“You have people who come through Montgomery,” said Wyatt. “Montgomery’s like that central stopping point for people who are coming from the north going to the beach.”
Wyatt says they’ve been able to figure out staffing at Tower Taproom, so their other business, Lower Lounge, can reopen possibly by next week.
Copyright 2022 WSFA 12 News. All rights reserved.