As supply chain disruptions continue to spur product shortages, price jumps, and wage increases, business owners must be thinking about inflation as an opportunity to revisit their margins and reinvent their products and/or services. With another Covid-19 surge on our hands, now is not the time to kick back and hope for the best outcomes. Proactivity is key and timing is crucial.
The first question businesses need to answer is whether the price they charge for their product is elastic or in-elastic—is there a correlation between demand and price increases or decreases?
From there, owners can do their homework to stay ahead of the competition and evolve their business, as needed, to continue to meet consumer demands. Because the hard truth is, eventually, a competitor will find a way to deliver a product (or service) that, while a necessity, is cheaper or better and serves the same purpose. The goal? Beat them to it.
Read the full article now to learn the subsequent questions business owners should be asking themselves and real-world examples of offsetting inflation with reinvention.