3.25.22
How Businesses Are Dealing with Rising Costs
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Do you have business banking questions? Contact our knowledgeable commercial loan officers.
Learn more.5 strategies for staying profitable in the face of inflation.
Geopolitical conflict is just the latest factor driving up the cost of doing business. Let’s consider five strategies some businesses are using to remain profitable in an economy suffering from inflation.
Change the product
Switching to lower-cost components or ingredients is one way businesses are coping with the rising costs of materials. Another is by reducing product size and holding the price at current levels.
Reduce energy costs
Limiting energy costs is also a budget-wise move. Among the ways businesses are boosting energy efficiency are:
- Programmable thermostats
- Setting the temperatures to a few degrees lower in cold weather and a few degrees higher in warm weather
- Installing LED lights
- Insulating and eliminating air leaks
Limit travel
Just as we turn the corner on COVID-19 and live events such trade shows and concerts are once again picking up momentum, rising fuel prices are driving up travel costs. Continuing to meet virtually through programs such as Zoom and booking air travel in advance will help stretch travel budgets.
Buying materials in bulk
Fuel costs hit record highs this month affecting the cost of moving goods from one place to another. Minimize freight costs by buying materials in bulk to reduce the number of deliveries. Buying in bulk can also open opportunities for volume discounts.
Pass costs along
Faced with higher costs for everything from raw materials and labor to packaging and shipping, many businesses pass the increases, in whole or part, along to customers.
Explore our blog for some tips on communicating price increases to customers.
Do you have business banking questions? Contact our knowledgeable commercial loan officers online or call 800-991-2221. We’re also available to help in person at your local office.
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Consumers business services
Do you have business banking questions? Contact our knowledgeable commercial loan officers.
Learn more.