Via BizEngine, we can deliver a CNNMoney report that small businesses the nation over are raising their prices. It’s something that has continued throughout the year since we first posted this report.
This is good news in a lot of ways, reflecting on the way the economy has improved. Without an uptick in spending from consumers, small businesses would be raising prices only as a last resort. If the slow recovery can continue, we’ll all be feeling a lot better about paying a little bit more.
Unfortunately, it also reflects the way expenses are rising for small businesses in the U.S. With everything from gas to food going up, some businesses are being forced to raise prices just to stay afloat. Hopefully, that will change in the months ahead, but gasoline prices in particular show no signs of coming back down to earth and it is worrying owners of small businesses:
Q Kindness Café is one of those businesses. With the cost of everything from coffee to linen service to meat steadily rising, the St. Paul, Minn., diner was forced to raise prices on its menu.
“Business is definitely still soft. But we’ve gotten the screws turned on us from our suppliers,” said owner Lisa Metwaly. “We had no other choice. I just hope we don’t chase any more customers away.”
What are your thoughts on raising prices in 2011?
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