The Costs of Doing Business

Right now, it feels like all costs are trending in the same direction: up. Uncertainty caused by the pandemic, inflation, war in Europe, fierce competition for talent—each of these is placing expensive pressure on businesses.

It can seem overwhelming, which is why I appreciated this real-talk, grounded perspective from Jack Stack, CEO of SRC Holdings Corp., and journalist Darren Dahl.

Just one section that struck me:
“One of the hardest things you can do in business is increase your prices. If you've ever done it, you know what we're talking about. It's the most uncomfortable discussion you can ever have with a customer—especially one you may have been working with for years. Nobody likes paying more for something if they can get it for less, right?

But with the kind of inflationary pressures we're all dealing with right now, you can't afford not to raise your prices. This is the furthest thing from profiteering or trying to gouge customers. It's just math. Our costs of doing business are going up, and we need to adjust to that. Otherwise, we'll find that we're working for free—or worse.”

Stack and Dahl dive into the tricky question of price adjustments and why “more and more companies are shifting their business away from low-cost suppliers to companies that have a strong reputation for integrity.” Read the full article at Great Game of Business.