📶Growth Rising costs.. never end?

Anyone else here struggling with rising costs? It's kicking our ass in every direction at the moment.

The last time we ordered packaging supplies it cost us 0.0010; it's now 0.10 in the most recent cost we had yup that's right, 9900% increase (i think)

I've managed to source them from China (thankfully), but now the delivery cost is 20% HIGHER than the actual product and now lead times on the water have increased as well.

I literally just had an email after buying 60,000 labels that as of 1st July there will be a 15% increase in costs.

Everything seems to be going up and there seems to be ZERO slowdown. It's getting a bit ridiculous - we have always been able to absorb the costs and get on with things but the rate of increase seems crazy to pass on costs every 5min to customers...


I figure things are going to get much worse before they get better and like everything in life and business this will become the new norm as prices never go back down

Yeah
It is getting crazy to be honest
And I also noticed the quality of the products decreased

Yes. My exact problem, but in microscale. Energy costs went up so I moved to Sri Lanka. While in Sri Lanka still my rent went up almost x2 (but also nicer house so fair enough) on the 2nd year. Then after 2 years I got visa problem and had to leave for a country where rent I'm paying is *higher* than what I paid in my home country . Now I also have flights costs and no way in hell I'll be able to get short term rent to the level of long term rental agreement pricing. So... Yes. Tbf at least I get quality of life increase each time instead of everything staying the same just more expensive. So I'm very grateful for that. But I wish my costs wouldn't increase every 10s. First time the move really helped me, for these 2 years I was fine. But now I just need to earn more, no go. No way in hell I'd be able to pay all that just by selling some old stuff.

The big inflation has not arrived yet.
Also the econemy is changing from global econemy back to local econemy.
China already in the transition from an export focused econemy to a domestic focused econemy.
UK.....going to be in a few years the cheapest labor country in europe with the pound losing arround 60-80% of its value

Commodity Super Cycle coming

LegacyBuilder248 said:

The big inflation has not arrived yet.

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I agree to this. The superinflated SP500 is still pumped up, let's wait and see where the bubble pops. Either AI (most def) combined with some stupid macro (more or less staged) events. I bet my money on electricity / internet blackouts starting more and more frequently. And then the prices will explode further. The covid shifted the gears like very aggressive, something happened in social conscience at that point. The people realized that the norm changed, the govs are cold, ruthless and after you if they are given the power (which they already have) and all people are for themselves. That is triggering all kind of social - macro - economic events. Or I am completely paranoic and just blabbing around, which might be true.

MR.Spuf said:

I agree to this. The superinflated SP500 is still pumped up, let's wait and see where the bubble pops. Either AI (most def) combined with some stupid macro (more or less staged) events. I bet my money on electricity / internet blackouts starting more and more frequently. And then the prices will explode further. The covid shifted the gears like very aggressive, something happened in social conscience at that point. The people realized that the norm changed, the govs are cold, ruthless and after you if they are given the power (which they already have) and all people are for themselves. That is triggering all kind of social - macro - economic events. Or I am completely paranoic and just blabbing around, which might be true.

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Are they pumped up or are they already pricing in the decline of the USD value when BRICS implement their own monetary system and kick out the USD.

Rising costs for opening and business are getting overwhelming for me. Each month I’m not sure how I’m going to handle more increases but I keep finding a way. Right now these always something I can cut back on but then how long can I keep cutting back on stuff?

shattered world said:

Rising costs for opening and business are getting overwhelming for me. Each month I’m not sure how I’m going to handle more increases but I keep finding a way. Right now these always something I can cut back on but then how long can I keep cutting back on stuff?

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This is the issue I’m facing too.

shattered world said:

Rising costs for opening and business are getting overwhelming for me. Each month I’m not sure how I’m going to handle more increases but I keep finding a way. Right now these always something I can cut back on but then how long can I keep cutting back on stuff?

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You can't keep cutting back.

You need to increase what you charge.

Do people here increase rates to follow inflation and experience etc or not?

We passed on postal increases every 12 months not so much recently we just increased the min order spend to get free delivery instead.or

Things like plastic costs are added almost exactly as when we been hit with rising costs

t2van said:

You can't keep cutting back.

You need to increase what you charge.

Do people here increase rates to follow inflation and experience etc or not?

We passed on postal increases every 12 months not so much recently we just increased the min order spend to get free delivery instead.or

Things like plastic costs are added almost exactly as when we been hit with rising costs

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I did that but putting costs back on the consumer only works for a time.

What happens when the consumer is struggling with rising costs and decides to cut back on your non-essential service? That’s what’s happening right now in the restaurant industry. People are seeing it’s too expensive to eat out and are opting to cook.

Your target market is only going to put up with rising costs for so long before they switch to a competitor in another country or quit buying what you sell outright.

shattered world said:

I did that but putting costs back on the consumer only works for a time.

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No it always works.

If you don't pass on costs you go under as your over heads are higher than your profit.

shattered world said:

What happens when the consumer is struggling with rising costs and decides to cut back on your non-essential service? That’s what’s happening right now in the restaurant industry. People are seeing it’s too expensive to eat out and are opting to cook.

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Nah

People are still eating out.

If someone can't afford to eat out they won't be in a position to hire someone anyway.

shattered world said:

Your target market is only going to put up with rising costs for so long before they switch to a competitor in another country or quit buying what you sell outright.

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But those race to the bottom competitors on price never last.

They don't make enough money to scale they can't stick around.

Passing on costs isn't nice but in a world when costs are going up daily (in some cases) for businesses.

Passing it on is the reality.

You see it in the shops, restaurants and so on..

I don't understand as a business owner or a skilled person why if all your costs go up why you don't pass them on...

t2van said:

No it always works.

If you don't pass on costs you go under as your over heads are higher than your profit.


Nah

People are still eating out.

If someone can't afford to eat out they won't be in a position to hire someone anyway.


But those race to the bottom competitors on price never last.

They don't make enough money to scale they can't stick around.

Passing on costs isn't nice but in a world when costs are going up daily (in some cases) for businesses.

Passing it on is the reality.

You see it in the shops, restaurants and so on..

I don't understand as a business owner or a skilled person why if all your costs go up why you don't pass them on...

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We all should do that but apparently nerds forget they're running a small business and are not applying for employment. My main concern with this business model / niche. Honestly it's such a race to the bottom sometimes up to the point when some people on sales calls try to scream me into working for lower rates than I offer - that's how entitled and used to cheap services these clients are. I'm trying my best (mostly telling people to fuck off lol) but they're so used to other agencies that price low, or do various things for free as a bonus, or forget to charge sometimes. Like, you know, if you don't agree to some things then these things don't happen to you, but clients are very entitled, most the time I don't have motivation to continue with this business model even. Majority of my time is spent on explaining that I won't work for free or for pennies... Why I even bother lol. Maybe lead quality issue too but I saw agencies kiss big companies' asses all the same or even more. Like, there's tons of people that are dying to work as an agency and they'll do everything, even work for free lol. I don't think these people realize how much they're destroying the market and their own profession.