July 28, 2021

CANMORE, ALBERTA – A recent Canadian business headline; “Inflation rate dips to 3.1% as shelter and transport costs rise”; doesn’t seem worrying, does it?

I mean, sure, it’s higher than Canada’s (and the US’s) central bank’s stated target of 2% but it’s dropping, right? So no worries …..

But then, embedded deeper in the article is this sub headline: “Higher prices are coming”.

So, which is it?

Lower prices or higher prices?

For those us who lived through the inflationary 70s and early 80s, with interest rates around 20%, we understand the danger of the latter. And anyone with rudimentary economics knows the result of uncontrolled government spending – (which is continuing unabated). Especially, when said spending is being funded by the central banks, via their purchases of government issued debt.

Why is this important to you and your business?

Any and all increased costs to you affect your profit margins directly and immediately. If you do not have systems to both measure your costs regularly and consistently; and to evaluate and increase your prices – your profits will be destroyed along with your business.

But if you raise prices you will lose customers – you say?

If all you have differentiating yourself from your competitors is price – then, yes, you will. Furthermore, even without inflation, if you haven’t created any differentiation from your competitors, you are doomed anyway. Worst thing you can do is be compared with others on price.

Proper pricing and ensuring profitability of companies has been an ongoing theme this month in several events I’ve been invited to speak at. It’s also a subject we handle frequently with our coaching clients every week.

You’re Invited….

If you’d like to see what these are all about, you’re invited to join us this afternoon, at 2:00 pm Mountain. Bring any business question you have, price related or not.

Register here: https://attendee.gotowebinar.com/register/676468347926070030

Hope to see you there.

To your health and success

- Hugh
The “Profit Accelerator” Expert
HughTafel.com

P.S. Have a business challenge or question? Join our members this afternoon and ask us live. Here’s the link: https://attendee.gotowebinar.com/register/676468347926070030