The rising cost of things has been a trending topic of late, ranting everywhere, especially from the consumers of these goods, but do you know that we businessmen also face our challenges as no business owner likes a reduced profit, for a business to keep running smoothly, there is a high need to maintain stable or more profits and inflation tends to go against the quest for a stable income and business owners have no choice than to increase the price attached to their goods and services, after all, the cost needed to manufacture the goods or surrounding a service also experienced an increase.

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It's been a challenge lately adjusting my clients to the new pricing of the service I offer as a fashion designer, the cost of buying sewing supplies used in making the dresses down to the fabric needed has experienced a rise, and when my client starts complaining, instead of just leaving it at just "Price has changed" which most of the time gets clients upset due to their lack of understanding of what induced the price change, from my experience, overcoming challenges during the inflation, there is need for business owners to have strategic plans, also have some level of financial management skills and practical ways to help them adjust to the change so as not have a negative impact on the business growth. So in this post today, I will be sharing with us practical steps we can follow to manage our business during inflation.

Cost Management

If you frequent the market to get supplies just like I do, you will notice fluctuations in prices are almost a constant thing now, and it's mostly on the high side, so it is important for you as a business owner to stay updated with the current price, also learn to negotiate with your suppliers to get better deals by making sure to compare prices, this has become more of a habit for me, even though I have a regular supplier, I still make sure to confirm the price from other sources before purchasing, as just sticking to one might deny you of knowing when it becomes lesser as it can further help in reducing overall cost.

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Customer Relationships

One value that has held my old-time customers in place irrespective of the high cost of things now is the loyalty and trust that I have built overtime, not disappointing a customer and giving them full value for what they pay for, this is the same reason branded goods sells more even at a high price compared to the unbranded because of their reliability over years. So when I tell my client, that the service they require would be at an increased cost, **some of them understands and have no problem because they know that their satisfaction is guaranteed

And how is a client's utmost satisfaction met? By Seeking feedback from them to understand their changing needs and preferences in response to economic conditions. For instance, a client of mine wants a particular style, but from the price of the appliques used in making the dress, her budget won't be enough for the overall cost, so I explained that to her and made a recommendation of getting another applique which is at a lesser price, same dress, different applique, reduced cost and we struck a deal.

Pricing Strategy

Adjusting your price gradually can be a better option than a sudden spike, you might suffer a low profit during this adjustment period, but don't worry, it's just to gradually let your customers adjust to the new pricing, as a sudden spike can get them discouraged from patronizing you, but while this gradual increment is ongoing, make them aware of the increment in costing which is the causing the price increase, sometimes I even go ahead to list the materials used in making a dress to them attaching their current prices, to make them understand better, being transparent often makes them understand you better.

Efficiency Improvements

Wastage during inflation does more harm than good, I once had an assistant who didn't know how to efficiently manage fabrics, she cost me a lot of money by the time I realized, every business owner in whatever you are into should master the art of managing and still deliver quality, when you manage you produce more which equals more profit, also investing in machines that helps makes your work faster and improve productivity is essential as well.

Cash Flow Management

When you monitor your cash flow, it is easier for you to know when you are tilting towards the red/danger zone and helps you quickly make the readjustment needed, so ensure to monitor your cash flow, costing in relation to income, if the need arises for a slight price increase, do that. Consider renegotiating payment terms with vendors and clients to optimize cash flow.

Marketing Strategies**

The advancement in technology in terms of advertisement has made it easier for us to reach a wider range of audience and clients, so consider investing in targeted marketing, making your product and services attractive, you will discover that there are even better clients out there that will appreciate and pay more for your services, I use to sew for just those around me and never had enough income even though I worked tirelessly day and night, it took me taking my business to the online world, also studying and learning new tips that brought upgrade that I knew I had just been wasting away all that long years, it opened my eyes to diverse opportunities and good clients that appreciated my work and paid very well for my services and inflation or not my business stay strong through the storm. All these were achievable when I leveraged digital marketing channels.

Conclusion

Keep in mind that resilience and adaptability play crucial roles in seeing us through economic uncertainties. Taking proactive steps to manage your business by following the above practical steps and staying aware of market shifts positions you to successfully overcome challenges during the inflation, and you continue to experience business growth.

Thank you for reading