Tuesday, May 8, 2007

Working with Inflation

Today I got a very interesting e-mail from my wife who happens to have the CEO (and production) role of our company:

Friday 6pm the boxes went up in price; Monday 4pm, the plastic bags went up in price (boxes and bags 21%); Tuesday 1pm, the chocolate went up (10%); Tuesday margarine went up in price as well (10%).

These are increases that are on top of what was increased a couple of weeks ago. Yep, it´s not every month anymore it´s within a couple of weeks.

Meanwhile I have clients who demand that they be given 30 days notice for price increases.

What does this mean to me? I will have to spend yet more of my time in meetings explaining why our prices have to go up. I have been preparing the little businesses by telling them that I can no longer give them any forward notice at all regarding price increases and they took it very well. I imagine that I am not the only one telling them this.

I remember when I used to increase my prices once a year and I would get flack from them but not this time. Now I get flack from the big clients and they also require a big investment of my time. At least my business Spanish is getting polished with all of these meetings.

You can be the judge of that though tonight when you listen to the interview at 8pm on 94.7 Radio Palermo.
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