With rising inflation will you be putting up your prices in January?

This is always a difficult decision, a dilemma between the rising cost of running a business and a household, whilst thinking about what your clients would be prepared to pay. Considering the best outcome in increasing your associate’s hourly rate by what percentage each year can be an additional challenge.

The rose coloured ideology of being your own boss, the decision maker, the flexible work life balance theory when starting out in business is great. The reality soon bites as you grow, taking on more associate team members, more responsibility and more clients when you feel you can’t say ‘no’.

Living in a 24/7 mindset with running a business, constantly thinking about ‘stuff’, even when you are sleeping, can be exhausting!

Most directors in a company take a basic wage made up of dividends from any profits earned.  So relying on forecasts of what client sales are likely to be over the coming 12 months is always a risk with those ‘unknowns’ that do happen.

So, with a potential inflation increase of 4-5% in 2022, will you be putting your prices up in January?