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Inspiration

Meeting the inflation challenge

he United States has experienced significant services patrons would truly miss and replacing
economic success in the COVID-19 era. Last less popular/nonessential items with others that
year, according to a number of recent studies, provide something new and highly appealing at a
T we saw the largest economic growth year-over- lower price point.
year since 1984, 38 years ago. 2021 also saw a record- • Increase prices incrementally so consumers aren't
breaking number of new businesses open their doors, hit with a big increase all at once, and strive to limit
albeit many of those doors were virtual. price increases to items that are more optional, not
essential.
In the payments sphere, when consumers and merchants
alike looked for alternatives to in-person transactions, • Communicate openly with customers about why
especially those involving cash, payment companies some price increases are necessary.
already had the requisite technology and the know-how, • Develop employee training programs so current
and they seized the day, helping to shepherd in a digital employees can become eligible for promotions to
transactions explosion, which is having a transformative higher-paying positions, and promote from within.
effect on commerce. This can boost morale and help motivated employees
deal with the financial impact of inflation.
Even as the BA.2 COVID variant spreads and no one
knows what its trajectory will be, a can-to, we'll-figure-it- • Negotiate employee discounts for certain goods and
out attitude prevails while we strategize with merchants services. Depending on company size, these could
about how to address pressing challenges such as supply include such things as cell phone plans, fuel or
chain disruption and staffing shortages. But now, another takeout from favorite local restaurants.
shadow lurks in the form of inflation, which is worrying • Do an extra review of business expenses to see if
the mom-and-pop businesses that are the backbone of some can be eliminated.
many a payment company's portfolio. A recent survey
of 1,576 SMB owners conducted by Small Business for What government might do
America's Future revealed that inflation is the top concern We hold diverse opinions regarding what governments
for 60 percent of respondents. should and shouldn't do to manage inflation and other
What SMBs can do critical issues our country and the world face. I'm not going
to suggest specific actions here. I will say, though, that
The good news is there are actions SMB owners can take now is an ideal time for us to contact our local, state and
individually to mitigate the effects inflation has on their federal representatives to provide feedback on solutions
businesses, customers and employees. They can: already planned or underway, as well as share our ideas
• Seek to expand supplier relationships, with an eye for what can be done to help SMBs and consumers thrive
for adding suppliers that can provide comparable despite the inflation challenge.
goods at a lower cost.
• Negotiate prices with current suppliers, and then
lock them in for as long a term as possible.
• Revamp product offerings, retaining items or Kate Gillespie, President and CEO