During this first half of 2022, inflation and the fear of its increase has been an ever-present force that doesn’t seem to have a foreseeable end in the immediate future. As a result, it would not be beneficial for a company to go unchanged when going through this national financial adjustment. Wages, gas prices, and commodities all strain on companies and their employees when the demand for money continues to increase. The universally default response to this crisis is to simply raise prices. Inflating of outside and inside resources diminishes the amount of profit during a transaction, therefore by increasing the company’s prices one can compensate for the loss.
Inflating one’s own prices, however, should not always be in congruence to the national inflation averages. Some products and industries can be negatively affected if prices exceed their willingness to purchase, while others will be unaffected by necessity. Gasoline and oil are examples of these resources that require purchasing from businesses and the public alike. These price increases affect not only the products themselves, but the labor it takes to put those products in the shops where they are sold. Increasing the prices too much of unnecessary good like gourmet burgers, luxury cleaning, and computer repair will not only decrease the amount of consumers, but potentially even lose reoccurring customers to a cheaper, local provider.