Page 11 - ARUBA TODAY JAN 17 2022

A11
business Monday 17 January 2022
Rising costs add to pandemic pain for small businesses

Associated Press Boncompagni has raised
(AP) — In just two weeks, prices about 5% and start-
the cost of pecans for the ed to charge a flat ship-
pies at Peggy Jean’s Pies ping rate depending on
in Columbia, Missouri, has item size. While he may
surged nearly 40%, perplex- lower prices in the future,
ing co-owner Rebecca Mill- the shipping charge is here
er and adding to the cost to stay, he said.
of doing business. Miller will “There is simply no way
soon have to bump up the most online businesses can
price of her Southern Pe- keep shipping pallets and
can, Chocolate Bourbon less-than-truckload ship-
Pecan, and German Choc- ments without having to
olate pies by $2 to $24. charge at least a bit for
While pecans have risen them,” he said.
the most, Miller is seeing Some businesses are using
price increases across the channels they developed
board, from blackberries during the pandemic to
to condensed milk and communicate with cus-
eggs. She consults with tomers about why prices
three food brokers weekly are increasing, in the hopes
to source the lowest prices they’ll be patient.
for ingredients. But she still Kialee Mulumba, founder
needs to charge more for of beauty brand Jakeala
the nut pies. in Newport News, Virginia,
“We can’t absorb that cost has had to raise prices of
and still meet wage de- her beauty products by $1
mands, increased cost of to $5. Her container prices
goods in our tins and boxes, have doubled — with one
and afford to live as a fam- that used to be 50 cents
ily,” she said. now costing $1. Prices for
Sharply higher costs are yet Deena Jalal, owner of plant-based ice cream chain FoMu, works behind the counter in her shop organic olive oil butters
another challenge thrown on Tremont Street, Friday, Jan 14, 2022, in Boston. (AP Photo/Michael Dwyer) and conditioners have all
at business owners by the risen 5% to 10% and ship-
global pandemic. The un- the long run. two years, I really do think the punches, but definite- ping from China is up 5%.
predictability of shipping, “We put out new fires every we’ll see a lot of business- ly feel like we are being She also cut her four em-
labor and the coronavirus single day and have had es — ourselves included — pushed and pulled in too ployees’ hours from full time
itself have created an envi- to reassess the way we do struggle to keep their doors many directions,” she said. to part time.
ronment where owners are business to cater to new open.” Some online vendors are Mulumba emailed custom-
often left guessing about behaviors,” said Deena Elizabeth Benedict, owner eliminating free shipping ers to be transparent and
when products might arrive Jalal, owner of plant-based of interior design firm Eliza- to combat costs. Gianluca let them know prices were
and how much they’ll cost. ice cream chain FoMu and beth Home Decor & Design Boncompagni, owner of e- going up due to the rising
The Labor Department said co-founder of wholesaler in Chestnut Hill, Massachu- commerce site Off Road cost of supplies. But she has
Thursday that prices at the Sweet Tree Creamery in setts, said prices have risen Tents, which sells off-road noticed a slight decrease
wholesale level rose a re- Boston. 7% to 30% for all the prod- and overlanding equip- in sales.
cord 9.7% in December For her FoMu shops, the ucts she buys. She pays ment, saw logistics costs “I just hope the consumers
from a year ago. cost of business overall rose shipping surcharges on top quadruple. In October support the small business-
“There’s a tremendous about 15% in 2021 com- of that. 2020, he paid $6,300 for es they like — this is the time
amount of not just risk — risk pared with 2020. She has “Most of these (increases) a 40-foot container com- to support small business,”
you can calculate — but raised prices about 10% come with less than a two- ing from China. By Octo- she said. “Even if you can’t
uncertainty. We just don’t but taken other measures, week notice,” she said. ber 2021, he was paying purchase, you can share
know what’s going to hap- too: shifting to more deliv- “We cannot guarantee $26,000 for the same sized posts, like, or comment —
pen.” said Ray Keating, ery and cutting flavors like any quotes that go out container. that would really go far.”q
chief economist with the avocado ice cream, which and have had to adjust our
Small Business & Entrepre- became too expensive to contract as well as all of our
neurship Council. “Con- make as avocado prices language on our proposals
sumer demand is there, rose. to reflect these variable
but there are just enormous “No business can sustain conditions.”
supply chain constraints. All the rapid increase in ex- To deal with rising costs
of this is feeding into price penses that we have seen and overseas shipping de-
increases.” in the last year,” Jalal said. lays, Benedict significantly
In response, owners are “You used to be able to changed her vendor list,
raising prices, cutting staff work really hard and see and now shops only with
hours, dropping some progress. Now you work re- U.S. brands that make
goods and services and ally hard just to try to stay products in the U.S. And she
nixing free shipping in a afloat.” added services like e-com-
delicate balancing act. But Jalal is apprehensive about merce and virtual design.
with low visibility into how the long-term prospects for But she’s still facing longer
long the higher inflation the small business commu- timelines for her projects
will last, some owners are nity if inflation doesn’t calm and is not taking on new Deena Jalal, owner of plant-based ice cream chain FoMu, pos-
increasingly worried about down soon. “If we have to clients until things stabilize. es behind the counter in her shop on Tremont Street, Friday, Jan
keeping their doors open in work this puzzle for another “We continue to pivot with 14, 2022, in Boston. (AP Photo/Michael Dwyer)