Some costs,
due to climate change,
war, government changes,
other factors,
have increased by 100%
or more
compared to last year’s costs.
That level of increase,
if not offset,
will decimate the profits
of many businesses.
What are the possible offsets?
Passing the cost increase
along to the customer
i.e. increasing our prices
by at least
the same amount.
Or
having a deal
with our suppliers
that lock in prices
for a certain length
of time.
Or
being able to switch
to a lower cost input
or a lower cost supplier.
And there are other offsets.
Ensure you have a plan
for increasing supply costs.