It's clear to me that Geoffrey James, the author of the Inc article "No, This Is Not a Good Time to Raise Your Prices" has never actually owned a business other than the solo consulting business he references in his article. In CA many businesses run on very thin margins due to competition and extreme regulation. To suggest that a restaurant owner shouldn't raise his prices when his costs have skyrocketed (labor, food supplies AND materials) is a reflection of ignorance rather than business savvy. What about a construction company whose cost of lumber quintupled or a machine shop whose price of raw materials tripled? Have they "already screwed up" as the author claims? If his premise is correct that ALL businesses should have margins so large they never have to raise prices due to increased costs, then we should never see inflation, right? In fact, if you take his logic to it's conclusion, there should NEVER be any increase in ANY costs or prices. What, are we to chalk up all increased costs to poor business practices or corporate greed? While it's true that some businesses could be more streamlined and have more profit margin, this article just doesn't make sense or reflect reality.
It's clear to me that Geoffrey James, the author of the Inc article "No, This Is Not a Good Time to Raise Your Prices" has never actually owned a business other than the solo consulting business he references in his article. In CA many businesses run on very thin margins due to competition and extreme regulation. To suggest that a restaurant owner shouldn't raise his prices when his costs have skyrocketed (labor, food supplies AND materials) is a reflection of ignorance rather than business savvy. What about a construction company whose cost of lumber quintupled or a machine shop whose price of raw materials tripled? Have they "already screwed up" as the author claims? If his premise is correct that ALL businesses should have margins so large they never have to raise prices due to increased costs, then we should never see inflation, right? In fact, if you take his logic to it's conclusion, there should NEVER be any increase in ANY costs or prices. What, are we to chalk up all increased costs to poor business practices or corporate greed? While it's true that some businesses could be more streamlined and have more profit margin, this article just doesn't make sense or reflect reality.