As small businesses raise prices, some customers push back
By MAE ANDERSON AP Business Writer
NEW YORK (AP) — Inflation isn't only costing small businesses money.
It's costing them customers as well. For much of the pandemic, small business customers were largely tolerant of price increases and kept on spending. Now, owners are seeing some pushback.
But with inflation close to a 40-year-high, there's not much small businesses can do.
Sixty-five percent have raised prices to offset higher costs, according to a Goldman Sachs survey.
And 38% say they've seen a decline in customer demand due to price increases.
With consumers forced to spend more for food and gasoline, businesses that sell non-essential goods or services are especially feeling the pinch.