Karl Townsend wrote:
I'm curious, how do you think a small business should do it?

My costs are up SHARPLY. I feel if I just raise prices 25% my
customers will bolt. I'm thinking of ways to disguise part of the
increase and not chase everybody away. In my case, I used to give
oversize packaging; buy a 10# peck, you get 12# of apples. I also
used to be very fussy on grading out ANY defect.

My plan, at this point, is to reduce the package size, let minor
defects go, and only raise prices slightly, just under 10%.

Every other small business is in the same boat. For my 2 cents, I
think we're looking at serious inflation after the fall elections. Ag
products just seem to be getting hit first. (been to the grocery
lately?)


Karl I've been watching my supplier prices go through the roof for over a
year now.
I'm finishing up a project right now that has a large Nickel 200 part in it
and I was originally quoted about 5K in October 2007 for the material.
I ordered in December and when delivered the price was $8,300.00.
Stainless Steel and Aluminum have also been climbing steeply although the
curve looks a little different on a calendar.


--

John R. Carroll
www.machiningsolution.com