#WednesdayWisdom – Sales Pricing in Inflationary Times
We are looking at some serious inflation this year coming from:
- A global construction boom in western companies as economies open and pent-up demand kicks in
- Large increases in the cost of container shipping
- Disruption in our supply chains due to Covid and other factors.
- There is a shortage of skilled labour occurring in many industries
We are already seeing large increases in building materials and other raw materials.
All these increases in costs will lead to product and wage inflation.
We have not had this scale of inflation for over a decade.
Business owners setting sales prices during inflationary and disrupted supply times need to consider:
- Availability of supplies when quoting for projects happening over a period.
- The replacement cost of stocks being sold – a higher replacement cost will need to be factored in before calculating what your profit is.
- Availability of labour and wage inflation will also be factors.
If you need advice on this matter, get in touch.