Price fluctuations impacted many businesses even before the pandemic, but recent rises in prices have affected nearly everyone. You are up against weather, transportation issues, shortages, and labor shortages, and all these things have caused price swings in nearly every industry. The good news is there are some ways to mitigate these challenges.
Make the Switch to Electric Vehicles
Electric vehicles often have improved fuel economy, and this means they do not cost as much to operate. They are less expensive to run per mile compared to standard combustion engines. While you still must pay for electricity, electricity prices often fluctuate less than the cost of fuel, allowing you to create a better long-term budget. You may be able to take advantage of off-peak times to charge your vehicles. If you are looking to switch to a more sustainable option, electric vehicles are important to consider. They are one of the best ways of cutting operating costs.
Check for Promotions or Price Discounts
Combating price fluctuations is largely about learning lifestyle changes to save more money that are sustainable long term. It is even more critical to check for every discount you can find when your margins are tighter. Look for promotions and discounts as well. Take some time to dig around for rebates, as there are plenty of third-party sites that compile them. There are apps you can use to check a products price history. You will be able to see if the price has steadily increased or if there have been recent sales, and you can use this data to determine the best time to buy.
Review Issues with Customers or Processes
When times were better, you may not have been as concerned about customers who did not pay on time or products that did not perform as well as expected. However, this is a great time to review issues and adjust for inflation. As inflation rises, causing price fluctuations, it is important to look over your product pricing history and make any necessary changes. You can correct any past pricing issues to make sure you are still turning a profit on your products.
Make sure you communicate to your customers if you are having issues with prices or supply chains. If a customer values a service that is more expensive to provide, allow them to get it as an add on. If they need an item sent to them sooner, pass the additional cost on to them.
Choose to Use Pricing Approval Systems
Because prices are changing at such a fast pace, it can be hard to keep up with the changes. However, switching your system can make it easier to implement price approvals. Automating more tasks can help you set up the most efficient system. Instead of allowing managers to purchase products whenever necessary, you might restrict them to purchasing only after you have given your approval. This gives you a chance to determine whether you really need the product or service, and you might be able to shop around. Just make sure the approval process is smooth to prevent workflow complications.
