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By James Pruitt, Senior Staff Writer

Inflation has become a growing concern as cash has flowed into consumer’s hands following the outset of coronavirus. In theory, businesses should increase prices, especially as labor becomes more expensive. In fact, the economy is more chaotic and unpredictable. Business owners should consider sound realities before they jump to conclusions about how to price their products in the post-pandemic economy.

As discussed in previous blog posts, the pandemic sent the trend toward online consumerism into overdrive. Consumers know they can now resort to online sources that maintain a low overhead. This development bodes poorly for “brick and mortar” stores. Unfortunately for such establishments, the balance of power may continue to shift in the direction of online consumers.

What can a small business owner just out of the military and looking to apply their newfound skills do, especially in this strange new economy? Fortunately, many strategies can simplify marketing efforts.

  • First, human interactions, in general, have become more online over the past few decades. The possible end of the Pandemic will not change this trajectory. During the Pandemic, online interactions only became more sophisticated and established. websites and social media have only gained importance. Every economic participant, including veteran business owners, should become more Internet savvy. 
  • Second, unpredictable shifts in price can leave entrepreneurs unprepared. Given confusing shifts in the economy, business owners should understand current market circumstances in the here and now. For this reason, entrepreneurs should stay vigilant about direct competitors. Confusion may arise from assumptions and inaccurate predictions from the media. Mindfulness about the here and now should prevail.

“Staying vigilant” does not mean cutthroat behavior. “Staying vigilant” means an understanding of a ballpark range for goods and services catering to your specific clientele. Everyone benefits from some level of cooperation. Consider networking groups or your local Chamber of Commerce. Of course, backstabbing tactics only draw the worst kinds of attention.

Learning spreadsheets can help new business owners compare themselves most accurately to rivals in the current, uncharted online market. Microsoft Excel, as well as Apple Numbers and Google Sheets, may provide tools to compare prices with similar online marketers. 

  • Third, new business owners should consider their own costs and capacities. Many analysts divide these costs between variable and fixed costs. “Variable” costs shift with demand and changes in the economy. “Fixed” costs may include contractual obligations such as overhead, payroll, and the costs of maintaining websites. The goals and resources of the business owner may determine the outcome.
  • Fourth, consider profit margin and your own economic needs. Profit margin tends to vary by industry. Usually, profit margin consists of the difference between the cost of maintenance and the income from sales. Great damage can occur when the owner has invested heavily in the business, and profit margins stay low. A home business may need only a low-profit margin, and a restaurant or auto shop inevitably requires a much higher one, due to the cost of equipment.
  • Fifth, underpricing may ruin a business. Many entrepreneurs try to achieve brand recognition through discounts, sales, and cheap products. Misguided attempts at market penetration can leave consumers turning their noses when entrepreneurs need to raise prices to simply pay the bills. 

In short, pricing depends largely on the circumstances of the business owner. Generally, higher investments in overhead and equipment necessitate much more careful analysis. Always, the best price for a product or service depends on the relevant market. Hairbrained schemes such as underpricing rarely serve anyone. Veteran Business Owners need to balance their own circumstances and those of any other market participants, including clients and competitors. 

VAMBOA, the Veterans and Military Business Owners Association hope that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:

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