A nationwide rise in the cost of goods and services, ongoing supply chain disruptions and the ongoing impact of the pandemic are causing a tough time for small business owners across the board. After this May Consumer Price Index Report According to the Bureau of Labor Statistics, the headline index rose 8.6% year over year — a four-decade high for inflation.
A study from 2022 in Main Street Megaphone: Inflation & The Economy by SCORE shows that 93% of entrepreneurs are concerned about inflation and have been forced to raise prices by an average of 11% to keep up. A recently US Chamber of Commerce report states that managing rising inflation is the top concern for small businesses in 2022.
Henry Ma, CEO of Ricoma, works with thousands of entrepreneurs scaling custom apparel decoration businesses. His guidance enables new entrepreneurs to weather the coming months of inflation. “I look forward to sharing the business knowledge I’ve gained with our customers,” says Ma. “If they succeed, we succeed.”
Combat falling purchasing power by buying in bulk
During periods of high inflation, Ma advises small business owners to buy supplies and materials in bulk to counteract rising prices. If prices are likely to increase in the near future, stocking needed items means savings later.
However, he warns clothing designers to carefully consider large purchases and only stock up on items they know they will use. Embroiderers, for example, want to stock up on supplies such as needles, threads and pads. You’ll also want to invest in raw clothing that doesn’t go out of style and that customers order frequently.
“Just make sure you actually need the things you buy in bulk,” Ma warns. “You want to save money, but you’re definitely not going to do that by bulk buying inventory that you can’t unload.”
If you have enough cash flow and capital to buy in bulk, consider opening wholesale accounts with suppliers and…
