BISMARCK, N.D. (KFYR) – A new national study found that a majority of small business owners have had to raise prices because of supply chain issues and staffing shortages.
“Ever since COVID hit, basically, everything has gone up,” said Tim Oldham, owner of T&T Tire and Auto in Ray.
For Oldham, tire prices from his suppliers have gone up by 40 percent.
“Everybody’s feeling it. I mean, I get hit with the price increase, so I have to pass that onto the customer, you know?” said Oldham.
And Oldham isn’t alone. A new national study found that 73% of businesses nationwide have had to increase prices to keep their businesses going.
With the highest inflation rate in four decades, businesses are forced to pass some of those costs on to consumers as many business owners already operate on razor-thin margins.
According to research, small retailers are more likely to raise their prices for goods and services compared to those in professional services and manufacturing.
Oldham says it has been difficult to explain the price increases to his customers, but he says luckily, they have been understanding.
“When a set of tires costs you a couple of hundred dollars more than what they used to, that’s very hard to pass along to the customers and try to explain that to the customer,” said Oldham.
Research shows consumer prices have surged almost 10 percent since January. That is the largest increase since 1982.
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