In recent years inflation has become one of the prominent issues in America. Inflation is the general increase in prices and fall in the purchasing power of money. It is caused by a number of factors currently happening in the economy. Inflation has gone up dramatically the last few years as a result of Covid-19.
Lowellville is a small community with just under 1,000 residents. With the annual inflation rate being 26.63% according to USA.com, it makes everyday living harder and harder for these families. Family owned businesses are being heavily affected by inflation. With prices rising and reduced purchasing power, small family owned businesses will have less product to sell and potentially lower profit. Businesses that have been around for decades are being impacted as well. Lowellville has several family owned businesses that are trying to navigate through these tough times.
Gerrod Hrushovsky, owner of H&M Houses said, “People aren’t willing to pay what they have for houses nowadays which makes it more difficult to make a profit.” This is heavily affecting him because he has to make the decision to either lower his prices and not make as much profit, or keep the prices the same and risk no one buying it. With real estate prices currently through the roof, it just shows what inflation has done to his business, and every other housing business too.
Carchedi’s waiter Devan Palomaki stated, “For the most part things have stayed the same. Although chicken has gotten very expensive and it’s hard to keep customers happy.” Devan doesn’t have all the inside info only being a waiter but, he doesn’t feel like inflation has affected them as hard as it has other businesses. Mainly because they aren’t a restaurant that primarily sells a lot of meat which is what is expensive right now. Although the dishes that they do sell with items like chicken and steak have gone up in cost.
The General Manager of Station Grille at Mellilo’s Kristen Pallozzi said, “Food prices are constantly increasing and it’s difficult to keep changing the menu. We want to keep customers happy but still make a profit.” Mellilo’s is a very nice, fine dining restaurant, earning 4.5 stars on Google reviews from customers. Menu items and ingredients are expensive and with the addition of inflation right now it’s tough to keep the prices down. They are really hoping inflation decreases in the future to keep customers satisfied.
These small businesses and others in our area cannot do much to change the impact of inflation; however, they can develop strategies to help their business make it through these tough times. Restaurants can change their menu items or raise their prices to compensate for the rising prices in food. Changing distributors, budget changes, and adjusting business hours are ways to save money. Updating social media and other marketing platforms can help draw customers into restaurants and stores. Hosting holiday events can draw in new customers who will bring in new business. Businesses are doing all they can to stay above water during these tough economic times.
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