The Price Conundrum: As Costs Rise, Does It Make Sense For Entrepreneurs To Hold Prices Down?

When Lloyds Bank spoke to around 1500 small and medium-sized business owners in December, 53 per cent of them said they had raised prices to customers in response to rising costs.

Viewed from one perspective, that could be considered a low number. Just about every business in the UK has been affected by high inflation – currently running at 10.1 percent – with energy prices, higher input costs and rising salary demands combining to create a perfect storm. The obvious way to respond to rising costs is to charge customers more.

But then again, not everyone is in a position to do that. High Inflation is

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