A number of states, as well as the federal government, have recently passed minimum wage hikes. Many legislators believe it is only a matter of time until minimum wage is increased nationally. What can your business do to protect itself, when most companies are already struggling to make a profit in this fickle economy?
Raise Prices Wisely
Instead of across-the-board price hikes, consider upping the price of a few of your most popular items by just a bit. Most customers won’t notice a marginal price increase of a few select products, but large increases across all product lines can cause customer dissatisfaction. By raising the prices of only your most popular items, people are more likely to pay a little more for what they truly like.
Get Smarter About Scheduling
Is it really necessary to be fully staffed at all times? Perhaps you can get by with a part-time mail crew in the mornings, or maybe open fewer registers during the afternoon lull. Take a look at when your business is the heaviest, and cut back on staffing during periods that are less profitable. If you use this option for saving, you might need a few select vendors to pick up the slack in case an unexpected peak occurs. Consider an answering service to handle calls when staff isn’t available.
Offer Specials to Boost Sales
You can also increase revenue to compensate for higher payroll costs, by increasing the number of special deals you offer. By bringing in extra customers, and selling more to the customers you already have, you can often make up the difference in the cost of paying workers more. Talk to your marketing team about specials that encourage additional purchases at the time of sale.
It’s a good idea to have plans in place ahead of time so that minimum wage hikes won’t catch your business off guard when legislators take swift action to impress the public in an election year.
