21 Ways To Grow Your Business Without Social Media

21 ways to grow your business without social media...getty

Even though it seems like everyone is doing it, you don’t have to use social media to grow your business. This fast-paced, notification and newsfeed-centred way of distributing and consuming information might not be for you. It might not suit your business; it might just not be your jam. Plenty of businesses have flourished in the internet age without participating in social media.

If you don’t fancy creating content and interacting on social media platforms, here are 21 other ways of growing your business.

1. Go networking

Research networking events happening online, in your area or for your industry and go along. Be ready to meet a lot of people and follow up with those where you see synergy. Find an excuse to get in touch with them after the event, for deeper, real-life conversations that bring introductions and new clients. Don’t be shy; the networking gains go to people who put themselves out there and work the room. Remember other people and be memorable yourself.

2. Create collaborations

Collaborate with organisations and individuals with whom you share a target audience. Perhaps they pass you work as an associate of theirs, with or without a commission. Maybe you collaborate on programmes or the delivery of your work or your service is included in their proposals. Collaborations with big players in your industry can keep business coming your way with no tweeting required.

3. Take rifle shots

One step up from networking, research people who will make perfect customers, collaborators and connectors and get in touch from scratch. Aim to meet them at an event, ask them to book a call or take them for a fancy lunch. Have a compelling reason to book their time and don’t waste it when you have it. Then, play the long game. Keep a personal CRM to remember what you talked about and follow up regularly.

4. Improve your SEO

Ranking well on Google is no mean feat. If you can appear at the top for terms your audience is searching, you will win traffic and customers ahead of your competitors. For this to work, go in depth. Increase your SEO knowledge; learn about keywords, meta descriptions and link building. Arm yourself with the tools for search volumes and domain authority and be ready to create a lot of content.

5. Run ads online

Google Ads and YouTube ads can be a solid way of growing a business. Rather than building your own house, you are simply renting the land. Create incredible ads in the format required, collect tonnes of data, then analyse and edit. Keep going until you have a winning combination of headlines, images and calls to action that keep your potential customers clicking through to your site.

6. Join communities

There are more communities around than ever, so find the one that works for you. This could be for people in your industry, location or simply other entrepreneurs. Join and aim to add value. Share what you know, help other members, give everything you have before you ask to take. By the time you do, you’ll be trusted and well-known and members will be ready to introduce you or sign up as your customers. Cherry pick some of the members to create a mastermind for a personal development bonus.

7. Grow an email list

Rather than hitting publish and hoping you appear on enough newsfeeds, as with social media, with email marketing you can hit publish and know you are landing directly in the inbox of your subscribers. Grow an email list through all the ways mentioned so far, and offer a lead magnet to incentivise people to sign up. Once you have them, communicate regularly and consistently add value.

8. Make use of podcasts

Podcast usage is growing like crazy and it’s only going to increase. Your podcast strategy could be to start and grow your own, to guest on other people’s or to advertise on popular shows within your niche. Each requires careful research and planning to make sure you’re not wasting your time. Practice telling your story, build your network of podcast hosts and create goals for the number of shows you want to record or appear on.

9. Start a newsletter

One way to build your email list is starting a regular newsletter that they can’t wait to read. You could share a roundup of what’s been happening in your industry or offer a new video, article or insight with every issue. Plan your newsletter series, decide a launch date, then go out to people you know to collect your first hundred subscribers. Publish consistently. In every issue, encourage readers to share with their networks to grow your subscribers.

10. Exhibit at trade shows

Many industries still run trade shows and it’s a great way to build up a buzz and meet a bunch of people. Exhibiting means investing in a plot, a stand and a way of standing out. Attending means working the room like you would any other event. Exhibit with a game plan; know who you’re looking to meet and what you will say once you meet them. Automate your follow ups to exhibit with ease.

11. Work on public relations

Rather than schmoozing your followers, take a narrower approach and schmooze journalists by email. Get on their radar, catch their attention and follow up with ideas for how they could include you in their publication. Successful public relations require an advanced strategy of staying up to date, bugging them just the right amount and adding commentary in a way that other people want to publish what you say. Or, be so newsworthy that journalists come to you.

12. Run workshops

Whether online or in person, run workshops to share your message and teach your methods to groups. Advertise on websites such as Eventbrite, Meetup and Airbnb experiences to bring people in from their traffic, notify your email list or tell local business owners and pin flyers up in the community. Run them regularly so your attendees create the habit, then ask them to tell a friend and grow your workshop numbers by referral.

13. Run print ads

Online advertising is sexy but print ads can still be a solid bet. Magazines and newspapers are still read on paper, same as event programmes, billboards and sponsor displays for sports teams. Design a stunning ad complete with a tried-and-tested call to action. Testing print ads also requires including a code or specific URL so you know when they have been a success, but it might work perfectly for your business.

14. Host events

Networking events, awards dos, fireside chats, panel discussions, contests, dinner parties. There is no shortage of events you could run for people who make great customers or connectors. Design and plan the event then tell everyone you know, incorporating the other methods in this list to get the word out there and get people along. One successful event means you can make it annual, to bring fresh customers to your door year on year.

15. Become a blogger

Instead of waiting to be printed by the journalists you schmooze, start your own blog for your own target audience. Decide on your topics, decide on your cadence, then begin turning writing and publishing into a habit. Engage within blogger communities to share your link, make it easy for readers to turn to subscribers, and cover every topic that you know is relevant to your dream customer base. Write with a specific person in mind and test out formats as you go along.

16. Work with influencers

Instead of building your social media following to promote your own company, make use of the effort influencers have already spent building trust within a specific niche. Find them online and ask if they work with brands, then define an influencer budget and try a few out. Metrics can lie, so keep track yourself. Experiment with different types of placements and different types of people until you hit on perfect alignment and the sales start to flow.

17. Do speaking gigs

If you’re an entrepreneur with a story, other people want to hear it. Set yourself up as a speaker to be booked for events that others are hosting. Get good at educating and inspiring to add the most value possible. Approach big brands and event organisers and set up profiles on speaker directories. Include a way of people hearing more within your presentation and nurture them through to enquiries and sales.

18. Build and they will come

Set up on a busy street to make use of location in getting new customers. New bars, restaurants and coffee shops in high footfall areas benefit from potential customers walking by every single minute. For an online alternative, build something cool and post it on Product Hunt or Reddit. Ask your friends to upvote and share with your list. Post when you’re ready for potentially thousands of hits.

19. Guest blogging

Other business owners run websites that are hungry for content. Provide the content to be published on their turf. Not only may a valuable article be read by their audience and start flocking your way, but you can also ask for a backlink to build the ranking power of your site. Build relationships with the webmasters and editors of collaborator sites and mind map article titles to offer to them. If they accept, write in their style and add all the value.

20. Have a referral programme

If I loved your product and wanted to tell my network, could I earn commission when they bought? Referral programmes and affiliate links are one of the simplest ways to incentivise happy customers to bring their friends. Create the programme, invite specific people, then share the winnings and grow your business on their shoulders. You could include a referral link on packaging or landing pages.

21. Start your own group

Chances are, you know some cool people. Your customers, suppliers and extended network likely have plenty of things in common. There’s huge value in starting a group and being the connector of everyone you know. Group ownership means curation of topics, suggesting of ideas, and being in everyone’s minds every time they engage. Use Discord, Slack, Mighty Networks or an alternative to connect and chat online.

If you are determined to grow your business, there are plenty of methods you can try before you dance around for TikTok or become a victim of the Instagram algorithm. Finding people, adding insane value and staying in touch is the basis of most business growth, and these 21 ways provide an alternative way to do exactly that.

Entrepreneur psychology and how to run a business without it running you. Post-exit entrepreneur, author of Ten Year Career and Forbes’ 30 under 30 social

Source: 21 Ways To Grow Your Business Without Social Media

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5 Steps For Creating a Content Marketing Strategy That Drives Business Results

  shutterstock

Here are five crucial steps your brand should take to create a content marketing strategy that grows your business and drives results. “Never ask for anything, and especially from those who are stronger than you. They’ll make the offer themselves, and give it of their own accord” — that’s one popular quote from Mikhail Bulgakov’s book, The Master and Margarita.

Even though Bulgakov didn’t mean that in the context of , that’s a generally good rule. Content marketing is one thing that provides the most inbound requests. In other words, make people come to you first and offer themselves.

According to , 78% of companies with a documented produced effective, meaningful content. Content marketing generates over three times as many leads as outbound marketing and costs 62% less. However, it’s essential to ensure your is creating content that’s useful to your customers and able to further your company’s long-term goals.

There’s an overwhelming amount of content available in digital spaces, so here are five crucial steps your brand should take to create a content marketing strategy that drives results:

Related: 4 Simple Steps to Creating an Effective Content Marketing Strategy

1. Figure out your narrative

The most memorable and successful brands have one thing in common: They tell an engaging, consistent story. Storytelling is the heart of a great content marketing strategy, so investing the time and resources necessary to perfect this aspect of your business is important.

Psychology Today notes that stories help humans increase feelings of empathy by releasing the “happy” chemical oxytocin and reducing the stress hormone cortisol. The right story still sparks that primal part of the human psyche that engages our emotions and fosters a sense of meaningful connection to each other and the brand telling the story. In essence, stories are how we think and assign meaning to our lives.

Anyone can create a meaningful story around their product or service, and 92% of consumers say they want to see ads that feel like a story. is a notable example of this. Buying furniture isn’t exactly the most exciting task. However, customers are incredibly loyal to Ikea, not because of their quality or prices, but because they’ve created an immersive narrative around experiencing the aspirational joy of designing your home with simple, elegant pieces that reflect who you are.

2. Research your target audience and channels

Before creating a compelling narrative, you must know to whom you’re telling the story. Generating leads and traffic is consistently one of the most challenging aspects of marketing, which is why it’s essential to research your target audience thoroughly.

Create an avatar of your ideal customer, and spend time fleshing out this person’s backstory. What’s their age? Gender? Average income? What kinds of careers might this person want? What do they do for fun? What type of personality do they have? The more three-dimensional you can make this avatar, the more intimately you can understand your target audience.

For an example of how this is done right, scroll through MoonPie’s Twitter. They have perfected their brand voice to reflect their target audience: Someone who enjoys quirky humor and doesn’t take themselves too seriously. As a result, they’re highly relatable to their audience and facilitate engagement in a seemingly effortless manner.

Related: To Reach Your Target Audience, You Need to Use These 5 Steps

3. Generate content ideas

Did you know that, on average, 35% of companies have zero dedicated content marketing personnel? This means that it’s hard to come up with consistently fresh content and stay on top of trends. Tools like UberSuggest, Google Trends and Buzzsumo are all great ways to maximize your content generation ideas when you don’t have a dedicated team, but there are other things your brand can do as well.

Depending on your goals and audience, there are plenty of ways to generate eye-catching, shareable content ideas. You can set up trend alerts on platforms like Instagram and to capitalize on viral videos and memes, or you can even turn to your user base to create a user-driven campaign.

Neutrogena is an example of a successful user-generated content campaign with their Neutrogena Studios platform. For this, they’ve allowed customers to create video content submissions focused on skin health. Not only does this utilize brand loyalty and provide an evergreen source of marketing content, but it also requires minimal resources for a great ROI.

4. Decide on distribution

No matter how great your content is, your time and resources are ultimately wasted if you can’t get it in front of the right audience. From ebooks, blogs and podcasts to graphics and webinars, there are countless ways to distribute your content.

Which channels you choose will depend on your goals and target audience. However, there are three main channels: paid (e.g., Instagram ads), owned (e.g., email newsletters) and earned (e.g., social media shares). In most cases, a successful content distribution strategy will be some combination of all three channels.

The optimal distribution strategy comes after defining your target audience and figuring out your narrative. These two steps inform the types of content you’ll focus on, which helps you determine the best channels for getting your content seen and shared.

A key component of distribution is ensuring your owned channels are optimized, because this is the avenue you have the most control over. Oracle Vitrue’s “Like Can Never Replace Love” campaign saw massive success because the company emphasized promotion through its owned distribution channels (e.g., staff, partners, influencers and customers).

Related: 4 Content Marketing Strategies to Boost Your Business

5. Measure your results

Every content marketing strategy needs goals and measurable KPIs to determine whether or not a campaign was effective. KPIs like content impact, engagement, traffic and sentiment are great starting points. Still, these can be further divided into more nuanced metrics like unique page views, conversions, top exits, bounce rates and social shares. Remember that the metrics will differ for each distribution channel, and understand that figuring out the proper baselines and metrics for your brand will likely take time (and some adjustment).

In the case of Casper, a sleep startup that has built its brand on content marketing, those metrics could be features in top-tier magazines that entail recognition among a broader audience. Despite its financial problems afterward, Casper had first grown rapidly, generating $30 million in revenue and expanding its team from five to hundreds of people in less than a year.

The company was featured as one of the most innovative companies by Fast Company in both 2016 and 2017. “The brand made a splash on social media, releasing a series of creative Snapchat and Instagram stories,” they wrote. Casper also hired journalists and announced the launch of its own editorial venture focused on all aspects of sleep. So, no matter what, Casper has its own identity and a foothold in brand history.

Related: How to Craft a Content-Marketing Strategy That Works

Remember that your content should be emotionally compelling and purposeful. Great content marketing strategies allow brands to establish genuine connections with their audience. Don’t be afraid to explore what will work best for your brand and try different options. Ultimately, it’s essential to recognize that content marketing strategies are dynamic, ongoing processes that will shift and change over time. So, it’s wise to start dedicating time and resources toward it now to get a jumpstart on the future.

Source: 5 Steps for Creating a Content Marketing Strategy That Drives Business Results

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The Art of Eating Well in Antarctica

In 1916, when a Chilean ship rescued a group of shipwrecked British explorers on a failed attempt at the first land crossing of Antarctica, the men were on the brink of starvation. They’d resorted to gathering limpets and seaweed to eat with stewed seal bones. By the time the Chilean crew gave them a full meal, the men’s stomachs had become so atrophied that many of them fell sick.

Antarctic cooking has come a long way since then; just ask Carol Devine and Wendy Trusler, the authors of The Antarctic Book of Cooking and Cleaning, a cookbook-memoir that recounts their Canadian–Russian cleanup expedition from 1995 to 1996, with a combination of recipes, journal entries, and photos. In the resourceful hands of Trusler, the team’s resident cook, Antarctica’s icy landscape became home to steaming honey oat bread and bubbling pots of cheese fondue. And from their Russian hosts and generous neighbors on the nearby Chilean, Chinese, and Uruguayan bases, she and Devine learned a thing or two about international cooperation—and how to make a mean pork dumpling.

During the Southern Hemisphere summer that spanned from 1995 to 1996, a motley crew of 57 volunteers—“including teachers, retirees, a judge, a music industry executive, two writers, a Dutch travel agent, and an amateur cartoonist”—arrived in small, rotating groups to clear nearly 30 years of garbage. As Devine writes, “In Antarctica, waste doesn’t decompose.”

The team was led by Devine, the founder of the Volunteer International Environmental Work (VIEW) foundation. Volunteers traveled by ship from the southern tip of South America to Antarctica’s King George Island, a 90-percent glacialized island that houses Russia’s Bellingshausen Station. The station’s researchers and crew were generous hosts, and became their friends.

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To provide tasty fuel for weary volunteers, Devine hired Trusler, a visual artist and cook who had gained a reputation for culinary magic from her work feeding tree planters in Northern Canada. In a windowless room, Trusler built a kitchen with a stove on loan from the Canadian Arctic Program. There, she churned out meals from shipments of dry and canned goods, frozen meat, and fresh produce that she stored in a makeshift cold cellar. The results were delicious, including cinnamon buns, Ukrainian cabbage rolls, and frozen chocolate cream.

In 2012, almost 20 years after their austral summer, Devine and Trusler published The Antarctic Book of Cooking and Cleaning, drawing on recipes Trusler had studiously collected, as well as both women’s photos and journal entries. Gastro Obscura talked with Trusler and Devine about limited-resource cooking, international generosity, and why Antarctica is “more relevant than ever” today.

What were the biggest challenges you faced cooking in Antarctica? And what do you think you learned from them?

Wendy Trusler: We had everything delivered at one time, [so I had to] make sure I had provisions from December till March…So when all this food came in one shot, I was like, okay, what are we going to do with that? Fortunately [thanks to] the generosity of the Russians, I was able to use their freezer, which was like a 15-minute walk from where we set up our kitchen…Also there was a shed behind the building that I worked in. I had the guys clear out all the equipment and that became like cold storage. It turns out the Antarctic is the best place to set up a kitchen, at least at that time of year, because it hovered between maybe just under zero and plus five [degrees Celsius, or 32 and 41 degrees Fahrenheit]. So it was perfect for a cold cellar.

Carol Devine: The stove was always smoking…I was worried about health and safety. Is [Wendy] going to get lung damage from this? And the food had a smoke flavor.

WT: One of the [Russian] guys made this widget or something that stopped the flow of or regulated the gas flow so it was burning properly.

In the past, explorers have struggled to survive in Antarctica. What was it that enabled you to eat so well?

CD: First, we recognize that we were privileged and things have changed in Antarctica. . . . But—and she probably won’t say this of herself—Wendy is incredibly resourceful and doesn’t waste. … I think the food and the recipes reflected resourcefulness, but also fun and play. We’d joke: There’s a bird, the skua. And the skuas steal food, and they’re a really nasty bird. Wendy would be like, “Okay, a ship’s coming. I’m going to go ‘skua’ us some alcohol and plunder.” She would be like, “We gotta grab opportunities!”

WT: [These skills] helped me during COVID. I prided myself at the beginning of COVID, where there were really long lineups for food outside of stores and things like that, and you wanted to limit the amount of time you were in the store, I shopped for a month or I could go for five weeks without having to go shopping [laughs]. I bought the live lettuce and I planted it in dirt and grew my own lettuce, and would just sort of plan turnover meals, which is something I did in Antarctica, too.

Both of you have mentioned how much food meant to people or how much it always can mean to people. So, in the particular context of Antarctica, the place you were staying, and the volunteer work, what did meal time mean to folks? Why was it important?

WT: We would get a different team every four to five days…we had a very short time to make a team coalesce and to make people feel comfortable. . . . I thought [mealtime] was an opportunity to make people come together. So one of the first meals I would do would be make-your-own something or other: make your own pizza, or we’d have fondue—something that was hands-on, that they needed to communicate with each other.

book is filled with descriptions of your breaking bread with the staff of other bases on the island. Are there any moments that stick out to you in particular?

WT: [One time], the Chinese cook wanted to come and learn how to make bread. And it was interesting because it’s not really something that is part of their diet. And then I said, “I want to learn how to make Chinese dumplings.” And when I went over to that kitchen, it was so amazing. I was transported into China. They have this huge butcher block and it was this giant wok, set over this really interesting stove that I would never have worked with…I had a dinner in their very ornate dining room, which had silk screens and a mahogany table… I feel like what we did or what I did down there, going from base to base, rekindled my sense of wonder.

Have you been in touch with anyone who has used the book in sort of a limited-resource context since it was published?

CD: Several people have bought the book to give it to their friends who want to be a cook in a tree-planting camp. And then we know that friends have bought it for Antarctic cooks. We know the book has multiple uses. I’ve spoken to kids around the world about Antarctica. One of my favorite questions was, ‘can you order a pizza to Antarctica?’

I’m guessing the answer is no.

CD: The answer is no.

In the book, a volunteer describes Antarctica as a place with “many countries and no borders.” I was wondering if you could talk more about what you learned from that environment.

WT: What I love about remote sites anywhere is you’re forced to rely on one another… to remember what it is to be good to one another, what it is to be a good neighbor. Just because you’re so isolated and you have no one else that you can turn to other than who’s beside you. And I like to carry that with me in what I do now…The generosity and sharing with one another, being curious about one another, sharing your food, storing it well—all that sort of stuff that we cultivated down there can be cultivated anywhere by anyone.

CD: Antarctica, and even these bases, is a lesson in how at least rich and middle- income countries have to share resources, to use everything until its final day. Antarctica is more relevant than ever.

Source: The Art of Eating Well in Antarctica – Gastro Obscura

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Consumers are Shifting Their Spending From Goods To Services

The Covid-19 pandemic has strained global supply chains, causing freight backlogs that have driven up costs. Now some companies are looking for longer-term solutions to prepare for future supply-chain crises, even if those strategies come at a high cost. Americans responded to the pandemic with a dramatic shift in spending to goods from services. That now appears to be reversing and should gather steam as the Omicron wave of Covid-19 ebbs, economists say.

Consumers shopped more online in the pandemic, and changed what they bought. Unable to eat out or travel, and with both school and work going remote, they splurged more on things for the home such as furniture and computers. Several rounds of federal stimulus amplified that spending spree.

Goods—including nondurable goods such as food and clothing, and durable goods such as cars and appliances—averaged 31% of total personal consumption in the two years before the pandemic. That soared to 36% in March and April 2021, shortly before Covid-19 vaccines became widely available. The share has been dropping since, to 34% in December. Consumer spending on goods fell that month for the second month in a row, according to the Commerce Department, while spending on services increased slightly.

James Knightley, chief international economist at ING, said consumers are starting this year with “a combination of general fatigue of buying physical things and Omicron reducing the ability to spend on services.”

After bingeing on goods earlier in the pandemic, consumers are taking a breather. What’s more, spending on goods has been hit by supply-chain constraints, rising prices and dwindling government stimulus funds. As warmer springtime weather comes to much of the country and falling infection rates help people feel more comfortable socializing in-person, pent-up demand for services such as travel and dining should recover, said Robert Frick, corporate economist with Navy Federal Credit Union.

“If the Omicron wave continues to decline and there’s no follow-up strain, I do think we’re going to see a shift to a more normal breakdown in spending on goods and services,” he said.

That could be important for the inflation outlook. Strong demand for goods coupled with disruptions to their supply have fueled inflation, sending it to a 39-year high of 7% in December. Prices for goods such as furniture and appliances rose 10.7% in December from a year earlier, while services inflation for costs such as rent and airline fares was up a more moderate 3.7%. If consumer spending rotates back to services from goods, some of that upward pressure on goods prices should dissipate.

Economists caution that 2022 is off to a weak start. The Omicron wave hurt consumer spending and job growth in December, trends that likely continued through January as cases of the Covid-19 variant peaked. Real-time data show that restaurant bookings and travel remained depressed in January, suggesting the shift toward services away from goods may have paused in January.

But looking ahead, a strong labor market and rising wages mean many U.S. consumers are starting 2022 with robust income prospects that are likely to help fuel the services recovery this year. “All the indications are that it will be a big year for travel,” said Visa Inc. Chief Financial Officer Vasant Prabhu. “We see the shift to services continuing to gather momentum.”

 Travel, restaurants and entertainment services all stand to benefit, he said, adding the economic impact of Omicron is more short-lived than earlier Covid-19 waves as people learn to live with the variant.

Airlines were hit hard by the Omicron variant, with travelers scrapping holiday trips and staff absenteeism prompting flight cancellations over the holidays. Still, executives are optimistic about a speedy recovery.

“The GDP growth we’re seeing now, the excess customer savings, customer spend in other categories and even things like New York City rents snapping back pretty quickly, all seem to indicate real strength for the customer and pent-up demand that wasn’t there in the past,” David Fintzen, an executive at New York-based JetBlue Airways Corp. said during an earnings call last week.

One potential roadblock to higher spending in 2022 is inflation, as shortages of supplies and workers are pushing up prices and wages at levels that may become unaffordable to some households. Some consumers are forgoing purchases because of sticker shock. “We will not buy a used car at the prices we’re seeing now, it’s ridiculous,” said Cory Randall, controller at a cattle company in Amarillo, Texas, who had been considering a secondhand compact car purchase as his son recently turned 16.

Mr. Randall isn’t alone. The Federal Reserve Bank of New York’s most recent Survey of Consumer Expectations found the share of households that made a large purchase over the past four months decreased to 58% in December from 63% in August. Households reported that they were less likely to make a large purchase over the next four months—like on a vacation, home repairs, home appliances, furniture and vehicles—than in the prior survey.

Source: https://www.wsj.com

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One-Third of Businesses Plan To Raise Prices In The Coming Quarter

Over a third of all businesses (38%) anticipate raising the price of their goods or services by more than usual in the next three months, a similar result to March 2022, according to the Australian Bureau of Statistics (ABS).

ABS Head of Industry Statistics, John Shepherd, said: “Most of these businesses were finding that increases in the cost of products and services (92 per cent) and fuel and energy costs (78 per cent) were leading factors for planned price increases.”

The other side

The survey results also showed nearly half (48 per cent) of all businesses have no plans to increase their prices over the next three months. “Of these businesses, nearly half (46 per cent) said it was to retain customers and 46 per cent said they had fixed-price contracts in place.” Mr Shepherd said.

The results also provided information about planned capital expenditure over the next three months. Almost one in five businesses (18 per cent) have planned capital expenditure in May 2022, consistent with findings in May 2021 (17 per cent). Nearly half (48 per cent) of businesses planning capital expenditure indicated it would be higher than what is usual for this time of year, fewer than a year ago when 59 per cent planned for higher expenditure.

The biggest Influencing factors on whether businesses were planning for capital expenditure were uncertainty about the future state of the economy (25 per cent) and supply chain disruptions (23 per cent).  Current inflation in Australia, as in much of the rest of the world, is the result of a combination of short-term and long-term factors and concerns about demand and supply.

The Reserve Bank of Australia previously raised the official cash rate for the first time in over 11 years from 0.1 per cent, which it had been at since November 2020, during the height of the Covid pandemic. It was raised to 0.35 per cent, which was higher than expected, and the RBA stated that additional increases were on the way.

Furthermore, the Russian war on Ukraine increased commodity prices significantly above pre-COVID levels. They produce more than one-tenth of the world’s oil and wheat.

By: Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

Source: One-third of businesses plan to raise prices in the coming quarter: Survey

Critics by Patricio Ibáñez, Ricardo González Rugamas, Sajal Kohli, and Eric Kuehl 

To understand the process of determining which price increases are fair and which are not, consider an example. A leading apparel retailer recently received price increases from suppliers for many of its primary brands, each citing the inflationary environment as the reason for the increase. The company wasn’t sure how it should respond.

This retailer needs to determine whether suppliers are passing along an increase that’s in line with inflation’s effect on the supplier’s costs. Although it’s not possible to answer this question exactly, the retailer can at least pressure test the increase by determining if it falls within a fair range.

To do this, it began by identifying the main cost inputs that have the highest level of change, especially in an inflationary environment. In this example, these cost inputs were commodities (such as cotton, polyester, spandex), as well as labor and transportation (such as import costs, shipping, and freight).

Second, it estimated the percentage of the total cost these inputs make up. We would expect that fabric makes up about 50 percent of the total cost of a men’s cotton T-shirt. It’s safe to assume that cotton fiber (which has a commodity index, making its cost relatively easy to research) makes up roughly one-third of the fabric’s cost.

Immediate commercial opportunities to mitigate volatility typically include maximizing spend on existing contracts whose prices aren’t indexed for inflation and requesting clawbacks on unindexed contracts that covered periods when commodity prices fell. Digital and analytics solutions can enhance cleansheet analysis to uncover how much purchases should cost for large parts of company spending, which lets managers quantify the extent to which inflationary pressure should affect supplier prices.

To improve future resilience, supplier collaboration can drive joint efficiencies and potentially help the organization look beyond price and at changes to quality or specifications or at finding ways to use less. Finally, companies can consider ramping up collaboration between pricing and procurement teams to weigh inflation’s possible effects on the prices the company charges its own customers.

The defensive, technical levers to respond to inflation include accelerating value engineering and adjusting batch sizes or order frequency. Reducing SKUs or high-cost features and attributes by modifying specifications is a potential medium-term technical lever that can help improve resilience. Depending on the sector, options to address volatility in the short-to-medium term include optimizing supplier footprints for better control over logistics, cost, tariffs, and inventory.

Longer-term volatility challengers could include strategic inventory stockpiling, relying more on vendor-managed inventory, expanding cross-industry collaboration to share commodity exposures, and partnering through the end-to-end supply chain to derisk certain nodes.

To approach suppliers in high-priority categories, a targeted playbook can help strengthen negotiation strategies, with pressure testing via mock negotiation sessions that anticipate potential supplier counterarguments…

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