Rani Jarkas Shares Strategies to Fight Inflation

In 2022, the world saw its highest inflation rate in decades at 8.8%. That number is expected to decline in the coming years, but not by much. High prices are here to stay, and businesses are just as likely to be affected as consumers. So how do you keep up with the increased costs of products, higher borrowing rates, and demands of unhappy customers? Financial executive Rani Jarkas has some tips.

How to fight inflation, according to financial expert Rani Jarkas

• Increase prices

Business essentials such as raw materials, transportation and distribution services, and utilities rise along with inflation. This can make the cost of running a business more expensive, and the simplest way to compensate for your losses is to increase your prices.

However, businesses offering products and services that are not unique or in high demand could suffer after increasing their prices. Customers will likely search for more affordable alternatives, especially if your products aren’t perceived to have better quality.

• Reduce product quality

Rather than increasing your prices to keep up with the costs of raw materials, you can cut costs by downgrading the quality of your products. So, for instance, a restaurant might serve smaller servings of meat, or a clothing store can produce pieces with cheaper fabric.

This method is ideal for businesses with an audience that values simple, functional products. However, it may not work if your brand image revolves around product quality.

• Explore alternative pricing models

If raising your prices is not viable, you can consider switching pricing models to avoid disgruntled customers. The subscription model is a popular example, allowing consumers to pay for services in set intervals.

What’s great about this method is that it gives you a more regular income for the long term. However, businesses adopting this strategy tend to suffer large upfront losses due to setup costs.

Searching for more ways to combat inflation? Work with Rani Jarkas Financial Services and Investment Firm to find the most suitable strategy for your needs.