EDITORIAL: Rising prices a concern
Business owners in Barbados recently learnt more about the “Costing and Pricing of Services” as the Financial Literacy Bureau hosted another virtual clinic via the Zoom online platform. The immense challenges many business owners have with regard to costing and pricing of their services were discussed and mechanisms to make the task much easier to manage were shared.
Following this, the topic of “Managing Personal Finances” came up for discussion as the Financial Literacy Bureau hosted a virtual clinic as well, where valuable tips were shared on how to manage finances, especially during a crisis such as this present COVID-19 pandemic. Participants were taught how to conduct a personal finance assessment and the need to spend less, earn more, and invest wisely.
Now, without a doubt, we need to have some balance when it comes to the matter of business owners pricing their goods and services, versus Barbadians striving to manage whatever funds come through their hands. Oftentimes, it seems that those in the lower and at times middle-income bracket have a hard time reconciling what they pay out versus what they think they should get, and, as such, there needs to be more regulation in terms of how some business persons are able to price goods and services.
Yes, it can be argued that householders need to prioritise their spending and see what they can save. However, the COVID-19 pandemic has been a great equaliser in many cases and a greater number of persons are feeling the pinch where money is concerned. Therefore, whilst business owners have to make a profit, it cannot be at the expense of innocent shoppers.
Just recently, we heard that with the costs of inputs for livestock agricultural production rising, the price of agricultural products may soon increase. It was reported in this newspaper that Chief Executive Officer of the Barbados Agricultural Society, James Paul, indicated that the livestock sector is one that will likely be hard hit due to the rising cost of corn, which is a major ingredient in feed. He suggested that while the farming community can try to hold off on passing those increases on to the consumers in the short term – given the current economic environment – they will not be able to hold off forever. The BAS head said that the supplies of corn, wheat and soybeans are dwindling and as a result the prices are rising. He said that those manufacturing corn-based products will not hesitate to pass on the increases to the wholesalers and they in turn will have to pass them on to the consumer. His comments came as he said customers should probably also brace for an increase in wheat-based products like bread.
We are also hearing persons in the business community pointing out various reasons why their goods and services may increase. And whilst it can be acknowledged that rising prices for inputs are likely to be passed on to the consumer, we have to remember that most persons are not getting a salary or wage increase anytime soon. Also, how can we determine how much is too much in terms of a price increase?
Perhaps, consumers may now have to make a few adjustments here and there, either in terms of what they decide to purchase and the amounts they buy. They may also have to decide how they can produce more of what they need in instances where they can, to allow their dollar to stretch much farther.