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The challenges of running an SME business in a volatile market

The rise in inflation, especially the pace and persistance of it has surprised economies worldwide. And of course, New Zealand is not the only one experiencing the crunch.

We (Tidy) have faced this ourselves with increases in many costs, especially in the first six months of 2022, however we have always been a business to use as much innovation as possible to outwit cost increases yet keep delivering a robust service. This is evidenced in being proud to say we've only had to raise our prices twice since Tidy was established over a decade ago.

Soon however, we too will reluctantly have to make our third price increase since founding but believe the increase will still keep the cost to our users among the lowest of our peers.Tidy has, thankfully, no direct costs impacted by companies like Amazon who announced, this week, price rises to their customers of between 39% and 43%!

This bold (but possibly necessary?) move by Amazon, in the middle of the worst cost-of-living crisis in a generation, was defended by them stating it's their first in the UK since 2014, partly due to inflation, which is at a 40-year high.It also brings about the question of businesses not being able to access goods at reasonable prices which in turn, starts a snowball effect of not being able to complete customer jobs or on sell services and products and a host of other new consequences to businesses.Providing a great customer service and running a profitable business is perhaps the most significant challenge to SME's when price inflation and volatility are on the rise.

In the past year Tidy has noticed more customer growth, among businesses who have suddenly found themselves requiring better software to manage this volatile era.

Happy clients are the backbone of any business, (our and yours). For instance, our mandate is to bring together people and the products and services they provide in business through modern technology. In turn we see this helping businesses to deliver a superior customer service over their rivals.If you have views, thoughts or would like a discussion on this topic, we would love you to hear from you.

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Published Date:

August 22, 2022

Read Time:

3 minutes


Team Tidy