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Writer's pictureMaxGroup Business

Dealing With Rising Supply Chain Costs


Business Owner

Running a business is taxing enough without the stress of worrying about whether you’ll be able to afford the necessary supplies and equipment to produce your product. The last two years of national challenges have presented us with unprecedented levels of struggle, unforeseen circumstances, and regulated constraints that make daily productivity difficult to maintain.


And now the challenge of supply chain issues!

Recent supply chain issues have placed yet another challenge in front of us. Shortages, increased prices, and long wait times in between shipments are causing issues across the globe as we wait—not so patiently—-for the materials and supplies we need to keep our businesses afloat. With many of us unwilling or unable to pass these increased prices along to our valued customers, keeping a positive attitude about business building can be challenging.


We’re all in this together

Take much comfort in the fact that we are all in this together, pivoting and finding solutions to this new “normal.” Embrace the difficulty, channel your creative energy, and take these tips to heart as you work your way through supply chain costs and see consistent and lasting prosperity.

  1. Negotiate with suppliers Our suppliers are also at capacity, yet they need your business as much as you need theirs. If you can increase volume or reduce range, you’ll become a more attractive customer that your suppliers may be willing to negotiate with. Think about what you can offer them that would distinguish you from other customers, and work out a mutually beneficial plan so you can keep moving forward.

  2. Recreate your product line Consider changing your product offerings to meet customer demand. Customers are also looking for ways to cut corners right now; if you reflect that with the development of products that meet both quality and price points for them, you’ll keep your valued customers while keeping your bottom line in check.

  3. Move production if needed It may be time to move your operation from offshore to somewhere closer to your home base. The cost of energy, labor, and shipping can be more expensive if you outsource to China or Taiwan; look for local manufacturers that you can do business with to save a few dollars.

  4. Look for ways to improve efficiency One of the single most significant things you can do as a business owner is to take a thorough inventory of costs vs. revenue. Understanding all aspects of your financial flow will allow you to make improvements to your daily operations to reduce unnecessary spending and make purchasing more efficient. As you free up funds, you’ll be able to allocate to places that need attention, improving your financial status with every step.

  5. Consider exploring new markets Markets that are saturated with competitors and those without disposable income are difficult to lock in. Consider looking to non-traditional markets as you sell your wares. You may have to look out of the country to find untapped populations, but a little time spent researching could potentially yield you thousands of dollars in sales. Finding and satisfying a customer is the bottom line. As you develop relationships with new clients, focus on building trust and staying attuned to their needs, and your business will grow naturally.

In it to win it!

We’re in this with you! MaxGroup Business Solutions has strategies for business success that supersede current market challenges. We know the ups and downs of the business market, and our seasoned professionals can provide you with tips and cutting-edge marketing strategies that will get you through tough times. Contact us today to see how we can improve your current business practice and realize your dreams. Visit www.maxgroupbusiness.com for more information.

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