Sarah Loates of Derby-based Loates HR Consultancy: “The economy is running hotter than a boiling kettle, and many of our clients, especially those in the manufacturing sector, are being crippled with rising energy and labour costs. As an HR consultancy, we don’t want to add to their woes by increasing our prices. It’s like being in a boat with a hole, where we prudently reduce our costs and bail out the water, while more water seeps in through the hole. Over the past three months we have seen our office lease, energy, salaries, IT, insurance and bank fees all increase. And that’s before the National Insurance increases in April. At some point we will have to increase our prices too, but we are reviewing our pricing model before we go down that route.”
Shirley Leader, director of Petersfield-based woman’s clothing boutique, Velvet & Rose: “The increase in inflation is deeply worrying. Already as a small boutique owner, my energy bill is at a record high. On top of that, it is buying season and we are getting less for our money as fabric prices and duty have increased. We absorb what we can, but at some point something will have to give.”
Michelle Cunningham owner of online boutique Tarelle Accessories: “As an online business selling women’s fashion accessories, our suppliers have increased their prices due to rising raw material costs. On top of that, we import some of our stock from Europe and the shipping costs have also increased. Regrettably, we recently had to pass these costs onto our customers in the form of higher prices in order to keep the business viable. It’s an incredibly challenging time out there right now.”
Lee Chambers, a psychologist at Essentialise Workplace Wellbeing: “As a small business, we are agile and do what we can to mitigate cost increases. While we are well aware we have to play the hand we are being dealt, it’s challenging as there are a multitude of things incrementally creeping up, which puts pressure on those who work with us, and our clients’ bottom lines too. As dynamic and quick-moving as we can be, these things hit our bottom line very quickly and some of our clients are going through a tough time. I’m expecting double digit inflation and for the Bank of England to step in, but I’m not sure it’s going to make much difference. People are trying to stay hopeful but behind the scenes the uncertainty is horrendous.”
Lucinda O’Reilly, director at London-based The International trade Consultancy: “As a sole trader who works from home, many of my business and personal expenses are intertwined. I’ve been making efficiencies and cost reductions in terms of who and where I buy things from and also thinking really hard about how I do things in the most efficient way regarding energy use and car journeys. It takes time and energy away from focusing on growing my business and can be quite soul destroying after a while. But I’m one of the lucky ones, at least I don’t have to make the choice between eating or heating my home as many people are doing these days.”
