I reported last week that the Consumer Price Index (CPI) numbers had remained almost the same with the CPI holding steady at 2.7% year over year. But the Producer Price Index (PPI) that recently came out tells a different story with those numbers rising 0.9% in just the month of July to 3.3%.
There are two reasons behind the difference.
First is that companies don’t seem to have passed their cost increases on to consumers yet. Second is that given the length and timing of most supply chains, many of the pricing increases haven’t yet made their way to consumers.
Highlights of the PPI Report include…
1 – Prices of Goods increased 0.7% in the month.
2 – Services went up 1.1% in July.
3 – Manufacturing Equipment prices rose 0.4% last month.
4 – Services related to Manufacturing Equipment rose a staggering 4.5% in July alone.
5 – And the Materials used in Durable Goods Manufacturing rose 1.3% in a single month.
Let me leave you with this…
Many want to act like tariffs aren’t inflationary. Some might even try to convince you that someone else will foot this bill, but don’t be deceived.
My single and solitary point in writing this is the fact that we’re all going to pay. No one will be immune.
I talk to many entrepreneurs on a daily basis. Some are doing great. Others aren’t. But many seem so beat up and downtrodden that they sound like they’re ready to pack it in and go get a job somewhere.
Perish the thought my Brothers and Sisters. Perish the thought.
It’s time for everyone to dig a hole, shoulder a weapon, and say, “Not today. Today I hold the line. No matter what, the enemy shall not pass.”
Entrepreneuring isn’t easy. If it was, every Tom, Dick, and Harry would be capable. But few are chosen and fewer still are able.
Those of you who are doing poorly need to figure this thing out and get it done. Whining and crying about it, will do nothing. Dealing with your cost issues and maintaining your margins is the only way to handle this situation. I repeat.
It’s the only way.
If you don’t, what’s the alternative? Closing down, firing your employees, auctioning off your equipment, and going to work for someone else.
And why? What would the reason be for going through all of that pain for you, your family, and your employees?
Why would you when there’s an alternative?
Let’s not act like I haven’t been there. We’ve all been beat down before. As an Entrepreneur with 36 years under my belt, I’ve taken these businesses through war, famine, death, pestilence and every imaginable nightmare known to man or beast.
If there’s one thing I’ve learned in those years, it’s the fact that there’s always a solution. Always. You just have to figure it out, and get it done.
If you don’t, your competitors will. And their reward will be all of your customers.
The ugliest part is that this hasn’t really begun yet. We’re still in the opening salvos of this fight.
So suck it up Marine. Find your happy place. Dig that hole, shoulder that weapon, and get it done.
But do so knowing that I’m right there with you. We’re shoulder to shoulder in that hole. You’re not in this thing alone by a long shot.
If you need to talk, you know my number…
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.SalarySolutions.net
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