One of the most important things businesses can do during inflationary times is to revisit their pricing strategies and become bit more dynamic. 

We understand all businesses are different.  However, ask yourself these questions:

1) Can we price CERTAIN products/services based on the value we provide vs the input of labor?

2) Can we stop being the 0% bank for slow paying customers by attaching an interest rate to items that are not paid for at delivery?

At Anomaly, we strongly believe many businesses need to stop financing for their customers at 0%.  Some things are uncontrollable but there are numerous cases where attaching the LIBOR rates to your contracts could help you hedge inflation.

Investing in technology can also be an effective way to improve gross margins during inflationary times. 

By automating processes and streamlining operations, businesses can reduce costs and increase efficiency.  There is certainly an up front investment here BUT over a 5 year period, most stats show that businesses that invest in tech infrastructure and R&D end up with a lower cost profile.

For example, implementing a customer relationship management (CRM) system can help businesses better manage their customer interactions and improve retention rates, while also reducing the need for manual data entry and other time-consuming tasks.

Outsourcing non-crucial functions can also be a smart move during inflationary times as you can drastically cut down on the full time cost of labor for functions that are not crucial to daily operations.

What do we see our clients outsource?

• IT 
• Human Resources
• Accounting (shameless plug)
• Customer Support

Diversifying the supplier base can also be an effective way to improve gross margins during inflationary times. 

By working with multiple suppliers, businesses can compare prices and negotiate better deals, which can help offset rising costs. Additionally, having multiple suppliers can help mitigate the risk of supply chain disruptions, which can be particularly important during times of economic uncertainty.

In a service business, we don't think you need to chase shiny "tech".  However, each year examine all of the tech subscriptions you have any whether there are newer more competitive options in the market. 

Finally, focusing on customer retention can be critical during inflationary times. By keeping your existing customers happy and engaged, you can reduce the need to spend money on costly marketing and advertising campaigns to attract new customers. 

Additionally, loyal customers are more likely to increases their spend with you (increasing GM) and refer other like minded customers!

Take a look at your Gross Margin Year over Year and let us know if you want to talk shop!