Readers says Business will pay for Obamacare ,by raising prices, cutting employee hours or reducing staff
Well I’m sure your clients will be happy to know that you will readily jack up your prices and pass on all of your additional Obamacare overhead costs to them, rather than looking for ways to offset these burdensome regulatory costs by reducing some of your other costs – including reducing staff if that is what it takes to keep your unit prices level.
No one wants to reduce staff, but when faced with the choice of keeping your clients (by keeping the costs of your goods or services at a reasonable level even if it means reducing staff) OR raising your prices by passing on 100% of your Obamacare costs to them and subsequently losing at least some clients which ironically would force you to reduce staff anyway in the long run, the smart businessman will offset the regulatory costs in any way possible.
Besides, when raising prices to your clients don’t you want to keep the increase as profit, rather than raising prices just to pay another government fee?
Not knowing exactly what your “ten million dollar” figure represents – net or gross, sales, income, revenue, etc… and not knowing what market segment you are in, I will go out on a limb and assume that you are talking about some gross revenue number and realizing that 10M in revenue is not particularly large in most markets, I still do not know why you would want to raise your prices – with all of the negative connotations associated with a price hike (especially during an economic downturn) and get none of the benefits (profits)?
Not good business.
No one likes to fire anyone, but sometimes you are forced into this situation and it needs to be done to save the entire business. It is even more disturbing if you are forced into this situation by an onerous government regulation.
You need to decide if you are running a business (no matter how small it is) or if you are running a charity