Adjusting to Cost Increases
» Adjusting to Cost Increases, Volume 1, Issue 4, 2001
Suppose again that you faced a 5 percent physical facilities cost increase, but instead of coming in six months, it would occur next week.
11. What is the most likely step that you would take to pay for this cost increase? Would you:?
| Response | ||||
|---|---|---|---|---|
| 1 | Raise prices | 16 | ||
| 2 | Lay-off some employees or not fill existing vacancies | 7 | ||
| 3 | Absorb it with lower earnings or profits | 54 | ||
| 4 | Freeze or cut employee wages or benefits | 4 | ||
| 5 | Cut, eliminate, or delay business investment | 9 | ||
| 6 | Combination of steps | 0 | ||
| 7 | Do nothing | 5 | ||
| 8 | Go out of business/Sell the business | 0 | ||
| 9 | Change location | 0 | ||
| 10 | Other | 2 | ||
| 11 | DK/Refuse | 4 | ||
| Total (%) | 101 | |||
| N | 385 | |||
Notes: Sixteen (16) percent of small employers faced with a 5 percent physical facilities cost increase in the next week would raise prices as their first action in response (Q#11).
