Adjusting to Cost Increases
» Adjusting to Cost Increases, Volume 1, Issue 4, 2001
Suppose your physical facilities cost increase was going to be 15 percent next week rather than 5 percent?
13. What is the most likely step that you would take to pay for this 15 percent physical facilities cost increase that begins next week?
| Response | ||||
|---|---|---|---|---|
| 1 | Raise prices | 22 | ||
| 2 | Lay-off some employees or not fill existing vacancies | 14 | ||
| 3 | Absorb it with lower earnings or profits | 27 | ||
| 4 | Freeze or cut employee wages or benefits | 4 | ||
| 5 | Cut, eliminate, or delay business investment | 13 | ||
| 6 | Do a combination of steps | 1 | ||
| 7 | Do nothing | 3 | ||
| 8 | Go out of business/Sell the business | 2 | ||
| 9 | Change location | 3 | ||
| 10 | Other | 5 | ||
| 11 | DK/Refuse | 6 | ||
| Total (%) | 100 | |||
| N | 385 | |||
Notes: Twenty-two (22) percent of small employers faced with a 15 percent physical facilities cost increase in the next week would raise prices as their first action in response (Q#13).
