Weather forecast - small business operating cost pre-planning with continue rising energy prices
Energy prices continue to rise in Aug 2022, and is expected to worsen in the winter of 2022; rising temperature, the war in Ukraine, global inflation, all contributes to a higher energy price, and especially impactful to the operating cost for small businesses.
From transportation of their daily deliveries, to lights, heating or keeping the AC on, are all impacted by the rising energy price.
Many businesses finds it difficult when there is no cap on their energy bill in these time, because they would get billed at the end of the month or a quarter. But they would set their prices of products or services, at the beginning or changes their prices. There is no guide for them to budget or set their prices, so at least they could offset some of the cost to their customers.
“Landlady gives up pub as quarterly energy bills near £30,000 The lack of a cap for firms means "they can't predict from one month to the next what that bill is going to look like", said Hannah Essex, co-executive director of the British Chambers of Commerce (BCC).”https://www.bbc.com/news/business-61743920
This example shows the importance to be able to forecast, to estimate with accuracy of the bill they will be hit with, which then will allow them to pre-plan, and adjust their own prices to keep their business afloat.
