A Phoenix Area Business Is Struggling To Attract Employees, Some Are Forced To Raise Prices PHOENIX (3TV / CBS 5) – A local barber shop is one of several companies in the Phoenix area that are increasing their prices to attract employees to keep up and keep up with competitors. “This morning we emailed all of our customers letting them know we were raising our prices,” said Jacob Meltzer, owner of Keep It Cut in Phoenix. “It’s really just a reflection of the market at the moment. We want to keep our current employees and attract new stylists to the shop to make sure we have the best talent.” Keep It Cut has eight locations across the valley and hasn’t increased its prices since 2017. Right now, the increase is around $ 1 to $ 2 per service. “We had already started looking before Covid and when everything was true, we decided: ‘Let’s wait; our customers are not able to afford anything more at the moment, let’s wait until everything has been cleared up.’ Now we are at this point, “explained Meltzer. “When we interviewed new employees, we just found we couldn’t get all the hires we wanted because the people we interviewed said, ‘Oh, my managers gave me a raise, the company just gave me given a raise, so I “‘stay where I am.” “Meltzer said they were fortunate enough to avoid layoffs. They have about 60 employees in total, but need about 10-15 more.” We have like that few staff. And the number of applications alone is so low compared to before, “said Meltzer. The state director of the National Federation of Independent Business (NFIB) says this is a growing trend. He says when it comes to small businesses They have limited options when it comes to increased spending. “They do not necessarily have access to the capital credit market like large corporations, and small business owners will inevitably look like larger corporations are in debt, “said Chad Heinrich of the NFIB. “When they face increased costs, which is a huge amount of work for a small business, they have to raise prices because there really is nowhere else to go. If they have to raise wages, they will in turn raise prices. “” A big issue for small companies is also competition with unemployment benefits, adds Heinrich. “We have accepted the additional pandemic aid from the federal government, so that our unemployed have considerable amounts above normal unemployment benefits, “said Heinrich.” Several people who are available simply make an economic decision at this point and say, ‘I can earn more on unemployment insurance than if I can go back to work.’ “Although the price increase at Meltzer is not significant, he believes it will be enough to keep his current employees and hire new ones. Meltzer says he has received mixed reviews from customers so far, but he says that most understand this and willing to continue to support small businesses. “We have always tried to be people-oriented To be a well-established company by offering full social benefits, good wages and ensuring that we take care of our employees, and our customers appreciate that. I appreciate it. “Copyright 2021 KPHO / KTVK (KPHO Rundfunkgesellschaft). All rights reserved.
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