Bay Area small businesses struggle with high price of upholding high quality as inflation rises

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A bakery in Martinez, for example, wants to produce the same high quality cakes their customers expect. But the inflation of key ingredients, has made a recipe for dissatisfaction over increased prices. It's a balancing act many are struggling with.

Beef and chicken especially have created distress for consumers at meat markets and grocery stores.

Lund says they normally receive strong reviews about their cakes. However, recently they said they got their lowest online review -- because of the cost. He says they always have to walk a fine line to help grow their business and make their prices good for customers. A big hurdle is competing with bigger businesses.

"The bigger businesses, they get a lot more discounts because they order a lot more stuff," he said."We can't order that much stuff, so we are paying a little bit more for the quality products."It's a similar issue for Quin McCormick, the owner of Leather and Moss Mercantile. She says she is always trying to determine the prices for her products.

"There is definitely a lot of math, and a lot of planning and strategizing and comparing to previous months," she said."You definitely have to be aware of what your purchase price is and what your mark up is, and what people are comfortable buying at, especially in your area."

 

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