Supply chain impacting small businuess in the Pikes Peak Region
COLORADO— The supply chain crisis is impacting small businesses in the Pikes Peak Region as business owners continue to have a hard time getting supplies and inventories on their shelves.
“Every step we take is three steps sideways in a different direction,” said Studio Q owner, Lauren Ripko.
The Pikes Peak Small Business Development Center told FOX21 the supply chain crisis is making it harder for small owners to get the products they need while prices for those goods continue to surge. They also predict consumer spending for small business is going to be lower this year.
“It’s the first time small businesses are not the economic stronghold they have been in the United States,” weighed in Dr. Shawn P. Murray, consultant with the PPSBDC.
The disruption is now forcing small business to get creative. La Henna Boheme in Manitou Springs is doing what they can to make sure their inventory is in stock by the holidays season after seeing delays in their products like jewelry and incense.
“The owner has been ordering things for 8-9 hours a night making sure we have back stock,” said store manager, Janine Choung.
Ripko’s business specializes in event planning, she’s had to make changes to her business model after she broke even on several events.
“I added a clause in my contract that states if supplies or inventory wasn’t available at the price that was quoted then we would go back to the table and renegotiate the final amount due and the protects me so that I don’t eat the profit,” said Ripko.
Other shops like Terra Verde in downtown Colorado Springs took a gamble and ordered inventory months in advance.
“We are so happy that in January we decided to go for it and order what we thought we could sell,” said owner Leah Riehl.
Murray also added this means consumers like you need to prepare to pay 20% to 50% more on products as we head closer to the holiday season and prepare for more small business models to change.
“Small business are going to have to adapt, so you’re going to tighten belt more or wait until you can afford or you actually need the things you’re looking for,” said Murray.