Adjusting to Cost Increases

• 1What is the most likely step that you would take to pay for this 5 percent payroll cost increase? Would you:?
• 2What is the most likely step that you would take to pay for this 15 percent payroll cost increase? Would you:?
• 3What is the most likely step that you would take to pay for this cost increase? Would you:?
• 4How likely is it that you would borrow or draw down on an existing line of credit to ease adjustment to these higher costs? Is it:?
• 5What is the most likely step that you would take to pay for this 15 percent payroll cost increase that begins next week? Would you:?
• 6How likely is it that you would borrow or draw down on an existing line of credit to ease adjustment to these higher costs? Is it:?
• 7Approximately what percent of your total business expenses consists of payroll, i.e., the cost of wages and benefits? Would you estimate that your payroll constitutes ______ of total business expenses?
• 8How difficult is it for you currently to attract and keep qualified employees? Is it currently _____ to attract and keep qualified employees?
• 9What is the most likely step that you would take to pay for this 5 percent physical facilities cost increase? Would you:?
• 10What is the most likely step that you would take to pay for this cost increase? Would you:?
• 11What is the most likely step that you would take to pay for this cost increase? Would you:?
• 12How likely is it that you would borrow or draw down on an existing line of credit to ease adjustment to these higher costs? Is it:?
• 13What is the most likely step that you would take to pay for this 15 percent physical facilities cost increase that begins next week?
• 14How likely is it that you would borrow or draw down on an existing line of credit to ease adjustment to these higher costs? Is it:?
• 15Approximately what percent of your total business expenses consists of your firm's physical facilities, i.e., rent or mortgage, utilities and maintenance, etc.? Would you estimate that the cost of your physical facilities constitutes ____ of total business expenses?
• 16How do your current selling prices compare with the selling prices of your principal competitor? Are they ____ than your principal competitor's?
• 17How competitive is the primary market in which your firm operates? Is it:?
• 18Since the beginning of the year, have your total energy costs risen:?
• 19Since the beginning of the year, what type of energy cost increase has impacted your business the most? Is it:?
• 20A(offset to energy price increases) Raised selling prices.
• 20B(offset to energy price increases) Laid off some employees or not filled existing vacancies.
• 20C(offset to energy price increases) Absorbed it with lower earnings or profits.
• 20D(offset to energy price increases) Frozen or cut employee wages and benefits.
• 20E(offset to energy price increases) Cut, eliminated or delayed business investment.
• 20F(offset to energy price increases) Reduced the total volume of energy used through conservation measures.
• 21Which was the single most important step that you took to offset rising energy costs? Was it:?Top 100 question
• 22Do you expect that energy prices will rise or continue to rise throughout the remainder of the year?
• 23How do you plan to compensate for those increases? Is it by:?
• 24Since the beginning of the year, what business cost increases have impacted your business the most? Has it been:?

Volume 1, Issue 4, 2001
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation