Rising Prices Hit Small North Texas Businesses On Many Sides
ARLINGTON, Texas (CBSDFW.COM) - A few cents here. A few dollars there. And soon inflation begins to take a noticeable toll on take-home pay.
At some point, those rising prices impacting how and where we spend.
And small businesses that depend on discretionary spending know that well.
"I worked 45-50 hours a week, five days a week," says Richard Spiva, co-owner of Nicole Louis Salon in Arlington.
But that was before COVID-19.
In the two years since the pandemic shut down offices and face-to-face businesses Spiva says, "I've lost a third of my clientele. (It's) been absolutely devastating to our income."
Now, Spiva and his wife, co-owner Lisa, are cutting the hours at the shop. Lisa is also working another job.
"When all the jobs went home and everybody was working at home for weeks or months, they weren't getting their hair done anymore," explains Lisa.
"It has not come back on iota for us," says Richard, "not yet."
Now, supply chain challenges are increasing the costs at the shop, while their customers navigate rising prices everywhere else.
"Gasoline has gotten so expensive," said Vin Rogers before easing into the stylist's chair. "Grocery shopping. Cable TV. My phone bill. I'd like to be able to tell you what hasn't gone up!"
The Spivas haven't raised their prices in spite of cost increases, but they do suspect that inflation is forcing some customers to reconsider how often they can spend on those little extras, like a trip to the salon.
"Well, you know, people who are being squeezed by inflation, they're going to do what they have to do-- not what they want to do," says Professor Mike Davis, an economist at SMU's Cox School of Business.
Davis is cautiously optimistic that aggressive Federal Reserve action can eventually help curb inflation.
Until then, he says the rising prices will mean some tough decisions in some households.
"You have to buy gas, you have to buy groceries. You don't have to take the kids for ice cream," says Prof. Davis. "You don't have to go to the nail salon and lots of other sort of fun, discretionary things. So the people who provide those services. I have a bad feeling they're going to suffer a bigger drop in business than maybe some other places."
"It's been brutal," says Richard. "It's been brutal for us. It really has."
"Just trying to survive," adds Lisa.
