108 - An inflation Explanation

Did you know our inflation rate in the United States is at a 40 year high? If you’re a consumer, you’ve felt the impact of inflation. If you’re a business owner, you’ve felt the impact of inflation tenfold. So, we all know inflation is happening – but do we know why? In this episode, we break down what inflation actually means, the effect it has on business owners today, and the best strategies you want to implement to adjust to it. Inflation isn’t going anywhere any time soon – listen to this episode today to learn how ignoring inflation, or not taking swift and proactive measures to adjust to it, can jeopardize the future of your business.

Show Notes

  • 00:00 - Intro

  • 00:30 - Jeff Finney’s “In-Theory vs. In-Practice”

  • 02:30 - What’s Inflation?

  • 05:55 - The Rule of 72

  • 07:30 - Inflation in the 70’s vs. 2022

  • 10:30 - Inflation in Real Estate

  • 13:40 - Uncertain Inflation Strategy - Crypto

  • 17:20 - Uncertain Inflation Strategy - Real Estate

  • 19:40 - Uncertain Inflation Strategy - Loans

  • 21:11 - Bad Inflation Stategies For Contractors

  • 26:00 - Good Inflation Strategies For Contractors

  • 30:00 - Efficiency Is The Best Defense Against Inflation

  • 42:00 - Moving To Higher Margin Work

  • 46:00 - Why You Can’t Afford To Not Be Confident

  • 48:00 - Outro



Quotable Moments

  • “Inflation is a general price increase on labor, goods, and materials in response to increase of the money supply.” – Martin

  • “There’s 37% more money in the United States today than there was 1 year ago. Meanwhile, the gross domestic product only went up 5%.” – Martin

  • “Chasing more sales as a hedge against inflation is just compounding the problem and digging yourself into a hole.” – Khalil

  • “Even though the number in your bank account is going up, you can’t buy anything because the money is worth less.” – Martin

  • “If you’re not paying employees more because of inflation, then you’re going to lose those employees.” – Khalil

  • “Personal savings for individuals have increased $380 billion since before the pandemic.” – Martin

  • “There’s no better time to raise prices because your customers are most likely expecting it – they’ve heard of inflation.” – Khalil

  • “Don’t wait – if you’re the last contractor to increase prices then people are probably going to push back on it because you waited too long to do it.” – Khalil

  • “If you start tracking things, then you can start fixing things. You have to be more efficient with time, money you have, and costs that you’re incurring.” – Khalil

  • “Do it, or perish.” – Martin

  • “You need to consider which work has higher margins and you need to pivot to that.” – Khalil


Resources


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107 - Software Q/A