"Putting prices up in a bad economy is a real BAD idea. Lowering prices to keep the cash flow going so u can survive is the smart way to go.
But if the owner works on a small profit margin to start with and it owes him $5 and the bills and and that other crap that comes with a business keeps coming in, lowering his prices means he will just go broke quicker.
Just in our industry (fresh produce) we had price rises of over 30% on most items, over the year so far, and just got a letter from the bank that all etpos transaction that they charge to me for just accepting your payment will now be 11 cents now instead of 6 cents.Price rise of 90% and told tough luck, cop the $400 rise on the chin.
It is getting harder all round, but at least were still ticking over compared to the rest like USA and some Europe countries who are just about up the creek with out a paddle.
