Marketplace Small businesses walk an affordability tightrope
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Dec 5, 2025 Justin Ho, a Marketplace reporter, shares insights from small business owners struggling with rising costs and slim margins, exploring their tough choices to maintain customer affordability. Samantha Fields dives into the potential Netflix-Warner Bros deal, highlighting concerns about reduced content variety. Clay Masters discusses Midwestern farmers venturing into oat production and establishing a local mill, aiming to diversify markets. Each segment weaves together the intricate challenges faced by businesses in today's economy.
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Affordability Drives Business Choices
- Affordability is the dominant theme shaping consumer behavior and small-business decisions right now.
- Businesses balance lower prices against shrinking margins to keep customers while staying solvent.
Small Businesses Sacrifice To Stay Affordable
- St. Hilaire Finn kept preschool tuition flat and considered unbundling extras like soccer and yoga to lower base prices.
- Randy George moved his bakery to cheaper space to store flour and avoid trucking costs to keep customer prices reasonable.
Unbundle Services To Lower Base Price
- Offer optional add-on programs instead of bundling them into the base price to lower the initial cost for customers.
- Use a la carte pricing to keep enrollment high while preserving some revenue from optional services.