Vancouver’s small businesses are more likely to absorb price increases than pass them on to customers, compared with their counterparts in Toronto and elsewhere in Canada.
That was one of the findings of the just-released American Express small business monitor.
The report found that 53% of small businesses in Vancouver absorb price increases rather than risk customer loyalty with price hikes, compared with 47% expressing that opinion nationally and 46% in Toronto.
The report also found that more Vancouver small business owners (75%) have observed negative customer reaction to price increases compared with Toronto small business owners (68%).
It further found that more Vancouver small business owners (88%) take actions to make price increases acceptable to their customers, compared with their Toronto counterparts (79%).
At the national level, the report found 47% of Canadian small businesses say their financial position has improved in the past three months – a 14-point jump from the prior quarter.
“It was very encouraging to see that the percentage of small businesses that are reporting an improvement in their business’ financial position has improved,” said Eric Nielsen, vice-president and general manager, small business services, American Express Canada.
The survey further found that 74% of Canadian small businesses feel they could weather another recession, if necessary. The report was based on an online survey of 720 Canadian small business owners.
Jenny Wagler
Twitter: JennyWagler_BIV