The pressure is building on President Donald Trump to deliver on his promise of lowering prices. Some business leaders, though, say stability matters just as much as affordability.
“Donald Trump has not kept his promise that on Day One, prices will start going down,” said Senate Minority Leader Chuck Schumer.
“Prices went up 3%. The price of groceries went up. The price of buying a car went up.”
Rising costs have frustrated many, but “Bar Rescue” host Jon Taffer warns that unpredictable price swings can be even worse.
“We can’t survive when the prices are going up and down,” Taffer said on “The Big Money Show.” “You can’t run a business that way because you can’t boomerang your customers in that fashion.”
Taffer believes businesses can handle higher costs, as long as those costs stay steady.
“If stability is at [the] current level, so be it. We can build our business models around [the] current level,” he said. “What we can’t build a business model around is a lack of stability. That’s what’s killing us all.”
The cost of everyday items like eggs, milk, and coffee has skyrocketed recently, adding more pressure on small businesses.
“Restaurants can’t spend more than 33% of their revenues on food costs,” Taffer explained. “If my burger goes up $3 in price, I have to charge you $9 more for that burger. That creates a resistance at the customer level.”
Labor, insurance, and energy costs are rising too, making it harder for businesses to keep prices affordable. In response, President Trump has introduced a plan that includes tax cuts, reduced government spending, and increased oil production to help bring down costs.
Taffer agrees that lowering costs is crucial but says it must be sustainable.
“Sustainability and predictability I think is the most important things that Trump needs to bring to the marketplace,” he said.
For businesses, it’s not just about cheaper prices—it’s about knowing what’s coming next, Taffer concluded.