Written by Condon Associates on 15 April 2011

Suddenly the media is full of articles relating to the impact that the Green targets being imposed on the electricity providers is having on price stability and inflation.

Whenever we force a move away from a ‘natural course of action’ we bring about additional costs relating to compliance. Most businesses are instinctively looking for cheaper ways of providing the same service (or product) or if not the same then as near to it as it can. Therefore prices and costs can be driven down through natural causes.

Notwithstanding this business owners must remember that price is not defined by cost but is a market driven determinate, from this t is the business owners responsibility to ensure that they are able to source and provide their product or service for an amount lower than the sale value. Failure to do so will have them in our door far more expediently that should otherwise be the case!!!

Moving on however the above must be considered by the small business operator with the impending introduction of the carbon tax. Whilst we do not yet know the facts some early information is available and businesses need to consider what the impact may be. Two components released are that the tax is expected to raised $12 Billion, and the Government expects to provide individual taxpayers with compensation in the order of $6 Billion. So let’s consider the potential impact of this in the market place:-

Clearly this must be an issue that SME’s keep a lot of attention on. The final result will be one that they must be fully across, so that adequate preparation and planning can be conducted so as to maximise sustainability.

PLEASE NOTE: All information contained in the articles below was correct at time of publishing.