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Increase in the price of goods causing Central Coast businesses to raise prices

Posted at 5:43 PM, Oct 17, 2022
and last updated 2022-10-17 22:35:02-04

The price of goods is increasing rapidly, forcing a Central Coast distillery to hike up prices for the second time this year.

"Small business owners are the canaries in the coal mine right now," said Aaron Bergh, Calwise Spirits Company Owner, and Distiller.

Suppliers are warning of cost increases once again.

"We're feeling the inflation a lot sooner than they're feeling it and when they do feel it, unfortunately, we don't have a choice," said Bergh.

A bottle of gin now costs 20% more to produce making drinks at the distillery even more expensive, according to Bergh.

"So the molasses that I use to make my run is 30% higher than it was year over year. The sugar I use to make my liqueurs is 20% higher than it was year over year and bottles are costing me 30% more," said Bergh.

Community members are noticing the price increase.

"Well going out to eat you know, prices have definitely gone up. I think the prices of goods have gone up as a whole," said Andrew Brune, Paso Robles resident.

"Oh, horrendous. I mean anywhere from 20-40% on items I buy daily," said Ron Greenwood, Paso Robles resident.

Customers say to make up for the high prices they are going out less often, worrying small business owners.

"We're the only gluten-free bakery in San Luis Obispo County," said Debbie Wicks, Bless Your Heart Bakery Paso Robles Owner.

Wicks said she worries about being able to stay open and cater to customers with dietary restrictions as prices continue to soar.

"I worry about my employees, I worry about my business, I worry about being here next year," said Wicks.

From flour and eggs to bags, Wicks said the price of everything they buy has increased, forcing them past the costs onto customers.

"We won't be able to withstand it. I just had to price my bags because the cost is so high," said Wicks.

Begh said the increase in the price of goods can be traced back to high gas prices and increasing shipping costs.

Small business owners say while they don’t want to increase prices, they have no choice too in order to keep up with inflation.