Inflation is a word that you hear on the news from time to time, but most people don't know what it means. In this article, we will talk about inflation and how it affects tattoo artists in particular. Normally, we recommend raising your prices by at least 5% each year so that your prices keep up with inflation and your growing skill level. However, the strange economic conditions resulting from the COVID-19 Pandemic have caused inflation to soar higher in the recent year. Recent news suggests that if you haven't increased your prices by 10% or more in the past year, you could soon be experiencing a significant strain on your finances.
What is 'inflation' anyway?
Inflation is the rate at which prices for goods and services increase. In other words, inflation is a measure of how fast the cost of living goes up. The inflation rate can be affected by a lot of different things like wars, natural disasters, or changes in government policy.
The inflation rate in the United States has been relatively low. In recent years, inflation has been hovering around at a rate of about 2-3% every year, but reports say that inflation is spiking to 6-7% annually.
What can I do about it?
With this in mind, we recommend that tattooists and studio owners consider adjusting their pricing strategy. This inflation will likely continue, and you're already feeling the effects. If you want to see how inflation has decreased the value of the revenues you've generated from tattooing, you can use this simple online inflation calculator.
This article is for informational purposes only and is not meant to constitute financial advice.