When I saw that bakery franchise Brumby’s had been caught red-handed trying to blame a price rise on the carbon price, one thing came to mind: Who would be silly enough to write this stuff down and get caught?
It’s fair enough to raise your prices in response to the carbon tax and I could certainly see why a relatively energy-intensive retail store like a bakery (those ovens don’t run on icing sugar) would need to pass on some costs to consumers.
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But trying to disguise a broader price rise and “blame” it on the carbon price? Sorry, that’s not on.
I reckon the ACCC is going to make a bit of example of Brumby’s, particularly given its got a letter to franchisees to prove its case.
If you need to raise your prices in response to the carbon tax, be sensible about it.
Do your research, figure out to the best of your ability which costs are going to rise and then decide on the price rise you need to pass on.
Be prepared to explain to customers the reason for the price rise. I reckon the more transparent you can be – that is, the more background info you can share – the better.
But don’t make sweeping statements – and let them get into the press.
Get it done – today!