“The increases in our day-to-day life just keep becoming more and more apparent,” said Daniel Bosman, the owner of Daisy Chain Coffee.
DES MOINES, Iowa — Over at Daisy Chain Coffee and The Purveyor, workers are pouring a glass — or a cup — of a harsh reality.
“A lot of stress to take on if you’re trying to run a small business,” said Daniel Bosman, the owner of Daisy Chain Coffee in Des Moines’ East Village.
That reality, he says, is his day-to-day being impacted by the rising costs of goods and services he needs in order to keep things running.
For Eva Lavalle, the owner of The Purveyor, not only are those costs going up, but margins are shrinking.
“I think it’s affecting everybody at some level, but small businesses certainly feel the impact greatly,” Lavalle said.
What’s impacting Bosman the most right now is something he’s bracing for: rising healthcare insurance premiums. If Congress doesn’t extend Affordable Care Act enhanced tax credits that are going to expire at the end of 2025, costs could skyrocket.
“We’re in the $900 a month range now,” Bosman told Local 5. “I believe we’re going to be in close to a $1,400 a month range.”
As for Lavalle, tariffs on wine and other products she orders are changing the game.
“Products that we wanted to use, or previously thought were attainable at a certain price point, no longer are,” she said.
The combination of premium hikes and increased tariffs aren’t a mixture these small businesses want to serve to the table — but they’re met with a few different ingredients to balance.
“Cost of goods grow, which means margins shrink. Then if that happens, you have to raise the price of goods, but then you have less traffic,” Lavalle said.
At the end of it all, businesses have to make a choice. For some, that choice is raising the price of the goods they sell.
“It all kind of contributes just to the price of your latte being a little bit more expensive,” said Bosman.