urgent matter, read asap.

Yes

OK I keep explaining this and people seem to have a hard time grasping it. Although obviously its a bad idea to extrapolate an entire economy from my personal SL circumstances, I think my scenario is a fairly common one for a percentage of business owners.

1. I rent land to house my businesses.
2. I pay my rent for this land in Lindens.
3. My landlord charges me the Linden equivilant of his US$ rental rates every month.
4. In February I paid 8200L in rent. In March I paid 10400L in rent. In April I expect to pay even more as the exchange rate continues to plummet. The net result is that my profits decline and it becomes less and less attractive for me to have a SL business.

This cuts into my profits. No, the +/-2K jump from Feb to March isn't huge, but the point is that we're looking at a trend. Every month it becomes more and more expensive for me to cover my overheads while my sales volume remains consistant.

My choices are therefore:

1. Decide I don't care about making money as long as I break even, and keep my prices the same.
2. Raise my prices to keep my profit level consistant and hope I don't lose sales.

If I owned the land, I'd be in much the same position because I would have to convert L$ to US$ to pay my tier, at a terrible rate.

The economy as it stands is good for consumers but really hurting businesses. How long do you think it will be before we hit that particular tipping point and people just start closing up shop because the squeeze is too tight to sustain profit?

Then complain to the people selling. Because I personally have no sympathy.

Do you have any idea how many sob stories I hear?

Sabrina,

Raise your prices when you think it's time for an adjustment. Everyone else will be too. Not all at once but aggregate Linden prices will go up. Lindens are cheaper now so really you aren't raising prices in a way that would cut demand.

I know that I'm going to soon kick my prices up about 10% on all my items, and increase the amount I pay my employees by 10% too. If the linden gets stronger, I'll cut them back down.

The interesting thing about this inflation is that the only net effect it's going to have is on people with large Linden reserves, and on stipends. The more inflation there is, the less that stipend is worth. So to all the pro-stipend-cutting people, not to worry, it's taking care of itself.

I'm not raising my prices. Ever.

Maybe Ill start selling alternatives to what you sell at higher rates..then my sales will continue upward, and I will take some of your business form you.

It's happening as we speak.

It's a normal evolution of economic circumstance.

Raise your prices... You can't fight The Market forever...

Perhaps.
I own my land. I pay for it with LindeX trading. My profits haf been reduced by less than the market has changed because I've lowered a few prices to tip over volume. Adapting to a market isn't always straightforward.

Why don't you just start selling alternatives at a lower price than I do, right now? The net effect is the same. Failing to raise your prices in an inflationary environment is the same as cutting your prices in a stable one.