After the coronavirus put the brakes on the Chamber's annual Community & Business Awards, originally scheduled in late April, we are moving forward for a presentation of the awards on Thursday, October 8 at 4 pm. The nomination period will be open until Tuesday, September 8 at 5 pm, so please submit your nominations before the deadline.
We all know people, organizations and businesses that contribute to our great community, why not spend a couple of minutes to honor them with a nomination? The categories are:
You can download a nomination form here, or click for the online form.
In case you missed it last Thursday, Oxnard's Mayor Tim Flynn delivered his annual address to the business community with a theme of Rebuild, Reinvest, and Revitalize. Although these are difficult times to be optimistic, Mayor Flynn's message was pragmatic about where the city needs to go in order to deliver services to it residents and businesses. The recorded presentation can be accessed here.
The Chamber sincerely thanks our sponsors for supporting this broadcast:
Free webinar from industry experts
PPP loans have been a lifeline for many small and medium size businesses during the COVID pandemic. Now that most of the funding has been released, it's time for loan recipients to think about getting the most loan forgiveness to keep that capital in our local economy.
The Oxnard Chamber has arranged for two experts to deliver a free webinar for PPP borrowers. Timothy A. Jones, Executive Vice President with Umpqua Bank, will address the SBA process to apply for forgiveness. He has become the bank's authority on PPP loans. Andrew Kiefer, CPA and Managing Director for CBIZ MHM LLP, will address accounting for applicable expenses and potential income tax consequences.
The webinar will be held on Thursday, August 13, at 1:00 pm. Click here to register.
GO-Biz is offering a series of free webinars to explain the application process for California Competes Tax Credit (CCTC) application. The next CTCC application period began on Monday, July 27, 2020, and there is $80 million in tax credits available for businesses to claim.
The California Competes Tax Credit is an income tax credit available to businesses that want to come to California or stay and grow in California. Tax credit agreements are negotiated by GO-Biz and approved by a statutorily created “California Competes Tax Credit Committee,” consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, and one appointee each by the Speaker of the Assembly and Senate Committee on Rules.
The application can be accessed at www.calcompetes.ca.gov, and the application period closes on Monday, August 17, 2020, at 11:59 p.m. Pacific Time; at the time of the deadline, the application website will automatically close.
Those interested in attending an informational webinar have a variety of dates to choose from:
July 29, 2020
Details and Registration
August 6, 2020
Details and Registration
August 11, 2020
Details and Registration
The impact of COVID-19 will go well beyond the pandemic itself, with serious effects expected on the global economy as well as on people's lives. During periods of economic downturn, people's incomes are limited, and their spending habits change significantly. To stay afloat and retain customers, some businesses will choose to revise their prices and fees downwards. Naturally, with the stiff competition that characterizes many markets, you may be tempted to follow suit. Even as you strive to make the right decisions for your business and customers, it would be important to understand the visible and hidden negative effects of lowering prices.
The negative effects of lowering prices
The negative effects of lowering prices can be categorized into visible and hidden outcomes. The visible effects related to profits and sales volumes. While a good number of business owners think that lowering prices will help to drive sales, the move can lower your profits by a significant margin. Reduced profitability will have a huge negative impact, particularly on startups and small businesses. For any business to enjoy the same level of profitability after lowering prices, they will need to sell more products to customers. In a shrinking economy, it may be difficult to sell more than you used to do previously.
Apart from the visible effects, the hidden ones can have a huge impact on your business. Cutting your prices may lead customers to believe that they will get lower quality from you. This notion could affect your reputation as a business that sells high- quality products or services. Another possible outcome is that long-term customers will feel that you have been overcharging them, a factor that could see you lose some of your current customers. In addition, customers who feel that they overpaid will not refer others to your business. You may also not end up attracting more new customers if your competition lowers their prices as well since things will still be the same.
With these effects, adjusting your prices downwards could be counterproductive, effectively dealing a blow to your efforts to drum up business. As such, lowering prices during a recession would not be a smart strategy.
What you should consider doing
To help you get through the tough times, there are several steps that you can consider taking. With declining demand, you will need to come up with smart and innovative ways of keeping your business going. If you only handled big projects in the past, it would be time to consider taking on smaller projects with smaller budgets. Taking on smaller projects will not only keep you going but could also earn you new customers. Another option would be to provide free consultations while maintaining the prices of your products and services at the same level. Since the price is defined by the value that customer enjoy, you can also choose to increase price and value simultaneously. However, this will require that you pick the right time and decide how much to change the prices. In the end, you will want to make changes while ensuring you encounter the least resistance from your customers.
In the long run, the pandemic will ease off, and the global economy will rebound. However, adjusting prices can have long-term effects that will take a long time to rectify. Provided you deliver value to your customers, we recommend that you charge what you believe is a fair price.