Ever wonder what the government is really up to with inflation? If you’re like me, you might imagine a room full of economists plotting with whiteboards and coffee cups, trying to figure out if higher prices on avocados are worth more or less than gas prices going through the roof. Welcome to the tangled web of price controls—where good intentions can sometimes leave a mess of unintended consequences, especially for small businesses and studio owners who are in it to build something real.
For anyone trying to run a profitable studio, the government’s answer to rising costs usually sounds something like this: cap prices! Fix rents! Control the madness! But before we start cheering for capped prices on every supply you rely on, let’s pause and take a leaf from Thomas Sowell’s book Basic Economics. His point is clear: while these fixes sound like lifesavers, they can quickly become sand traps.
Here’s the deal: when prices are capped, landlords, producers, and even your suppliers suddenly lose their incentive to keep quality high or make those small improvements that keep things running smoothly. Why put in the extra energy if you’re not seeing any extra income for it? It’s a classic case of, “If it’s broke, don’t fix it.” And for those of us running studios where quality and community matter, that’s a pretty terrifying thought.
Imagine your studio was in the heart of New York City. A government-mandated rent control program says you can’t charge more than a certain amount. Sounds good at first glance, but what happens when your building needs repairs? The landlord has no motivation to fix the roof, update the heating, or spruce up the common areas. Eventually, your beautiful, community-driven studio may find itself surrounded by crumbling buildings and outdated spaces, while the landlord down the street keeps passing up investments because, frankly, why bother? This is what Sowell calls the “slow creep” of decline.
It’s not just about rent. Imagine if your core supplies were suddenly price-controlled. If you run a studio that offers retail, events, or classes, you’d be stuck with the same limited options, even if they’re not the best quality or what your community wants. There’s a direct line here to studios, creativity, and financial health: when price controls hit the market, the resources and quality you rely on might start to disappear, too.
For all the entrepreneurs out there, especially studio owners, navigating these changes isn’t just about raising prices—it’s about creating a financial structure that can absorb those impacts while still providing a beautiful, creative space for your community. Here’s where PYOP Accounting comes in, with financial systems designed to help you stay profitable, even when the market feels shaky.
At PYOP Accounting, we believe that every studio’s main job is to support you and your vision for growth, creativity, and community. We’re here to help you create financial systems that make price changes, material costs, and rent adjustments feel a little less like curveballs and more like manageable steps on a path to long-term growth. Think of us as your dedicated partner, here to ensure your studio grows with ease, your events stay profitable, and your community keeps coming back for more.
So, if you’re looking for ways to keep your studio thriving while inflation is doing its thing, stick around. We’ve got plenty of practical, insightful tips that will help you bake smooth financial systems into the DNA of your business, no matter what the government’s next inflation “solution” may be.
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Donna Bordeaux, CPA with PYOPAccounting.com
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.
