71% of Consumers are Ready to Pay More to Shop at Small Businesses This Holiday Season

TEMPE, Ariz. /PRNewswire/ — Consumers are in a giving mood this year, not just toward their friends and families, but also to small businesses. According to a new GoDaddy survey, 71%* of U.S. shoppers are willing to pay more to support small businesses during Black Friday and this year’s holiday season, with an eye-popping 53%* of them willing to spend up to 10 percent more to do so. 

Despite 65%* of survey respondents agreeing that inflation will impact their shopping this holiday season, their desire to shop small is clear. More than 3 in 4 (78%)** people are as or more likely to shop at a small business this Black Friday and throughout the holidays compared to previous years, with Gen Z being the most likely to shop small (85%)** and Millennials following closely behind (83%)**.  

Of the reasons to favor small businesses, 30% of respondents cited wanting to support their local economy, while 18% claimed doing so led to better customer service, and 13% preferred unique or handmade products**. 

The Stakes Are Big for Small Businesses 

GoDaddy surveyed U.S. consumers to help small businesses understand their customers’ shopping priorities during the all-important holiday season. According to the survey results, 40%* of U.S. consumers plan to do most of their holiday shopping in the next four weeks, with almost 1 in 5 (19%)* planning to do the bulk of their shopping on Black Friday alone.  

“Black Friday has long been considered peak selling season for large retailers, but GoDaddy’s research makes it crystal clear U.S. shoppers are willing and eager to make this the smallest Black Friday ever,” said GoDaddy Small Business Trends Expert, Amy Jennette. “Despite inflation concerns and rising costs, consumers want to support their local businesses and economies.” 

Jennette continued: “To take advantage of this opportunity, small businesses should lean into the ‘shopping small’ experience that consumers value and are willing to pay more for. They can do this by focusing on unique holiday promotions and offers to attract traffic and provide superior customer service along with unique products and experiences they can’t find elsewhere.” 

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Who Consumers Are Shopping for and How Much They’re Spending  

GoDaddy’s survey also shows consumers are embracing the spirit of giving. Nearly one-third (31%) of consumers purchase gifts for six or more people, and 10%* extend their shopping lists to more than 10 people. 

For many, the holiday season is a time to show their generosity, with about a fifth of respondents (22%)** typically spending more than $100 per person. Additionally, 32% of shoppers who participated in the survey reported spending between $51 and $100 per person during the holidays. That means over half (54%) of respondents plan to spend more than $50 on gifts per person this holiday season. 

Spreading holiday joy isn’t just about giving gifts to others. Two-thirds (67%)** of consumers intend to treat themselves to a holiday indulgence, as well. Gen Z is the most likely to do so, with 83%** planning to buy themselves a special item or experience. 

So Many Tools and Resources to Help Small Businesses This Holiday Season 

Small businesses looking for guidance on how to maximize their seasonal sales should visit GoDaddy’s Ultimate Guide to Holiday Campaign Planning. Valuable resources include holiday marketing advice by channel, do’s and don’ts for offering seasonal promotions, AI prompts that make it easy to manage and promote a business during the busiest time of year, and much more.  

Visit GoDaddy.com to learn more about the solutions GoDaddy offers small businesses, including the AI-powered GoDaddy Airo experience that TechRadar called “a game-changer for small businesses looking to establish their online presence, particularly because of how much time and effort it saves.”  

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Methodology
The survey data referenced in this news release was collected via two surveys in which U.S. consumers were asked about their holiday shopping habits: one conducted in October 2024 with 1,247 respondents* and one in September 2024 with 1,520 respondents**. 

About GoDaddy
GoDaddy (NYSE: GDDY) helps millions of entrepreneurs globally start, grow, and scale their businesses. People come to GoDaddy to name their idea, build a professional website, attract customers, sell their products and services, and accept payments online and in-person. GoDaddy’s easy-to-use tools help microbusiness owners manage everything in one place and its expert guides are available to provide assistance 24/7. To learn more about the company, visit www.GoDaddy.com. 

Source: GoDaddy Inc.

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Inflation remains one of the most discussed and misunderstood economic issues affecting the United States today. With rising prices impacting everything from grocery bills to gas stations, understanding the underlying causes, ongoing impacts, heresies and speculations, and possible solutions is essential. In this blog, we delve into the complexities of inflation and examine the role of government actions, particularly under the Biden Administration, in managing this economic challenge.

What Causes Inflation?

Inflation can arise from several sources, categorized mainly into three types: demand-pull inflation, cost-push inflation, and built-in inflation.

• Demand-pull inflation occurs when the demand for goods and services exceeds their supply.
• Cost-push inflation is caused by an increase in the costs of production, such as raw materials and wages.
• Built-in inflation emerges from the expectation of future price increases, leading workers to demand higher wages, which companies pass on to consumers as higher prices.

Understanding these mechanisms is crucial to addressing inflation effectively, as each type may require different policy responses.

Current Causes of Inflation in the US

Today, the US economy faces inflation driven largely by post-pandemic economic recovery dynamics. Key factors include supply chain disruptions, increased consumer spending, substantial government stimulus measures, and global economic pressures. Each of these factors has combined in unique ways to push prices upward, albeit hopefully temporarily.

Heresies, Speculations, and Truths

A significant point of contention and speculation revolves around the concept that corporations are exploiting these turbulent times to increase prices disproportionately, thereby boosting profits at the expense of consumers. While businesses are indeed facing increased costs, the extent to which these are being passed on to consumers varies by industry and firm, leading to debates over potential price gouging.

This raises an essential question: Are current inflation trends purely the result of macroeconomic factors, or are they exacerbated by strategic corporate pricing behaviors? The truth likely lies somewhere in between, reflecting the complex interplay of cost-driven pricing adjustments and market power.

Policy Responses and Actions by the Biden Administration

Addressing inflation requires a combination of monetary policy, fiscal adjustments, and targeted interventions.

• Monetary Policy: Traditionally managed by the Federal Reserve, this includes manipulating interest rates and controlling the money supply to temper economic overheating.
• Fiscal Policy: Here, government spending and taxation play roles—areas where the administration has significant influence.
• Regulatory Measures: The government can enforce antitrust laws, monitor unfair pricing practices, and ensure a competitive market environment.

Under President Biden, the Inflation Reduction Act represents a broad policy measure ostensibly designed to tackle inflation by making long-term investments in energy infrastructure, healthcare, and tax reforms. While its name suggests an immediate reduction in inflation, its actual impacts are geared more towards future economic stability and growth.

Furthermore, the administration can support the economy through social programs, wage supports, and direct financial aid, which can alleviate the burden on consumers and help stabilize demand.

Something to Think About

While inflation remains a pressing issue, it is clear that no single policy or action can completely address its varied causes. A balanced approach that includes responsible monetary policy, prudent fiscal management, and firm regulatory oversight is essential. Moreover, clear communication and strategic planning by the administration can help set realistic expectations and guide the economy toward a more stable future.

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In tackling inflation, understanding its roots, dispelling myths, and implementing a holistic strategy are vital steps forward for the Biden administration and other stakeholders. As we navigate these economic challenges, staying informed and engaged is crucial for all citizens.

References and Resources

Understanding inflation involves a multi-faceted approach, taking into account economic theories, current events, and policy impacts. Here are some resources that can provide a well-rounded view of the ongoing discussions and analyses regarding inflation in the current US economy:

1. Federal Reserve Economic Data (FRED) – St. Louis Fed

• Website: FRED – Economic Data
• Description: Access a wealth of data on inflation, interest rates, employment, and more. An invaluable tool for analyzing economic trends.

1. Bureau of Economic Analysis (BEA)

• Website: BEA – U.S. Economic Accounts
• Description: Find detailed economic analyses and data on GDP, consumer spending, and corporate profits, all of which tie into broader inflation discussions.

1. The Economist – Finance and Economics Section

• Website: The Economist
• Description: Offers insightful articles on global and US economic conditions, including expert analyses on inflation and government policies.

1. “The Causes and Consequences of Inflation” – Brookings Institution

• Website: Brookings
• Description: Brookings provides thorough research articles and papers on economic topics, including detailed discussions on inflation causes and effects.

1. “Inflation Dynamics and Monetary Policy” by the International Monetary Fund (IMF)

• Website: IMF Publications
• Description: This paper discusses inflation dynamics and the impact of monetary policy, offering a global perspective that can also be applied to the US context.

1. Wall Street Journal – Economy Section

• Website: WSJ – Economy
• Description: Regular updates on economic trends, inflation rates, and Federal Reserve actions, with professional commentary.

1. “Principles of Economics” by N. Gregory Mankiw

• Where to find: Amazon or your local bookstore
• Description: Although not an article, this textbook provides a solid foundation in economic principles, including detailed discussions on how inflation works.

1. National Bureau of Economic Research (NBER)

• Website: NBER
• Description: A wealth of research papers on economic topics, including inflation studies that help explain current trends in the US.

By exploring these resources, you can gain a deeper insight into how inflation is currently affecting the US economy, what the potential future trends could be, and how policy decisions influence the economic outlook.

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Anna Nagurney, UMass Amherst

A dockworkers strike that froze operations at East Coast and Gulf Coast ports for 2½ days was paused on Oct. 3, 2024. The Conversation U.S. asked Anna Nagurney, a scholar of supply chains, to assess the extent of disruptions that likely occurred and how the swift return of 45,000 workers who had been on strike may stave off further problems down the road.

Why was the strike suspended?

Aided by intense pressure from senior Biden administration officials, the shipping companies, represented by the U.S. Maritime Alliance, significantly increased the raise they were offering the dockworkers to 62% from their previous offer of a 50% boost in pay. The International Longshoremen’s Association, the dockworkers’ union, was seeking a 77% raise, but it accepted the new offer, which will be phased in over six years.

The agreement labor leaders and management reached will suspend the strike until at least Jan. 15, 2025, allowing more time for additional collective bargaining and negotiations.

Talks over other contested conditions, including the adoption of more automation, will continue until then.

President Joe Biden applauded both sides. He thanked the union and management “for acting patriotically to reopen our ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding.”

How has this strike affected the economy?

About half of the products that the U.S. imports are handled by the ports that were paralyzed during this brief strike. About 1 million shipping containers arrive at these ports every month.

Imports include vast quantities of bananas and other fresh produce, coffee, pharmaceuticals, liquor, toys, apparel, furniture, machinery and vehicles. Exports include meats, commodities, machinery, chemicals, vehicles and vehicle parts.

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The strike’s impact was immediate. More than 50 ships laden with hundreds of thousands of containers created a logjam at East Coast ports. Major retailers, such as Walmart, Costco, Lowes and Home Depot, were among the companies stuck waiting for the release of their stranded cargo.

It may take two to three weeks to relieve this logjam. Prices for some products, including coffee, were already rising before the negotiators reached their breakthrough.

Workers are critical to the functioning of each link in supply chains. When the dockworkers were on strike, other workers, such as truckers, rail employees and warehouse workers, were concerned about being affected, as well as all the businesses that rely on them, such as restaurants.

Why is the new time frame significant?

Shipping tied to the holiday season typically runs from July through early November. Members of the National Retail Federation, the largest U.S. retail trade group, have already been dealing with significant supply disruptions due to Houthi attacks in the Red Sea and Suez Canal. The attacks have forced shipping companies to take longer routes, delaying cargo delivery and increasing costs due to the need for more fuel and labor.

A prolonged dockworkers strike would put stress on the economy. According to J.P. Morgan, a lengthy dockworkers strike could have cost the U.S. economy US$5 billion per day.

The temporary agreement pushes the strike past the U.S. elections in November and the conclusion of the upcoming holiday season. That gives both sides a chance to return to the bargaining table to continue to negotiate and to reach an agreement on the issues that haven’t been resolved yet – notably the use of automation.

Having a shorter strike will reduce the risk of shortages of everything from mangos to Maseratis and the price increases that typically occur when products are scarce and in high demand.

What did the Biden administration do?

The Biden administration was eager for a settlement, especially with the ports serving as channels for recovery supplies after the massive damage seen in Florida, western North Carolina and other areas near the East Coast from Hurricane Helene.

Senior government officials made notable progress when they met with representatives of shipping companies before daybreak on Oct. 3 over Zoom.

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Julie Su, the acting labor secretary, had been working hard to help the two sides settle their differences. She emphasized over Zoom that she could get the International Longshoremen’s Association to the bargaining table to extend the contract. Transportation Secretary Pete Buttigieg also stayed in touch with labor and management, and used that Zoom meeting to tell the shipping companies that they would need to offer the dockworkers a higher wage.

White House Chief of Staff Jeff Zients told the shipping companies on Zoom that they should make an offer to the union quickly so that the strike wouldn’t further exacerbate the effects of Hurricane Helene.

It seems clear to me that the pressure worked – helped, perhaps, by a bit of patriotism.

Anna Nagurney, Eugene M. Isenberg Chair in Integrative Studies, UMass Amherst

This article is republished from The Conversation under a Creative Commons license. Read the original article.

STM Daily News is a vibrant news blog dedicated to sharing the brighter side of human experiences. Emphasizing positive, uplifting stories, the site focuses on delivering inspiring, informative, and well-researched content. With a commitment to accurate, fair, and responsible journalism, STM Daily News aims to foster a community of readers passionate about positive change and engaged in meaningful conversations. Join the movement and explore stories that celebrate the positive impacts shaping our world.

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