The Cost of a Price Hike

By Sara Wilson of Entrepreneur Magazine



Nickels and dimes add up fast, and while consumers might not be aware of the extra charges at first, they're sure to feel it in their pocketbooks later. Bob Sullivan coins it "gotcha capitalism" in his book, Gotcha Capitalism: How Hidden Fees Rip You Off Every Day and What You Can Do About It.

Whatever you call it, tacking on hidden fees is an exploding trend, says Sullivan. "Companies under intense price pressure have figured out that they can soak consumers by giving them a teaser price, hiding the real price of things and tacking on fees later."

(Adding fees may be inevitable for entrepreneurs doing business in today's economy.)

But with rising costs, how do entrepreneurs stay afloat without passing along the fees to customers? Monique Hayward, founder of Dessert Noir Café & Bar in Beaverton, Oregon, is feeling the pinch as her own costs go up. ...