We’ve talked before here on the blog about how to address a planned price increase with your customers. But what about the rate hikes that weren’t your idea?
This comes to mind as Washington, DC prepares to implement a controversial new sales tax on wellness-related businesses in the District. The so-called “Yoga Tax” will add 5.75% sales tax onto the fees for businesses like gyms, yoga studios, tanning salons, and water delivery services starting October 1st, 2014. This, understandably, has business owners in DC concerned. Supporters of the new tax are quick to point out that DC is also lowering business income taxes at the same time, suggesting that what business owners may lose in memberships, they will make up for in tax savings.