One in 10 New Zealanders were struggling to make ends meet, Consumer NZ said. Photo:
Most consumers think it is fair for small- and medium-sized businesses to pass on cost increases to customers, but are much less supportive of large or multinational businesses doing so.
A survey of more than 1000 New Zealanders, commissioned by communications agency Anthem and undertaken by Talbot Mills Research, found three-quarters (74 percent) agreed it was fair for small businesses with fewer than 10 staff to pass on cost increases to their customers, while two-thirds (65 percent) were supportive of medium-sized businesses (10-99 staff) doing so.
However, there were lower levels of support for large (40 percent) and multinational (30 percent) companies passing on extra costs to customers.
"Despite the pressures on the business sector, this research should be a wake-up call for many organisations," Talbot Mills research managing director David Talbot said.
"Businesses need to show consumers they understand the challenges they face regarding the cost of living, and work hard to communicate and demonstrate how they are trying to keep a lid on rising costs."
Consumer NZ head of research and advocacy Gemma Rasmussen said its research indicated one in 10 New Zealanders were struggling to make ends meet, with housing affordability the top concern, followed by food costs.
"For essential services like supermarkets or banking, we rely on competition to keep prices low," Rasmussen said. "Without competition, New Zealanders don't have options to shop elsewhere, allowing markets to distort prices resulting in high prices and mediocre services for consumers."
More than four out of five respondents (81 percent) considered supermarkets to be charging excessively, followed by fuel companies (79 percent), banks (73 percent), electricity and natural gas suppliers (72 percent) insurance (69 percent) and hospitality (57 percent).
BusinessNZ chief executive Kirk Hope said businesses were facing rising costs at a much faster pace than previously experienced, and urged businesses to provide greater transparency to help consumers better understand the nuances of profitability.
"These businesses are running out of room to absorb cost increases, and need to be part of a better conversation about what it means to be profitable," he said, adding that the majority of businesses employ fewer than 50 people.