Mainebiz

V O L . X X X I I N O. X I M AY 1 8 , 2 0 2 6 22 S M A L L B U S I N E S S F O C U S F uel and utilities. Raw materi- als and packaging. Payroll and benefits. Real estate. Rising costs of everything are eating into the bottom line of small busi- nesses across Maine's economy. Veronica Stubbs in Belfast is feeling the pinch on several fronts at the Scone Goddess, a small manufacturer she owns with her son. In the past few months alone, she has been paying three times as much for cocoa from Holland, 72% more for gluten-free flour from Denmark and close to 50% more for candied ginger. She's also paid as much as $1,300 per 20 pounds of freeze-dried raspberries from Florida, up from $880 at the end of 2025 and constantly in short supply. Packaging from Pennsylvania is 10 cents higher. All that adds up quickly for a seven-person team with a monthly pro- duction capacity of 40,000 mixes. Yet Stubbs, still foregoing a pay- check six years after launching the business in nearby Northport, feels guilty about raising her wholesale price by 15 cents a bag this year for the first time since 2024 and upping her retail price by 10 cents a bag. "e hardest part of running the Scone Goddess," she says, "is staying ahead of costs." On a self-proclaimed mission to "change the world one scone at a time," the former bed-and-breakfast owner aims to keep prices low as long as possible. "We do not want to be a brand that is so expensive that it prices out our fans." at's the dilemma facing small busi- nesses everywhere, squeezed between rising costs and reluctance to pass those costs on to customers. Even those that aren't tracking economic indicators face daily reminders every time they drive by a gas station or buy groceries. Nationwide, annual wholesale infla- tion was 4% in March, the highest rate in more than three years, driven by a 15.7% jump in gas prices as the Iran war curbs global crude oil supplies. Diesel fuel, jet fuel, home heating oil, meats and basic organic chemicals all rose as well. Survival Survival tactics tactics S O U R C E : US Chamber of Commerce TOP 6 CHALLENGES FACING SMALL BUSINESS OWNERS Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 10% 0% 20% 30% 40% 60% 50% Inflation costs Inflation costs Supply chain issues Supply chain issues Revenue Revenue Interest rates Interest rates Access to credit/loans Access to credit/loans Affording employee benefits/healthcare Affording employee benefits/healthcare P H O T O / J I M N E U G E R At the Scone Goddess in Belfast, owner Veronica Stubbs leads a seven-person team that makes ready-made mixes. The hardest part of running the Scone Goddess is staying ahead of costs. — Veronica Stubbs Scone Goddess How small Maine businesses are navigating the rising cost of everything B Y R E N E E C O R D E S

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