The 2026 Turning Point: How Affordability Is Forcing Family-Owned Businesses to Rethink Pricing and Profits

Posted Feb 3, 2025

Affordability Emerges as a Defining Issue for Family-Owned Businesses in 2026

Affordability continues to be top of mind among our lawmakers in Washington, D.C., and among family-owned business leaders.

Family-owned businesses tend to be more resilient and less dependent on short term gains than large corporations when it comes to navigating pricing, profit margins, customers, and community.

Yet, in an era of rising costs, inflation pressures, and heightened competition, many family-owned businesses face a common challenge: how to keep products affordable while sustaining profitability, fighting inflation, and investing in the future?

…Family-owned businesses face a common challenge: how to keep products affordable while sustaining profitability, fighting inflation, and investing in the future…

It’s a delicate balancing act requiring creativity, discipline, and a commitment to long-term value over short-term gains. If done well, it’s a competitive advantage.

Economic Uncertainty and Inflation Put Pressure on Family Enterprises

But economic uncertainty remains a pressing concern. Navigating inflation, new tariffs, changing consumer buying patterns, and unpredictable interest rates keep family business leaders alert to the slightest changes.

It’s still too early to have any solid research going into 2026 on how family-owned businesses are responding to the affordability issue.

New Research Will Shed Light on Affordability Strategies in 2026

Right now, we’re conducting our own research on key issues affecting family businesses in our Family Enterprise USA 2026 Annual Family-Owned Business Survey. We’ll have the full results out in mid-March.

Also, on March 17, we’re having the year’s first gathering of the Congressional Family Business Caucus on Capitol Hill with the theme of “Profits and Pricing: Affordability Strategies for Family-Owned Businesses.”

At this Caucus meeting, family business leaders will present their many approaches to handling the affordability issue, including maintaining profits and investing in the future.

CEOs Are Being Forced to Rethink Business Models

But CEOs everywhere are being forced to rethink their businesses.

In last year’s EY-Parthenon CEO Outlook survey of 1,200 CEOs, it was found 7 in 10 “agreed they need to rethink their approach to transformation” due to geopolitical volatility, an uncertain economic environment, and the increased speed and scale of technology disruption. Yet, only about 66% said they have yet to make changes.

7 in 10 [CEOs] “agreed they need to rethink their approach to transformation” due to geopolitical volatility

Global Surveys Show Family Businesses Prioritize Stability Over Growth

In PwC Global’s latest Family Business Survey, covering 1,325 family businesses, it found family-owned businesses prioritized stability and legacy preservation over aggressive growth.

This study said cost pressures and uncertain markets influenced operational choices, including pricing, investment, and profit decisions heading into 2026.

Other studies, like the 2025 Deloitte Private Global Family Business Insights Series, found family enterprises are adapting to affordability issues by scaling innovation and investing in technology, including AI.

A Bank of America Business Owner Report from late 2025 found inflation remains the top concern among small- and medium-sized business owners, with around 70% seeing it as their biggest challenge and many raising prices to offset increased costs due to inflation.

Pricing Pressure Creates Tension for Family-Owned Business Leaders

When I speak with family-owned business leaders about affordability, there’s tension between raising prices to cover higher costs while at the same time trying to stay competitive. Most see modest price increases for 2026 as inevitable.

But rather than chasing the lowest price point, many family firms are focused on sustainable value—fair pricing and a future built on loyal customers and sound financial health.

Value-Based Pricing Emphasizes Long-Term Worth Over Cost

One example is value-based pricing, which emphasizes value over cost.

The trick here is to clearly communicate why products are worth the price. The higher price may be due to craftsmanship, sustainability, local sourcing, or superior customer service.

Tiered Product Lines Expand Access Without Diluting Brand Identity

There is also the affordability strategy of tiered product lines.

This is where multiple product tiers allow customers to choose what fits their budget. This can widen the customer base without diluting brand identity or core pricing strategies.

Multiple product tiers allow customers to choose what fits their budget.

Dynamic Pricing Helps Businesses Respond to Market Conditions

Some family businesses employ dynamic pricing, where prices are adjusted based on demand, seasonality, or inventory levels.

Transparency With Employees Supports Affordability Decisions

No matter what pricing or margin strategies are used, it’s important to have open discussions about costs and profitability with staff. This builds a shared sense of responsibility and helps employees understand the financial constraints the family business is under.

As a result, employees are more likely to support cost-saving measures, price increases, and contribute ideas for improvement.

Advocacy With Family Enterprise USA Action

Since 1995, our sister organization, Policy and Taxation Group (PATG), has advocated on Capitol Hill for family offices, successful families, and family-owned businesses. It’s our vehicle for “taking action” directly with lawmakers, particularly on key tax and economic issues.

To reflect the importance of these actions on “The Hill,” PATG is being renamed in 2026 to Family Enterprise USA Action.

A Renewed Focus on Tax and Economic Policy Advocacy

Family Enterprise USA Action will continue PATG’s focus on tax and economic issues, including working to reduce and eliminate estate, gift, and generation-skipping transfer taxes. At the same time, it will continue to block increased income and capital gains taxes, the creation of a wealth tax, and other tax policies that punish hard work and success.

In addition, Family Enterprise USA Action (FEUSA Action) will continue PATG’s 501(c)(4) organization status.

By aligning more closely with the educational and promotional work we’re doing with lawmakers through Family Enterprise USA, FEUSA Action makes it clear both organizations are fully aligned—advocating and acting for successful families, family offices, and family-owned businesses in 2026 and beyond.

Pat Soldano is President of Family Enterprise USA and Family Enterprise USA Action (formerly Policy and Taxation Group). Both are non-partisan organizations advocating for family enterprises of all sizes and are organizers of the Congressional Family Business Caucus and the Family Enterprise USA Annual Family Business Survey.

Family Business Alliance strives to help family businesses with the tools, resources, and connections to help businesses succeed. Learn more about our resources including Leading Forward, Succeeding in Succession, and Navigating Governance that help to advance family business in our community.