Small businesses are feeling the pinch of rising prices at the gas pump
Small businesses are feeling the pinch of rising prices at the gas pump
The price of gasoline isn’t just a burden for consumers. Small businesses are feeling the pinch, too. We checked in with some small business owners to hear about how they’ve been managing the spike at the pump.
Early in the pandemic, Jenny Niezgoda added a new line of business to her catering company and food market, Al Fresko. She started delivering charcuterie boards to people’s homes.
“That was a huge segment of our business that we’ve fortunately been able to grow in the last couple years,” she said.
In the San Diego area where Niezgoda’s business is based, gas prices have gone up by 70 cents per gallon over the past week.
So, on Tuesday, she hiked her delivery fee by 60%. That’s from $25 dollars to $40.
“When you’re paying almost $6 a gallon, I think I saw yesterday, and it keeps rising daily, we want to make sure that we’re kind of preparing for the weeks coming as well. Because we don’t know — is it going to keep rising at that rate?” she said.
Niezgoda isn’t sure how customers will react. She’s wondering whether she wants to deliver at all if she has to charge that much.
“So maybe at this point it’s something where we start to shift more to … having our clients come pick them up at the shop,” she said.
Near San Francisco, equipment supplier TMB Baking is re-thinking its vehicle fleet.
“We’re donating a pickup truck that we had, and we’re also eliminating one van of our van fleet that’s not as fuel efficient,” said CEO Greg Warwick.
The company does a lot of site visits to inspect equipment.
“Our installation manager was going to a bakery this morning to evaluate an oven. Then we asked him to take the Prius,” Warwick said.
Even businesses that don’t own their own vehicles are feeling the pinch. Cathrine Reynolds handles imports and deliveries for Palmetto Tile Distributors in South Carolina. Her shipping companies started adding new fuel surcharges this week.
“And those are averaging between, like, $1.50, $2.50 per shipment, per box. So it sounds small, but it adds up, especially when we have to pass those costs on to our clients,” she said.
Given the continued shortage of drivers, congested ports, and problems sourcing raw materials, Reynolds said she’s expecting her delivery fees to rise even more.
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