Business Opportunities Weblog

June 9, 2008 by Rich Whittle | 1 Comment

Columbia Tribune:

More than 90 percent of respondents to a recent national survey of independently owned construction, remodeling, plumbing, heating and air conditioning, and landscaping firms indicated their businesses will suffer significantly due to increased fuel costs. Consumers have just about reached their limit in terms of paying additional fuel surcharges or increased costs for services.

What’s a small-business owner to do? They seldom have any kind of reserve to help them absorb the added costs. In addition, they often are the last to get paid when their customers fall on hard times themselves, as many are with rising fuel and consumer goods prices.

Larger firms are consolidating the transportation of their crews to various worksites, putting fewer vehicles on the road. Some are reducing employee benefits to save money for transportation costs. Some workers are trading in expensive trucks for less expensive cars and more efficient vans.

These kinds of service industries are not alone. The manager of a local restaurant told me he has had to raise prices recently as a result of increased costs for everything from take-out boxes to flour and cheese. It simply costs more to get the raw ingredients to the restaurant.

Realtors are more judicious about making trips to properties that are clearly out of their clients’ price range. They e-mail clients information about properties and encourage drive-bys before making an appointment to show the property. Or they consolidate their showings in one part of the community instead of driving randomly from one site to another.

Florists are encouraging in-store pickups instead of delivery. Neighboring businesses are developing buddy systems for delivery, sharing vehicles and drivers to take everything from office supplies, sandwiches and flowers to customers in nearby destinations.

Photo by pchweat.

In Economy, Small Biz, Strategy | 1 Comment