3 Businesses That Thrive When Gas Prices Go Up

Photo by brownpau

The following is a guest post by Anthony Benedict.

Thinking of starting a business, or evaluating a job offer? When determining if a business can survive in today’s world, gas prices are a huge factor. Depending on the business, gas prices can affect the cost of goods that a company buys, the shipping costs incurred by a company when sending out products to customers, and even the price of business travel to meet with clients.

The businesses with the steadiest longevity today are cutting ties with crude oil as much as possible to keep costs down. Even when times are tough and gas prices are high, these three types of businesses manage to thrive:

Gas-Price Proof Businesses

  1. Businesses that operate mainly online, such as web site developing companies. Although some clients prefer to meet in person, even when the work will be done remotely, many are willing to settle for no face-to-face meetings in favor of virtual conferencing. With the click of a mouse or button on a smart phone, clients can meet their independent contractor and verbally express their goals concerning the project.

  2. Retailers that shift the focus of their selling to online storefronts, especially small businesses that make their own products. Shipping costs are typically billable to the customer, unless the retailer chooses to offer free shipping as a bonus. Only offering free shipping on large orders and packaging items together can actually encourage customers to spend more, making this type of business possibly even more lucrative in times of rising gas prices.

  3. Businesses that minimize visits to a customer by maximizing service the first time around. This includes home improvement contractors and other repairmen. If a job would take several days if only one or two employees were sent over, and the company services a large area and could consume hundreds of dollars in gas just for one job, sending over several employees to work and cutting down on the time works. It also helps to check for any flaws before leaving the job site, which also has the added bonus of keeping customers happy.

Any Business Can Survive Rising Gas Prices

The bottom line for businesses striving to survive is to adapt to changing gas prices. If travel is a business necessity, a small business credit card that offers travel rewards can dramatically reduce the cost of business related airfare. Companies that once took all of their business to their clients can use technology to stay in touch: smart phones can facilitate “face-to-face” meetings, fax machines and e-mail can get important documents to a client fast, and even social media can help businesses keep in touch with their customers without using transportation.

Companies operating mainly online will not be the only companies in the future, as gas prices continue to rise. Businesses that can effectively use their ingenuity to keep transportation costs in check will help keep themselves solvent in the long term. Even businesses that rely heavily on transportation, such as delivery businesses, can keep afloat by using more fuel-efficient transportation methods and by planning routes to be as short and time-efficient as possible.

Anthony Benedict helps to run and maintain CreditDonkey.com – which is a credit card comparison web site.

Photo by brownpau.

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