How Higher Fuel Prices Affect Small Businesses

According to the U.S. Energy Information Administration, gas prices are up $.90 per gallon from where they were just one year ago. During these times of increasing fuel costs, it’s often small businesses that are hit the hardest. 


Business owners are forced to make decisions to maintain operation while still servicing their customers. Rising fuel costs impact multiple facets of a business per a recent report by Small Business Chronicle: supply and overhead, service areas, staffing schedules, and pricing of products and services. 


Supply and Overhead Costs

Rising fuel prices increase the daily costs of business operations, especially when a company (such as The Window Depot) depends on suppliers to transport products to our job sites. Timely delivery is crucial to our daily operations and overall customer satisfaction. Rising transportation costs affect the delivery of materials, thus impacting job completion timelines. 


Service Areas

Any business that performs services “on-site” is impacted by the price of gas. To save on fuel costs, they may temporarily limit their existing service areas or alter their current driving routes. 


Staffing

Soaring fuel prices can result in cost-cutting in other areas. If a business is having difficulty making ends meet, it may evaluate staffing levels. Layoffs or reducing work hours can reduce costs while still maintaining services and meeting customers’ needs. However, customers may see a delay in the delivery of goods and services. 


Pricing

When gas prices continue to rise over an extended period, a business may have to pass the cost on to its customers - especially if the business owner has exhausted all other options. The feasibility of this depends on the industry, local competitors, and the customers' willingness to pay a little for products and services. It’s a delicate balance between the need to meeting increasing fuel costs and the risk of decreased revenue. 


Since 2009, The Window Depot’s mission has been to improve homes throughout the Tampa Bay area with premium products and customer service that is unprecedented in the industry - even in challenging times. To schedule an appointment, call us at (813) 901-5555 or fill out our contact form to schedule an appointment. You can also visit our showroom in Palm Harbor to view our products and discuss your home project with one of our consultants.



Sources

https://smallbusiness.chron.com/effects-rising-gas-prices-small-businesses-59276.html 

https://www.sun-sentinel.com/business/fl-bz-gas-prices-could-rise-again-20210308-j22g2dsho5hlzl64xgygxskcay-story.html 

https://www.eia.gov/todayinenergy/detail.php?id=47357 



 
Location: 4154 Corporate Ct, Palm Harbor, FL 34683, USA

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