This is a guest post by Dave Thomas who writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

While the general consumer is getting hosed at the gas pumps over the last month, how do you think the spike in prices is impacting the small business owner? If you talk to many such business heads, they are likely to tell you they are getting squeezed too.

The recent spike in gasoline prices comes on the heels of the U.S. economy just seeming to get its legs after a few years of down times, including a hard-hitting recession.

For those fearing the current hike, they need only look back to 2008, when the price for a gallon of regular gasoline went to a national average of $4.11. According to some experts, the price could hit $4.25 by mid-spring, with even $5 gas in some states.


With no end in sight to the ever-increasing prices, many small business owners, be they just starting a small business or been around for some time now, are finding themselves cutting costs. Trimming expenses is especially true when it comes to deliveries, travel to meet with clients, or attending and/or participating in local events that at one time seemed rather ordinary in the scheme of things.

Some of the small business owners most impacted by the higher fuel costs are those that make deliveries, such as florists, eateries, cleaning services and more. What may have cost $100 or so for weekly delivers just a few months ago has easily jumped to double or triple that for many businesses nationwide.

Ways to Cut Back on Expenses


In order to curb costs, some small business owners are cutting back on delivery services for the time being, requiring employees who drive the trucks to not take them home for the remainder of the day at the end of a shift, and trying to make more deliveries at one time in concentrated areas instead of several trips.

As you might expect, the small business owner is also paying the price with the high costs from those who deliver their goods to begin with. If those goods and services are costing more in jet fuel and truck delivery, then the small business owner gets hit with the higher costs, and then filters them down to the consumer.
In the event you find your small business being impacted by the recent spike in gas prices, consider a few of these options:

• Consolidate your delivery schedule so that you are getting the most for your dollar. If you have several customers in a general area, try and make it so you hit your delivers all at once instead of making several runs there;

• Install GPS systems if you have not already on each of the company vehicles. This way, you can track how far your drivers are going, making sure they are not running up mileage that is not necessary for their required deliveries;

• Give your customers some deals in exchange for having to cut back on deliveries. Yes, some customers may not be thrilled with the idea they will have to come into your business to pick up their goods, but make it so they have incentive to, all the while you save some money on fuel;

• Shop around for more fuel-efficient vehicles if you were planning on an upcoming purchase.

Given that the higher gas prices are not forecast to change anytime soon, small business owners should have already put a plan in place to drive off with some savings.


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