LYNDONVILLE, Vt. -- Fox News has reported that high gas prices are having a negative impact on small businesses. Businesses that are mobile are the most affected by the rising numbers at the pump. The U.S. Energy Information Administration says gasoline prices may average $3.70 per gallon during the peak driving seasons. This could change because of the uncertainty in the oil markets. There is a real possibility that the national average for regular gas could exceed $4 per gallon this summer.
I live in Vermont, and own a small floral and gift business. At the moment, gas prices are $3.59 per gallon for regular gas. The majority of my business is traveling to shows on weekends. Most of my shows are more than two hours away. I live in a small community, and there are very few craft show opportunities in this area.
The cost of traveling to shows has doubled in just over a few months. This greatly impacts my expenses, and how many shows I can attend. Unfortunately, there is no easy solution. Cutting shows from my schedule also cuts my income. What I have cut out is the luxury of staying overnight before a show to setup my display.
On most Saturday mornings, I begin my travels at approximately 4 a.m. in order to get to my destination before 7 a.m. This can take quite a physical toll, but the money I save by not staying overnight helps to compensate for the increased cost of gas.
The inflated gas prices also have an impact on my shipments. Most of the supplies needed for my business are shipped. I have noticed an increase of almost $3 per shipment. Depending on the season, this can be an increase of $30 in just three weeks time. I now try to think long term, and estimate what I will need a month ahead of time for supplies. Often a small business faces times when funds are tight. When I experienced a fund shortage, I would order on an as-need basis.
Unfortunately, this is not a cost-effective solution for my business at this time. To save on shipping costs, placing large orders has to be the normal for now. Some companies will absorb the shipping cost if an order is large enough, and those are the companies I try to order from.
Another part of my business is shipping products. I wholesale and retail my gifts and florals. When I shipped out my last orders, I noticed the price to ship a box of florals that weighed the exact amount going to the same destination was almost $2 more than in the previous months. I also encourage my wholesale customers to order larger amounts to save on shipping cost. I have standard shipping rates for my business, and am hoping I won't have to raise prices. If I do, that will hurt my business, and reduce the capital I need to keep my business going.
I have learned that in order to keep my business going while gas prices keep soaring, I need to keep thinking outside-the-box for creative ways to get through these trying times. I find it is helpful to reach out to local businesses in the community for solutions. I find comfort talking to other small businesses struggling because of high gas prices.
If small businesses band together, we can creatively think of solutions that can help us through this difficult time. I am organizing meetings locally for those working in the craft industry. If we all put our heads together, we can help each other find solutions to keep our small businesses going until gas prices stabilize.
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