CONTROLLING COSTS
Tips on beating high fuel prices
High gas prices are hurting small businesses of all kinds,
nationwide. And how to cope has become a hot topic of
conversation among business owners and entrepreneurs. Hardest
hit are businesses with operations that require a great deal of
driving — for deliveries or to visit clients, for example
— or that rely heavily on gas-guzzling trucks.
But nearly everyone is feeling the pain at the pump, and many
who’ve resisted raising prices to compensate are at the
breaking point. More and more small businesses are adding
special fuel recovery fees or delivery surcharges, leaving
cost-weary customers unhappy.
But the gas-induced profit squeeze is on, and many business
owners fear that pump prices will go even higher. Employees are
also feeling the pinch, and small employers are trying to help
on that front as well. Some are boosting payments for
employee-incurred mileage, while others are permitting workers
to telecommute more often.
Helping ease the burden of high gas prices on employees has
become a new way for small businesses to maintain morale and
reduce turnover.
Here are some things your business can do to cope with
profit-pinching gas prices:
Sign up for rebates.
The popularity of gas rebate credit cards among small
businesses has skyrocketed. These cards offer rebates ranging
from 2% to 6% at the gas pump, so the higher gas prices go, the
more you get back. Savings of 10 to 35 cents a gallon really
add up.
There are many types to choose from, including cards that give
rebates at any gas station. Some cards offer rebates of 10% for
the first 90 days. But gas rebate cards tend to carry higher
interest rates, so be sure to pay off the card monthly or
you’ll burn your gas savings on interest.
Review gas rebate credit card offers and apply online at
CreditCardGuide.com. The site lists details of 14 different gas
rebate card offers from major banks, oil companies and service
station chains. Click “Gas Rebate Cards” in the
left hand column.
Also visit PumpAndSave.com for similar comparisons and helpful
money saving tips.
Find the cheapest gas in your area. How do you know where that
is? Easy. Just check one of the online gas price comparison
sites such as GasBuddy.com or GasPriceWatch.com. They can tell
you what stations are selling gas the cheapest in your zip
code.
Ship more efficiently. High fuel costs are forcing major
shipping and delivery companies to raise prices and fuel add-on
fees. Comparing shipping costs among different carriers is now
more important than ever. And by consolidating shipments,
switching to smaller and lighter packaging materials and
perhaps drop- shipping from different locations, you can save
money. Two places to compare shipping costs are
FreightQuote.com and RedRoller.com.
Pay attention to scheduling. Many small businesses can save
money by doing a better job of scheduling trips to visit
clients or run errands. Group stops and appointments so you
don’t end up going back and forth to the office three or
four times a day. And if you can accomplish more of your
business by phone or online, avoid the driving altogether.
Switch to more fuel-efficient vehicles. When it’s time
to buy new vehicles for your small business, take fuel
efficiency into account. Lighter-weight vehicles, smaller
engines and hybrids can save your business money.
The difference between a vehicle that gets 20 miles per gallon
and one that gets 30 MPG amounts to nearly $1,000 per year at
today’s gas prices for a typical small business.
A great place to compare side-by-side vehicle information for
gas mileage (as well as safety and other features) is
FuelEconomy.gov, a site created by the U.S. Department of
Energy, that offers a wide range of helpful information, on gas
mileage, gas prices, alternative fuel vehicles and more.
— Daniel Kehrer, editor, Biz.com
