BUFFALO GROVE, Ill.- According to a recent study conducted by International Profit Associates, a majority of small businesses are feeling the heat of higher fuel costs.
Nearly two-thirds (64%) of the small businesses responding to the US-based IPA SBRB poll said they are feeling the impact of rising fuel costs.
However, small business owners and managers are split on whether to pass on the increase to their customers with 48% saying they are passing on part or all of the increase and 52% indicating they are not, according to the IPA SBRB poll. This means about one-third of all those surveyed say they are passing on higher fuels costs to their customers.
A variety of comments from the small business owners surveyed indicate that they are aware of the impact of increasing fuel costs and looking for ways to deal with the issue. Some businesses are passing on at least part of the increase by adjusting the cost of service or materials or adding a specific fuel surcharge.
Some businesses say that tight competition prevents them from passing on the increases. One of the poll participants, a business with a truck fleet, is replacing trucks with more fuel efficient models. Many owners indicated that for the present time they are absorbing the increased costs, said the poll.
“Small business owners and managers are caught in an environment where costs are escalating and margins are being squeezed,” said Gregg Steinberg, President of International Profit Associates. “As we celebrate National Small Business Week, small businesses need to proactively implement variable pricing strategies to maximize both revenue generation and profit potential.”
The latest information about the IPA Small Business Research Board can be found at www.ipasbrb.com.
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