IPA SBRB Study: Two-Thirds of Small Businesses Feeling Impact of
Higher Fuel Costs; Owners Split About Passing On Increases to Customers
BUFFALO GROVE, IL (April 28, 2005) – A majority of small businesses are
feeling the heat of higher fuel costs according to the latest
International Profit Associates Small Business Research Board (IPA SBRB)
poll. Nearly two-thirds (64%) of the small businesses responding to the
nationwide 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.
"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, the largest
privately held provider of management consulting services to small and
medium-sized businesses in North America. "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 International Profit Associates Small Business Research Board
ascertains the opinions of small business owners and managers on a wide
variety of topics related to their own businesses as well as national
and international issues that may impact their operations.
Participants in the poll provide feedback on significant issues and
allow for real-time insight into the state of small businesses
nationwide. The universe of participants is developed from among small
businesses across the United States. More than 220 small businesses
owners and senior managers participated in this IPA SBRB poll. The IPA
SBRB study is a voluntary survey conducted via phone and email. The poll
was structured and supervised through an independent resource.
The latest information about the IPA Small Business Research Board
can be found at www.ipasbrb.com.
International Profit Associates, Inc. ( IPA ) is the largest
privately held provider of management consulting services to small and
medium-sized businesses in North America. IPA and its more than 1,800
professionals offer a wide range of proven and innovative methodologies
to help businesses grow and prosper regardless of the economic cycle.
IPA either provides directly or through its affiliated companies a
comprehensive array of business advisory services, tax and estate
planning services or merger, acquisition and other financial advisory
services in the United States and Canada. More information about IPA can
be found at
www.ipa-iba.com.
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