Two-Thirds of Small Businesses Feeling Impact of Higher Fuel Costs

IPA SBRB Study: Two-Thirds of Small Businesses Feeling Impact of Higher Fuel Costs

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.