With so many moving parts to manage, running a business doesn’t leave you with much time to spare. There are so many things to stay on top of that something like the price of gas might get lost in day to day operations. Staying informed of gas and oil prices is crucial to small business owners.
Rising Gas Prices
Rising gas prices affect business in a lot of ways that aren’t immediately obvious. While fuel is a significant component of logistics costs for some businesses, for others it may not play such a big role. However, gas prices affect virtually all businesses, and staying ahead of trends or shifts will only help you better prepare.
Consumers Buy Less
When gas prices go up, consumers cut back on personal spending. Most will put off big purchases like appliances or vehicles, and anything else considered non-essential. Less consumer spending means decreased profitability for most businesses.
Shipping Costs More
Almost all modern businesses require shipping, either to get products or to send goods to customers. Costs associated with shipping naturally go up with fuel prices, regardless of the mode of transportation you use. However, it’s still possible to get a good value by shopping LTL rates, and working with a logistics team that has the knowledge and expertise to get you the best shipping price.
Businesses Aren’t Protected
There are common misconceptions that rising gas prices only affect consumers and that businesses are somehow protected. This is simply not true, and the same financial strain the average individual feels is also felt by most business owners.
Protect Your Business
The cost of gas determines so many aspects of the US economy, and a dramatic uptick can deliver quite a blow to businesses that rely too heavily on low prices. Protect your business by keeping an eye on gas prices, preparing for change and planning for the worst (and best) scenarios.