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Click to view jimmymac's profile Authority jimmymac 8 posts since
Dec 28, 2007
15. Re: How has the increase in oil prices impacted you? Jun 2, 2008 11:11 AM
Good morning Metrogal,

Great question.

Small and mid-size businesses (SMB) are acutely susceptible to the negative impact of numerous macroeconomic risk factors. Macroeconomic
risk factors such as inflation, interest rates, market cycles, market
regionalism, credit and labor availability, and fuel costs conspire to
drain profitability and financial health of small and mid-size
businesses.
[http://sum2llc.blogdrive.com/images/business%20failure.jpg]

Though issues of scale are principal culprits that enhance the_ negative impact_
of macroeconomic factors on SMB's, other factors such as risk
concentration in product markets, clients, and supply chain; silo
business functions and lack of specialized treasury functions to hedge
risk and maximize capital allocation returns also contribute to
enhanced macroeconomic risk profile of SMB's.

To
help SMB's to better understand and manage the impact of macroeconomic
risk factors on their business; Sum2 is providing the Profit|Optimizer
Macroeconomic Test to small business owners and managers at no charge. The
test is a module from the Profit|Optimizer product which provides a
thorough risk assessment and opportunity discovery review of a small
business enterprise.

The test can be down loaded by visiting the bottom of this page: http://www.sum2.com/915/index.html
We hope to be of service. Take the test.

We frequently blog on macroeconomic issues that affect small businesses

Our blog can be found here. http://sum2llc.blogdrive.com/

We wish all continued success.

Cheers,

James McCallum
973.287.7535
www.sum2.com

Click to view tnktrucking's profile Professional tnktrucking 4 posts since
Jun 1, 2008
16. Re: How has the increase in oil prices impacted you? Jun 2, 2008 11:18 AM
I own a trucking company, fuel (Diesel) last year cost on average $2.30 to $2.50 per/gal, As of yesterday we paid $4.79 per/gal ( to fill this truck it took 145 gal) do the math, $695.85. You can raise your fuel surcharge (as of today 33%), but only so much, then you price yourself out of the market.

so to answer your question YES IT HAS!!

Ken
Click to view puzzleman's profile Mogul puzzleman 293 posts since
Oct 11, 2007
17. Re: How has the increase in oil prices impacted you? Jun 3, 2008 7:10 AM
in response to: tnktrucking
TnkTrucking, I am curious. Is it still profitable for you to do business? How do truckers break even with the fuel increase so steep? Isn't fuel now one of your highest expenses? What are you doing to reduce your use of fuel?

I would like to know how you are dealing with this situation as some of it may apply to my situation.

Thanks, Jim
Click to view tnktrucking's profile Professional tnktrucking 4 posts since
Jun 1, 2008
18. Re: How has the increase in oil prices impacted you? Jun 4, 2008 9:56 AM
in response to: puzzleman
Jim,

As a owner of a small company, there is really nothing I can do. I can raise my surcharge higher, (currently 35%) but there is a limit to that. Larger companies can absorb more than I. I can raise my rates, but then I lose competitiveness. It's tough!!! I just hope I can ride out the storm....

Ken
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