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    18 Replies Latest reply on Jun 4, 2008 9:56 AM by tnktrucking

    How has the increase in oil prices impacted you?

    MetroGal Adventurer

      I've been reading today about oil and fuel prices increasing. I don't have a business yet (hope so, one day), but as a consumer I'm impacted with rising pricings on what seems like everything. How are the rising oil prices impacting your business? How have you changed the way you operate?
        • Re: How has the increase in oil prices impacted you?
          NatOnline Tracker
          The consequences or rising the oil price are simple, the cost of shipping is higher, but with the economy I cannot rise the prices of the products I am selling. Benefit is less when we offer free shipping, and I cannot promote my business like I should.
          • Re: How has the increase in oil prices impacted you?
            LUCKIEST Guide
            Yes, the economic outlook is grim. How old are you??
            Do you remember newspapers at 5 cents, gas under $1.00 a gallon and postage??
            Now we are going into the holiday shopping season, with rising prices.
            Remember when Black Friday was the day retailers showed a profit.
            How about real estate?? And you hope to have a business one day.
            Good luck, LUCKIEST
            • Re: How has the increase in oil prices impacted you?
              Bluesuit Adventurer
              I am from California where there is sprawl. I have access to decent public transporation where I live, so when I can I do take it. And to comment on the previous poster... I can remember when gas was less than a dollar. Those were the days!
              • Re: How has the increase in oil prices impacted you?
                Lighthouse24 Ranger
                A large segment of my business involves travel (to conduct seminars and to work at client sites), so whenever there is an increase in gas prices, it has an impact. We started using collaborative technologies long ago to eliminate any travel we could -- so whatever we have now is mandatory and just a cost we have to absorb or pass along. That said, our health insurance costs have risen at an even higher rate than gas prices over the past several years -- so while rising gas prices are a concern, they're not my biggest concern.
                • Re: How has the increase in oil prices impacted you?
                  Ed O'Gee Adventurer

                  All my work happens on site with my clients, which means if I don't travel, I don't get paid. I haven't yet had to pass price increases along to my customers but my margins have fallen somewhat. I actually had to turn down new business because travel to the client would have eaten up 60% of what I would make from them.

                  I am based in the Southeast (Columbia, SC) and my prospecting for new business at least in the short term is focused on South Carolina and neighboring states.
                  • Re: How has the increase in oil prices impacted you?
                    marktingcoach Newbie
                    The fuel prices impact just about every business, but then so do a myriad of other factors in the economy. As Lighthouse mentioned, healthcare costs rise steadily. It's the circumstances, such as these, that companies have to be prepared for. It's those who do not take such situations into account that find themselves in precarious positions.

                    As for my company, the added cost is passed on to our clients. With our fixed services, the fees are increased annually, based on projected costs and desired profit margins. This is -- for the most part -- well accepted. For larger projects, the added cost is transparent because the projects are quoted per project, not broken down by line item.

                    Where the country is at this time may lead us into a recession of some degree. Even if that were to happen, and I really hope it doesn't, it can offer opportunities to those companies who can and will take advantage of it. Many companies deeply cut expenses during recessions. But its those companies that can trim yet still effectively market themselves that stand the best chance of having an increased market share when the economy rebounds.

                    Like life in general, business life has its ups and downs -- some your doing, some not. The key is striving to use each situation to your advantage. That, in my opinion, is the greatest enjoyment of owning a business. And whenever I feel that business life has taken a shot at me, I remember what my father told me time and again, "If it were easy, anybody could do it!" If you ever begin your business, I wish you the best of luck and hope you enjoy it immensely.

                    Peter George, The Marketing Coach
                    ThinkTouchPoints.com
                    • Re: How has the increase in oil prices impacted you?
                      puzzleman Tracker
                      I do over 24 trade shows a year and drive to all of them. Last year I drove over 20,000 miles just for these shows. Gas prices do affect my business costs. I have raised prices to cover the free shipping that I offer with my products. When my customers questions the price increase, I tell them the truth that the shipping costs have gone up. I have met little resistance because my customers are more high end.

                      I will be making decisions for next years trade shows to determine if it is worth the drive.

                      Jim
                      • Re: How has the increase in oil prices impacted you?
                        Sweetness Newbie
                        its impacted everything!!!!!

                        I am a distributor in Chicagoland and like Bluesuit I remember when gas was $1.00 a gallon. Now its $3.95 and still goin up..........

                        Just to fill up my trucks is taking a chunk out of our profits and the chicagoland area being as big as it is you could be in wisconsin in the morning and indiana in the afternoon, i.e. alot of gas!

                        Also: not to sound like nostradamus but i have a friend at bp and his belief is that within 20 years, GAS WILL BE GONE ENTIRELY.

                        Good luck GM
                        • Re: How has the increase in oil prices impacted you?
                          clnshirtz Wayfarer
                          we are definitley feeling the effects and suspended a service we used to offer that would pick up and deliver dry cleaning. we may re-introduce it, but require a minimum order.
                          • Re: How has the increase in oil prices impacted you?
                            hagget Newbie
                            Hello Business Networking Partners,
                            The increase in gas prices has touched my family through prices increased in grocery stores and produce markets. I work 30 miles away from home so driving 60 miles 5 days a week. So I found two products that have changed my life www.Biomile.com use Rep.#67632 and Ethos product website www.forearthonline.com/ReduceCO2. I use both products and the gas consumption has been within budget like $40.00 weekly or less. I know of people using $100 a week or more without using gas additives. I use and promote these two products. I also want to mention G-oil from Green Technology that use animal fat instead of petrolium products its being sold in Pennsylvania if you are interested then email me hagvivken@comcast.net. I know the price won't go back down no time soon or never. Be a smart consumer don't use oil from foreign oil invest in Made In America.
                            • Re: How has the increase in oil prices impacted you?
                              Chris.SBS Newbie
                              I'm excited about a new process being introduced by Bell Bio-Energy, Inc. Google it. It looks like this process is coming soon. Depending on how quickly it becomes available, J.C. Bell could be the saviour of our nation. I'm sure he'll make a couple of dollars in the process.
                                • Re: How has the increase in oil prices impacted you?
                                  Matthew Wayfarer
                                  I hope someone comes up with something new. Did you all know it takes 3 barrels of oil to produce what the equiv. would be to one barrel of oil in clean energy? It doesnt add up right now. Electric power, biofuels, all take coal or oil to create....so really your not going green.

                                   

                                  Now some say...well we need to get the saudis to produce more oil. President Bush was lashed for not getting the saudis to make more oil. Think about this though....at these prices where we are today, dont you think the middle east is going to want to produce and sell as much as they can? They basically are at full capacity.

                                  The problem we have is the oil and gas in America is still good in numbers. We have let environmental extremists somehow block expansion of refineries, stop domestic exploratory drilling, and actually have a direct impact. So next time you fill up at the pump make sure you keep greenpeace in mind and thank them for making the problem worse.
                                    • Re: How has the increase in oil prices impacted you?
                                      puzzleman Tracker
                                      Matthew, I agree that the greenies are causing some of our problems. Everyone want more electricity for their cars, ipods, laptops, etc. However, no one wants to have a new power plant built. This is why you see so many utilities talking about conserving electricity. Where else do you see a company say "Do not buy our product."? As far as alternative sources other than coal plants, they defeated putting a wind farm in MA due to not having a beautiful view without windmills. Nuclear power which is the cleanest fuel doesn't get a chance because of the spent rods.

                                      Where do we go??

                                      Jim
                                  • Re: How has the increase in oil prices impacted you?
                                    Bluesuit Adventurer
                                    Over $4.00 a gallon at the pump. Ouch. My company has travel restrictions now on "non-essential travel"
                                    • Re: How has the increase in oil prices impacted you?
                                      jimmymac Newbie
                                      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
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                                      businesses.

                                      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
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                                      • Re: How has the increase in oil prices impacted you?
                                        tnktrucking Newbie
                                        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