Ripple effect of high gas prices hits local business customers

by Leanne Tokars (ltokars@wsbt.com)

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company surcharge, Mishawaka Furniture

This sign no longer applies to the service at Mishawaka Furniture. Due to the rise in gas prices, they've been forced to add on a $15 delivery fee. (WSBT photo)

By Tiffany Griffin

Story Created: Apr 2, 2008 at 3:07 PM EST

Story Updated: Apr 6, 2008 at 9:34 PM EST

Some companies say they have no choice but to pass on the high cost of gas to you. You'll find many places now adding a fuel surcharge to their bill.

It's the ripple effect of high prices and the consumer is having to pay -- even if they're not the one behind the wheel.

The sign for free deliveries at Mishawaka Furniture no longer applies, thanks to the rising price of gasoline.

"We've had to go to a $15 surcharge on fuel for deliveries — for each delivery — not because we wanted to, but because we were forced into it because of the gas costs,” said Ed Franson of Mishawaka Furniture.

He says it's the first time in more than 40 years of business.

"7 miles to a gallon … that's a lot of gas,” said Franson of their delivery trucks.

A local Roto-Rooter Plumbing and Drain has added an $8 surcharge to its bills.

At Tri City Data and Electric in Mishawaka it's also a pain at the pump.

"This is crunch time, so we've added just a little bit of cost, but not much — just enough to keep us on the road," said Johnie Boone.

But Mark Davis, who owns his own lawn service, says the high gas prices might put him out of business.

Last year he says he spent between $500 and $700 a week just on gas.

This year it will be even more.

According to AAA, in Indiana unleaded gas is now about 60 cents more than this time last year. Diesel is about $1.20 more than this time last year.

Davis says passing that cost on is not an option in his business.

“You'll lose accounts," said Davis. "I mean, people are letting you go over $5 a week, if somebody is bidding $5 cheaper."

He's not the only one thinking about competition.

"All of my wholesalers that I get flowers from — Chicago, Michigan, Florida — I pay a surcharge, fuel charge and delivery charge,” said Mary Green at Wygant Florist Co. in South Bend.

She's reworking her delivery routes in order to hold off on increasing her prices just yet.

"I'm going to try not to right now," said Green. "There are a lot of people in town and I have to remain competitive. But, yet again, if the prices go up to $4 a gallon, I guess we're just going to wait and see for right now."

There are some businesses who say the same.

They're holding off for now — definitely feeling the pinch — but want to wait and see if prices go up even more this summer.

They say they don't want to raise prices and then have to raise them again in a couple months.

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