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

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.

Thursday, Apr 24 at 12:02 AM Mike Doe wrote ...

I think we can all agree that the price of gas is, well, horrible right now. The bickering of the business problems is sort of silly considering we are all feeling it, unless you happen to walk EVERYWHERE. Even then though you still have to pay the higher prices in the store.

Thursday, Apr 3 at 11:43 PM Mr. Political Correcto wrote ...

John, it's not polite to ask people to compare their piles to yours, at least not on a first date.

Thursday, Apr 3 at 8:02 AM C.J. wrote ...

SO WHO EXACTLY DOES IT TRICKLE DOWN TO STEVE? I'LL TELL YOU...THE NON-BUSINESS OWNING CONSUMER WHO HAS NOBODY BELOW HIM TO PASS HIS PROBLEMS OFF TO!

Thursday, Apr 3 at 5:27 AM STEVE wrote ...

OBVIOUSLY NONE OF YOU RUN A BUSINESS. I HAD ONE FOR 20 YRS. AND MONEY IS SO TIGHT TRYING TO BALANCE THE BILLS. IF YA DON'T MAKE MONEY THEN YOU DON'T EMPLOY ANYONE OR PAY TAXES OR BUY YOUR BUSINESS GOODS WHICH SOMEELSE HAS MADE, WHOM IS EMPLOYED. ITS A TRICKLE DOWN EFFECT. YOUR IN BUSINESS TO MAKE MONEY. SO IF YOU DON'T WANT THE OIL COMPANIES TO MAKE MONEY QUIT BUYING FROM THOSE OVERSEA TOWEL HEADS..AND CUT BACK YOURSELF

Wednesday, Apr 2 at 9:19 PM JIMBO wrote ...

Reminds me of the classic car salesman line "I'm gonna lose money on this deal", yeah right! The average consumer gets stuck twice, not only paying for their own higher gas prices but also all the whiney business owners,truckers and corporate farmers. Don't believe them any more than big oil!!!

Wednesday, Apr 2 at 8:42 PM John wrote ...

I like to compare my pile to yours! Bet the person that works for himself is bigger.

Wednesday, Apr 2 at 8:19 PM Jim wrote ...

These businesses are not losing money because of having to deliver furniture or a service to your house, they are just making as big a profit as they want, so they pass it on to us. You mean to tell me they aren't making enough already on the markup of furniture ?? Give me a break.

Wednesday, Apr 2 at 5:01 PM Economics 101 wrote ...

One important fact everyone seems to forget: ALL costs of running a business are passed on to the customer. Contrary to popular myth, businesses are not sitting on piles of idle money. All of you who are clamoring for more taxes on businesses might as well be clamoring for higher property taxes or income taxes, because either way, you'll be paying!

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