Fuel prices have dropped to their lowest level in five years. At a national average of $2.04 a gallon, regular gas is down 45 percent from its 2014 peak of $3.70. Consumers are saving at the gas pump, and small businesses are benefitting as well.
SurePayroll recently conducted a survey of small businesses with fewer than 100 employees to see how they are benefiting from the recent decrease in the price of oil. The survey turned up the following:
20 percent of small business owners note they are already reaping the benefits of lower gas prices.
46 percent are saving money on the cost of transporting goods.
46 percent say company morale is rising due to employees spending less money on gas.
A poll for the National Federation of Independent Business showed energy costs are among the top three expenses for about a third of small businesses.
Among the businesses with high energy costs are those who rely on fleets of vehicles to deliver their product or perform their service. These are the businesses that are now seeing the most cost savings. Examples of such businesses include: moving companies, food trucks, landscaping businesses, trucking companies, funeral homes, and flower shops.
Regardless of your industry, there are benefits to be reaped.
Here are three ways small businesses can take advantage of the low fuel prices:
1. Evaluate Pricing. To cope with rising fuel costs, many small businesses raised their prices either through fuel surcharges or higher base prices. With cheaper gas prices, businesses should consider passing the savings along to customers by lowering prices or offering temporary discounts.
2. Expand Customer Base. With lower fuel prices, small businesses can afford to travel to customers who may have been too expensive to reach before. Consider expanding services to a new neighborhood or area of town to grow the business’s customer base.
3. Reinvest Savings in the Business. You know your fuel costs are down, but by how much? Use accounting software to figure out your exact savings, then reinvest this money into your business–equipment maintenance, new uniforms, additional workers or bonuses for existing workers.
How are low fuel prices good for your small business?
