More than 85% of small-business owners polled expect a change in revenue as a result of increased […] gas prices, with most of those already feeling the pinch, according to a survey conducted [by DollarDays] throughout the month of May.
DollarDays is a premier Internet-based product wholesaler to small businesses and local distributors. The poll was featured on DollarDays.com and in the company’s online newsletter. The company frequently polls its customers about topical issues.
According to the results, 86% expect a negative effect on their revenue as a result of increased gas prices, with 71% already seeing a change. Eighty-three percent say they are very concerned about how these prices will effect their bottom line, and 86% say it’s getting harder to be a small business.
According to AAA statistics released at the end of May, gasoline prices are at a record $2.93 nationally, 34% higher than a year ago.
“Gas prices are already outrageous, and we’re headed into the summer and hurricane months where prices typically increase, so it’s no wonder that small-business owners are worried,” said Marc Joseph, President and CEO of DollarDays and author of “The Secrets of Retailing…or How to Beat Walmart.” “Small businesses are the backbone of the economy, so we’re helping our clients to better merchandise and market their companies to make up for decreased revenues. It’s a scary time.”
Survey results include:
- 31% of small-business owners will have to lay off employees if their revenues continue to change, while 64% say they won’t;
- 5% of employers are offering financial supplements to help their employees as a result of increased gas prices, while 93% aren’t;
- 55% of the businesses will suffer if tourism decreases, while 43% will be okay; and
- 71% of small-business owners have changed their personal travel plans as a result of gas prices.
Joseph encourages small retail stores to carry desirable and high-margin items to help increase profit. In addition, he highly suggests that small retailers offer their customers a website where they can buy items so that customers can shop without having to drive.
“Online stores are a great way for consumers to save money since they don’t have to pay for gas to drive to the store,” said Joseph. “It’s also smart for retailers, as they can expand their sales beyond their neighborhood.”