IPA SBRB Study: Three-quarters of Small Businesses Feeling Impact of Higher Fuel Costs

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Nearly three-quarters (72%) of the small businesses responding to the nationwide IPA SBRB poll said they are feeling the impact of rising fuel costs. This is increased from 64% who indicated their businesses were being hurt by fuel prices in the previous IPA SBRB poll in April.

Small businesses continue to feel the increasing impact of higher fuel costs according to the latest International Profit Associates Small Business Research Board (IPA SBRB) poll.

Nearly three-quarters (72%) of the small businesses responding to the nationwide IPA SBRB poll said they are feeling the impact of rising fuel costs. This is increased from 64% who indicated their businesses were being hurt by fuel prices in the previous IPA SBRB poll in April.

However, small business owners and managers remain split on whether to pass on the increase to their customers with 49% saying they are passing on part or all of the increase and 51% indicating they are not, according to the IPA SBRB poll. This is essentially the same as in April when 48% were passing on the increase on 52% were not.

"Fuel costs are an example of the kind of fluctuating expenses that small businesses must deal with everyday," said Gregg Steinberg, President of International Profit Associates, the largest privately-held provider of management consulting services to small and medium-size businesses in North America. "The use of variable pricing strategies, whether it is for fuel or other escalating costs, must be implemented in order to ensure ongoing success."

Poll participants indicated they were seeking ways to include increased fuel costs in a variety of ways. Some participants said they are now including fuel costs in their bidding process. One participant said that new contracts were being charged for increased fuel expenses while established contracts were not. One small business said the increased cost for fuel was being reflected in a higher delivery charge. A number of business owners said they were looking for ways to reduce the impact of higher fuel costs, but were wary of charging more because of competition.

The International Profit Associates Small Business Research Board ascertains the opinions of small business owners and managers on a wide variety of topics related to their own businesses as well as national and international issues that may impact their operations.

Participants in the poll provide feedback on significant issues and allow for real-time insight into the state of small businesses nationwide. The universe of participants is developed from among small businesses across the United States. Nearly 250 small business owners and senior managers participated in this IPA SBRB poll. The IPA SBRB study is a voluntary survey conducted via phone and email. The poll was structured and supervised through an independent resource.

The latest information about the IPA Small Business Research Board can be found at http://www.ipasbrb.com.

International Profit Associates, Inc. ( IPA ) is the largest privately-held provider of management consulting services to small and medium-size businesses in North America. IPA and its more than 1,800 professionals offer a wide range of proven and innovative methodologies to help businesses grow and prosper regardless of the economic cycle. IPA either provides directly or through its affiliated companies a comprehensive array of business advisory services, tax and estate planning services or merger, acquisition and other financial advisory services in the United States and Canada. More information about IPA can be found at http://www.ipa-iba.com.

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