Gas price hikes have hit small businesses, like ASCs, particularly hard over the last month, and some companies are considering drastic steps to stay profitable, according to The Wall Street Journal.
A survey of 780 small businesses commissioned by the Journal and conducted by business coaching and peer advisory firm Vistage Worldwide found 52 percent of small business owners reported higher energy prices were affecting their businesses. The average price of gas jumped from $3.53 per gallon in February to $4.27 per gallon as of March 18.
Here are the measures owners are considering, or taking, as they weather inflation.
1. Cutting services and scaling back free deliveries because costs have increased so much to make even local deliveries.
2. Revising contracts with clients to help absorb delivery and supply chain costs that increased with gas prices. For example, a Breinigsville, Pa.-based trucking company, Blue Eagle Logistics, raised its rates 6 percent last month on around 40 percent of the company's contracts that allow fuel surcharges.
3. Pass along the increased energy and gas costs by increasing prices for customers. While ASCs can't increase their rates without renegotiating with insurers, they may see partners increasing prices in the near future, if they haven't already.
4. Boosting employee pay to mitigate higher gas prices as it becomes more expensive for them to travel to and from work. U.S. Energy Development, an Arlington, Texas-based energy company, added $50 to paychecks for each employee as a gas price offset.
5. Allowing more employees to work from home more often so they don't have to use as much gas on their commute. One hospitality staffing firm, the Cutting Edge Elite in New York City, offered extra gas money for carpooling.