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Gas prices depress sales

More than 64% of small business owners polled say revenue is down as a result of increased gas prices and more than a quarter of those polled say they will have to lay off employees, according to a survey conducted on DollarDays.com.

DollarDays International, a subsidiary of American Suppliers, Inc. (AASL.PK) is an Internet-based product wholesaler to small businesses and local distributors. The poll was featured on www.DollarDays.com. The company frequently polls its customers about topical issues as it relates to small businesses.

According to the results, 64% says revenue has decreased as gas prices have increased and 58% say their customers are driving less which means fewer shopping excursions and they say they expect it to worsen with the upcoming summer months.

“Unfortunately, this is what we expected from this poll,” says Marc Joseph, president and CEO of DollarDays. “With the recession and increasing fuel and food prices, being a successful small business owner is incredibly tough.”

However, according to Joseph, as fuel prices increase so does online shopping, which is a reason for small businesses to create robust online stores to supplement their neighborhood stores.

Survey results include:

• Only 10% of small business owners are offering financial supplements to help their employees as a result of increased gas prices;

• 57% of small business owners expect a decrease in tourism over the next three months; while 26% don’t expect a change and 15% expect an increase;

• 67% of small business owners have changed their personal travel plans as a result of higher gas prices.


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