Will Gas Prices Slow Your Basket Sales?

May 5, 2008 · Filed Under Deliveries · Comment 

Copyright 2008 Shirley George Frazier. All rights reserved.Last Tuesday, my area’s newspaper (The Record) published a front-page story on gas prices and how small businesses are coping with deliveries, charges, and making sure costs are covered without losing lots of customers.

The reporter interviewed several businesses including a limousine firm, pizza shop, and mattress distributer. The company that most interested me was a flower shop. They recently increased the price of flower deliveries from $7.50 to $8.50.

“That hasn’t had much effect on orders,…People know it costs them just as much to drive here and pick it up.”

Rather than increase their local $1.25 delivery fee, the pizza shop owner raised the price of a plain large pizza from $11.75 to $12.50.

Are you making sure that your delivery costs are covered? Here are three tips, one which hopefully fits the way you do business.

1. Schedule gift basket deliveries for once daily. Deliveries outside of this schedule (rush or special orders) include a gas surcharge fee.

2. Resist driving to retail stores to buy gift basket inventory. This practice consumes many gallons of gas that’s best conserved for marketing purposes.

3. Become familiar with streamlined ordering from manufacturers and distributors than you may have in the past. Such firms are listed on the wholesalers’ page and at Gift Basket Wholesale Supplies. Expect a nominal increase in their delivery charges, which is offset by the increase in your gift basket prices.

How are you coping with the gas price explosion? Is it difficult for you to raise prices, or are you absorbing the cost on your own?