Gas Prices and the Small Business Owner
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Tags: Ed Silva, energy policy, New Mexico Youth Organized, oil prices, renewable energy, small business
Tags: Ed Silva, energy policy, New Mexico Youth Organized, oil prices, renewable energy, small business
We all know that gas prices are skyrocketing into oblivion right? But not many people realize how much these prices are affecting them on a broader scale and how much prices are tied into the cost of oil. Places like grocery stores and chain companies, not to mention the consumer, are forced to deal with higher prices on necessities, like food and supplies, and especially on luxurious items. Oil prices are affecting everyone in some way, (not including travel costs) if not directly.
The ones most affected by soaring gas prices are small business owners, who are the treasure of their local communities, as well as the backbone of the economy.
As oil prices continue to rise so does the cost of transportation, shipping, supplies, and employee compensation. As a result these small businesses see a decreased profit and are forced to raise the prices of their products. Therefore, costumers are less willing to travel to a location and even more unwilling to pay the increased prices. Because of this small business owners are going to see a further decrease of profit and might be forced to cut employees or struggle to stay afloat.
Ed Silva, of Albuquerque's Duke City Graphics, said that gas prices are, "most definitely" affecting how he does business and that he has seen a 10-15% decrease in sales. Ed has owned his screen printing business for 25 years and although it is usually a fairly low cost system since gas prices have gone up, "quite a bit of people are reluctant to pay" for something like custom t-shirts for which Ed has to pay an extra .25-.45 cents each shirt. Ed says that he first noticed the effect of gas prices in February of 2008. Because of the nature of his business Ed travels around town throughout the day making various pick-ups and drop-offs of supplies and merchandise. Now, because of gas prices he needs to plan ahead for errands and pick-up everything in one run. This takes time out of his other tasks and if something is forgotten the extra trip will cost him extra time and money.
"The cost of fuel has affected everything, from clothes, to food stuff, to supplies. As a small businessman that's the major problem. Some people attribute it to the election year but this has been since before", says Ed. Since the price of running his business has increased Ed has had to make changes to how he runs things. Before he could get the equipment running and ready for when the employees arrived, but now he has to wait until everyone shows up. He even shuts down early and has switched to a four-day work week to conserve energy and the natural gas that some of the machines run on. Ed feels that the four-day work week does not hurt production but rather increases it, "Workers are less tired on a four day work week and after a three day weekend they are more refreshed and energized."
Ed Silva is just one of many small business owners who are coping with the problem of higher gas prices. Rather than giving up many are working around the prices and finding creative ways to overcome the issue. So, as others wait for something to be done about oil, we at New Mexico Youth Organized will be working towards renewable energies. I, personally, will be pushing for solar powered hover boards. So there you go, a thought in the mind of a girl.
The ones most affected by soaring gas prices are small business owners, who are the treasure of their local communities, as well as the backbone of the economy.
As oil prices continue to rise so does the cost of transportation, shipping, supplies, and employee compensation. As a result these small businesses see a decreased profit and are forced to raise the prices of their products. Therefore, costumers are less willing to travel to a location and even more unwilling to pay the increased prices. Because of this small business owners are going to see a further decrease of profit and might be forced to cut employees or struggle to stay afloat.
Ed Silva, of Albuquerque's Duke City Graphics, said that gas prices are, "most definitely" affecting how he does business and that he has seen a 10-15% decrease in sales. Ed has owned his screen printing business for 25 years and although it is usually a fairly low cost system since gas prices have gone up, "quite a bit of people are reluctant to pay" for something like custom t-shirts for which Ed has to pay an extra .25-.45 cents each shirt. Ed says that he first noticed the effect of gas prices in February of 2008. Because of the nature of his business Ed travels around town throughout the day making various pick-ups and drop-offs of supplies and merchandise. Now, because of gas prices he needs to plan ahead for errands and pick-up everything in one run. This takes time out of his other tasks and if something is forgotten the extra trip will cost him extra time and money.
"The cost of fuel has affected everything, from clothes, to food stuff, to supplies. As a small businessman that's the major problem. Some people attribute it to the election year but this has been since before", says Ed. Since the price of running his business has increased Ed has had to make changes to how he runs things. Before he could get the equipment running and ready for when the employees arrived, but now he has to wait until everyone shows up. He even shuts down early and has switched to a four-day work week to conserve energy and the natural gas that some of the machines run on. Ed feels that the four-day work week does not hurt production but rather increases it, "Workers are less tired on a four day work week and after a three day weekend they are more refreshed and energized."
Ed Silva is just one of many small business owners who are coping with the problem of higher gas prices. Rather than giving up many are working around the prices and finding creative ways to overcome the issue. So, as others wait for something to be done about oil, we at New Mexico Youth Organized will be working towards renewable energies. I, personally, will be pushing for solar powered hover boards. So there you go, a thought in the mind of a girl.
