Delivery businesses make changes as gas prices soar
As gas prices are soaring make sure to make the necessary changes to your business. For florists, we must raise our delivery fees as well as analyze delivery routes. You must deliver your product in the most cost efficient way possible.
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Las Vegas delivery businesses make changes as gas prices soar
LAS VEGAS, Nev. (FOX5) – As Nevada and the nation are now paying the highest gas prices on record, businesses are making changes in the way they operate.
“We go everywhere from Boulder City all the way to Mt. Charleston,” said Ryan Monahan, store manager at the English Garden Florist. The Las Vegas company has been delivering fresh flowers across the valley since 1993. According to Monahan, 80% of their business is deliveries.
“It used to cost us $70 to $75 dollars to fill our vans. Now it is costing us $100,” Monahan shared.
With five delivery vans filling up every other day, that’s about an extra thousand dollars a week just to cover the same routes. It’s changing the way they do business.
“We have to be selective on where we deliver. If we go to say Henderson at noon and someone calls at 1 p.m. and wants a delivery to Henderson, we have to tell them that we can’t go back there today because we can’t make multiple trips to the same area in one day because of the gas,” Monahan explained.
As gas prices soar and the cost of flowers from their distributors rise, English Garden Florist plans to keep their prices for flowers the same, but delivery rates will go up.
“We talked about that today. We have been steady at $20 for over 3 years but with the gas prices we are thinking we may have to raise it to $25. We don’t want to do that. We don’t want to put any extra charges on our customers,” Monahan said. “Almost $5 a gallon, you know it is crippling us in a way,” Monahan added.
Experts warn gas prices could soon reach $5 a gallon nationally. Even as high as $7 in some areas of the country.