Monday, April 18, 2005

Fuel costs squeeze small businesses

As newspaper editors get tired of writing the same story-- "GAS PRICES SOAR!!!" --they begin to look for fresh angles on the issue. Today, it's the impacts on small businesses:

The bills haven't gone up for most of Rafael Garcia's customers, and he's paying the price.

The gardener shells out $450 for fuel each month, which is $250 more than it was costing him last year to fill up his lawnmower, weed trimmer and 1989 Ford F-150 pickup truck.

"It's awful," Garcia said as he picked up huge palm fronds that had fallen on the forest green lawn at a Beverly Hills home. He asked his customers to give him an extra $25 a week. Two offered $10, the Inglewood resident said, and the rest declined to pay anything additional.

"You explain the gas is expensive, but they say they can't give you more money."

Higher energy costs are causing financial distress across the economy. But for the smallest businesses and independent contractors — such as the people who mow lawns or deliver pizzas or travel across town to translate court proceedings — the pain is particularly sharp because they have trouble demanding more to cover the bigger tab.

Surprisingly, the issue has not made it into an episode of Desperate Housewives...yet...but I imagine the gardener has other things on his mind!