07/29/2008
Energy prices are taking a toll on florist's delivery prices and costs of flowers
CONTACT: Melissa Sharp 202-314-2068
WASHINGTON, D.C.--At a press conference held today by the Senate Republican Conference, Virginia small business owner John Nicholson, owner of Company Flowers & Gifts Too! told members of Congress how rising energy costs are impacting his business.
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NFIB member John Nicholson speaks at the Senate GOP press conference about how energy prices have negatively affected his business. Pictured from left to right: Sen. Pete Domenici (N.M.), Sen. Kay Bailey Hutchison (Texas), business owner Brett McMahon from Miller & Long, NFIB member John Nicholson, Sen. Lamar Alexander (Tenn.) and Sen. Robert Bennett (Utah). |
Nicholson, a member of the National Federation of Independent Business, owns Company Flowers with his wife Marnie. They are struggling to keep their delivery charge at $9.50. He notes, "Higher gas for our van alone runs more than $12 per delivery, but we don't want to discourage our customers from shying away from sending flowers."
The Nicholsons have found their wholesale flower costs have risen dramatically, too. "The wholesalers have added a $10 or $12 high-fuel add-on for their own deliveries, and the basic cost of flowers has risen a lot, too, reflecting the hike in jet fuel just to get the flowers from Holland or California." At the moment, he adds, "We're trying to absorb the higher costs so we don't lose too many customers, but after awhile I guess we'll have to raises prices."
According to NFIB research, energy costs are the second most critical problem facing America's small business owners today. More than 37 percent of businesses have energy costs linked primarily to operating vehicles, and the single largest business cost for more than 10 percent of small businesses is related to energy used in the business.
"With gasoline prices at record highs, it's critical that our federal government take action and find solutions such as increasing domestic supplies of oil to help small business owners cope with these costs," said Dan Danner, executive vice president of NFIB. "The longer Congress waits to act, the more it will cost at the pump, putting additional cost pressures on the key contributors to our country's economic well-being, America's small businesses."
