American Small Business Now Passing on Increased Fuel Costs to Customers

85% of small businesses are negatively impacted by fuel costs

BUFFALO GROVE, IL (November 21, 2005) – Although fuel costs have moderated in recent weeks, IPA Small Business Research Board (IPA SBRB) studies conducted from April through October show heightened concern about these costs and a majority of those impacted are now passing them on to customers.

In the most recent IPA SBRB survey, 85% of those surveyed said that rising fuel costs were negatively impacting their businesses. This compares to 72% in July and 64% in April.

Of those who were negatively affected, 62% now say they are passing on those increased costs to customers. In April and July, the figures were 48% and 49%, respectively.

"Whether it is fuel or other variable costs that fluctuate, businesses must have a strategic plan in place to deal with unforeseen events," said Gregg Steinberg, President of IPA, the largest privately-held provider of management consulting and professional services to small and medium-size businesses in North America. "While no one can predict a natural disaster or other event that increases the cost of doing business, every business owner needs to have a plan in place to make the necessary adjustments in their business operation to minimize the negative impact when the unexpected happens."