Posted: April 1, 2011

By Teresa Talerico

Teresa.Talerico@Insidebiz.com

As gas prices escalate, small businesses are feeling the pinch at the pump. The most vulnerable are flower shops, couriers, gift-basket retailers and other companies that rely on deliveries or off-site appointments.

One Newport News florist says his gas bill has doubled over the last few months, forcing him to limit bridge-and-tunnel treks for South Hampton Roads deliveries.

"I consolidate them to maybe two trips over to the Southside a week," said Jeff Kremp, owner of Jeff's Flowers Of Course. "I just can't afford to send a truck with one order of flowers to Virginia Beach. It went from 30 bucks to fill up a van to 40 bucks to fill up a van to 50 bucks, and now it's 60."

Nationwide, the average price of regular unleaded is $3.59 a gallon, compared with $2.79 a year ago, according to AAA's Daily Fuel Gauge Report. Crude-oil prices have been climbing due to conflicts in the Middle East and North Africa, particularly Libya.

AAA and local business owners recently shared their tips for reducing fuel expenses:

Map it out. Whether you use MapQuest, a GPS or a spiral-bound street atlas, plan routes in advance and consolidate trips. This strategy works for Anthony and Tammy Rivera, who own three Edible Arrangements stores in Hampton Roads. The national franchise sells fresh-fruit "bouquets" for birthdays, holidays and special occasions.

"The best way to do it is to map it out," Anthony Rivera said. "We tell our drivers to go to Point A and B and C to help cut gas costs."

Deliveries are 75 percent of sales for the husband-and-wife team. Their Norfolk and Virginia Beach stores also serve all of Chesapeake, Portsmouth and Suffolk.

"We can travel, easily, 50 miles to make deliveries," he said.

Dianne Cesvette, owner of Senior Helpers in Virginia Beach, prints Google directions for her home-health aides, who use their personal vehicles to visit clients. She reimburses 51 cents a mile and tries to match caregivers and clients who live near each other.

Cesvette practices the same efficiency for her own schedule.

"I centralize my activities so I don't have to go crisscrossing the city," she said. "I did it before for time management; now I'm doing it for gas also."

Drive smart. These three simple steps can improve fuel efficiency, said Georjeane L. Blumling, spokesperson for AAA Tidewater Virginia:

* Before hitting the road, lighten the load. Remove any unnecessary heavy cargo from the vehicle. Every 100 pounds reduces gas mileage by 2 percent, which could mean spending up to 7 cents more a gallon, according to FuelEconomy.gov.

* Avoid "jackrabbit" starts and stops.

* Slow down. "Remind employees to drive the speed limit," Blumling said. "Driving at 60 mph is more fuel-efficient than driving 70 mph in most cases."

Have clients come to you. In mid-March, the Riveras advertised discounts for customers who picked up orders at the store. Incentives included $15 off a $25 box and $10 off orders of $35 or more.

"We have to service the deliveries that people want, but we try to encourage people to pick up orders," Tammy Rivera said.

If that's not an option, use technology to connect with customers or clients.

"Do more business, as appropriate, on the phone or through e-mail to reduce the number of outside appointments," Blumling said.

Get creative: Try Skype, texting, mobile apps and social media sites such as Facebook or Twitter.

Consider fuel-efficient vehicles. Mobile One Courier, Cargo & Logistics recently added a Unicell van to its fleet in Virginia Beach. The aerodynamic, fiberglass-bodied vehicle gets about 15 miles per gallon, compared with Mobile One's 10-mpg trucks.

President and CEO Eric Brown purchased the Unicell earlier this year, just in time for the latest wave of price hikes.

"We know that gas is always going to be an issue, so we're always trying to be cost-effective," he said. "The Unicell was just a different way of doing business, trying to be more innovative."

Anthony Rivera of Edible Arrangements says each of his two Beach locations - at Brenneman Farm and Hilltop - has a Ford E-150 for deliveries. The vans get about 17 miles per gallon.

"Those are the real gas-guzzlers," he said. "That's $75 to fill it up."

His Norfolk store, in Janaf Shopping Center, uses an older Chevy Colorado truck, which averages 18 mpg and has 95,000 miles on the odometer. He plans to replace it with a 25-mpg Ford Transit Connect, a recommendation from Edible's home office.

"It's going to be the best delivery vehicle for the money," he said. "Now, with everything going on in the Middle East, we're expecting gas to go anywhere from $4.50 to $5. That's why we're strongly looking into this other vehicle."

Perform regular vehicle maintenance. Keep business vehicles in tip-top shape. Don't scrimp on regular maintenance. Routine TLC - "making sure you're changing the oil and checking the air pressure," Brown said - improves fuel efficiency and saves money in the long run.

Rivera just had the Chevy truck serviced last week, as part of its regular checkup.

"We do that frequently, because we put a lot of miles on the truck," he said. "We're trying to get the most out of this truck before we switch."

Trade clients with competitors. It seems counterintuitive, but this strategy not only helps Kremp manage his flower shop's delivery expenses, but it also keeps customer relations blooming.

The Peninsula-based shop specializes in unusual arrangements and rare flowers. For urgent Southside orders or mainstream bouquets, he might transfer those to a florist that's closer to the customer.

"I do more of that now because of the gas prices," Kremp said. "I'll transfer generic things, but not if someone orders a $200 tropical."

And it works both ways. To reduce their own gas expenses, Southside florists often send their Peninsula orders to Kremp.

Last resort: Raise your rates. Nobody likes passing it on to the customer, but sometimes it's a matter of survival.

Mobile One recently increased its fuel surcharge by 4 percent.

"It's hard for our clients, and it's hard for us," Brown said. "But you have to be profitable. If your expenses increase, you have to increase what you charge clients."

That's not an option for Edible Arrangements, whose corporate office dictates the $12 delivery rate for local franchises.

Actually, the Riveras are on the receiving end of such increases. Since they buy their fruit directly from growers - for example, strawberries shipped from California - they're at the mercy of those distributors, who are also struggling with the high price of gas.

"Our produce vendor used to allow us to get deliveries six days a week," Tammy Rivera said. "Now they limit it to four. And if we need it on a day they don't deliver, they charge us a $35 delivery fee." nib

>> For additional small business information visit the online portal at www.coxsbn.com.

>> All content produced under the direction of the news team of Inside Business.