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Updated: 4:44 AM Nov 20, 2008
Gas prices down, but other costs still up
Some businesses hiked up delivery charges after gas spiked at 5 dollars a gallon. Well now that prices have come down we checked to see if your costs are also dropping.
Posted: 10:04 PM Nov 19, 2008Reporter: Heather Haley Email Address: heather.haley@wvlt-tv.com |
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KNOXVILLE, Tenn (WVLT) -- The price of gas not only affects you at the pump, but local businesses as well.
Take for instance those hiked up delivery charges from local businesses, you've been paying for months after gas spiked at 5 dollars a gallon.
Well now that prices have come down we checked to see if your costs are also dropping.
For some businesses delivery is not the only part of their business that's affected by gas prices, but for other businesses the lower amount at the pump, means they can now charge you less.
Crown cleaners has been in business in Knoxville for years, and owner Don Holecek found it hard to bear the gas price burden.
Don says "It affected the dry cleaning industry as a whole. It's certainly not a luxury but it's one of those items people have cut out or cut down on."
So Don had to add a delivery fee and he says "the initial costs was $6, it actually went up to $6.25 at one point."
The good news is gas prices are back down, which means his customers can afford to drive to him for their cleaning needs and he can afford to go them.
Don says "we've seen the pump receipt go from $100, to 80, to about 65, to around 55."
Over at Crouch Florists, owner Judi Brockman decided to tighten their budget when prices went up.
Judi says "Our biggest expense probably is delivery."
Judi decided to get through the higher gas prices, by being more efficient; she says "where we might have a route of 4 or 5 deliveries going in 1 direction, we definitely tried to get 10 to 15."
At Milano's Pizza and Grill, owner Mahmet Ecirli found the price to fill up the delivery vehicles was not his only rising expense. He says "basically every 4 months I had to adjust my prices because all the cheese and flour and all the food costs just kept going up."
Mahmet added a $1.50 delivery charge that goes straight to the employee, but his food costs are still up so he runs in store specials at his buffet.
Mahmet says "when the gas price goes up, everything goes up."
Some local business owners say they hope to see gas prices drop even more, or at least stay where they are, because that not only helps them and their employees but helps the costs their customers incur as well.
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