How to Pump Up Profits Despite Soaring Gas Prices

Written by Sarah Pierce

It's a rough time to be a business owner. Everywhere you turn, there's news about the weakened economy and cash-strapped consumers. If you haven't felt the squeeze of soaring gas prices yet, you're lucky -- but not immune.

According to a January Nielsen report, 49% of U.S. consumers have already reduced their spending to compensate for high gas prices, and that number could increase if gas hits the $4 a gallon national average that's predicted for this summer.

So what's a small-business owner to do? First, don't stick your head in the sand hoping the crisis will pass you by. And second, don't be discouraged. Plenty of businesses are not only surviving the soaring gas prices, but prospering as well.

Who's Winning

Scooter dealers across the country pull in significant sales each time the gas prices spike. "Scooter sales were up 64.5% over the previous quarter a year ago," says Mike Mount, of the Motorcycle Industry Council.

Scooters get 50 to 100 miles per gallon.

"Dealers are having more and more people coming through the door and asking about fuel economy figures," Mount says. "Obviously, fuel prices have something to do with sales."

Also benefiting from the soaring gas prices are companies that offer prepared meals and frozen foods. These meals make it easier for consumers to buy in bulk, thereby reducing their driving costs.

"We've seen a significant lift in sales vs. last year or even the year before," says Tim Tsao, vice president of sales and marketing for Gahanna, Ohio-based Kahiki Foods, which distributes premium frozen foods nationwide. Sales are up 20% to 27% over a year ago for the company, partly because "people are less inclined to drive out to restaurants and eat. Instead, they're making fewer trips to the supermarket and buying more so they can eat at home."