This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

How 5 Small Firms Handle High Gas Prices

North Raleigh Florist; Raleigh, N.C.
Janice Cutler, president of North Raleigh Florist, is doing her best not to raise delivery prices amid rising gas expenses.

But it sure is difficult. Rising gas prices "definitely affects us directly because we are in the delivery business," Cutler says. "We deliver flowers six days a week."

"People come to us because of the convenience of having something delivered, and if we turn people off because of gas prices then we don't have a business," she says.

North Raleigh Florist has one company van that does the majority of delivery work. When business gets heavier, such as around the holidays, Cutler hires contracted drivers.

In 2008, the last time gas prices rose exponentially, the company put together set delivery areas to save on gas, Cutler says. (It won't go farther than 40 miles without charging extra.) The florist also considered raising delivery prices if prices stayed high.

Thankfully they didn't.

"We did think about it and started to come up with a plan, but it didn't last long enough," she says.

This time, if the florist must raise prices, Cutler says it will be less than $1 per delivery.

"Our delivery prices are reasonable and competitive," she says. "We don't go outside our delivery area unless we charge extra for it. We are starting to think about the threshold for how long we can wait before we raise prices."

Cutler says the company is also starting to get permission from customers to call delivery locations to make sure someone is present to get the flowers. "We don't want to charge somebody another delivery fee just to go back," she says.

But another unintended consequence of rising gas prices is that Cutler's wholesalers are, in certain cases, raising prices. In the end, she'll have no choice but to pass it onto the customer.
3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
F $14.19 1.43%
GOOG $641.47 2.32%
PEP $95.81 1.75%
TM $122.32 1.32%
AAPL $110.78 0.36%


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs