Survey Results Show Increased Gas Prices Are Hurting U.S. Small Businesses

June 14, 2006; 01:19 AM

PHOENIX - More than 85 percent of small business owners polled expect a change in revenue as a result of increases in gas prices with most of those already feeling the pinch, according to a survey conducted on DollarDays.com throughout the month of May.

DollarDays International is a premier Internet-based product wholesaler to small businesses and local distributors. The poll was featured on http://www.dollardays.com/ and in the company's online newsletter. The company frequently polls its customers about topical issues.

According to the results, 86 percent expect a negative effect on their revenue as a result of increased gas prices with 71 percent already seeing a change. 83 percent say they are very concerned about how these prices will effect their bottom line and 86 percent say it's getting harder to be a small business.

According to A.A.A. statistics released at the end of May, gasoline prices are at a record $2.93 nationally, 34 percent higher than a year ago.

"Gas prices are already outrageous and we're headed in to the summer and hurricane months where prices typically increase so it's no wonder that small business owners are worried," said Marc Joseph, president and CEO of DollarDays and author of "The Secrets of Retailing or How to Beat Wal-Mart." "Small businesses are the backbone of the economy so we're helping our clients to better merchandise and market their companies to make up for decreased revenues. It's a scary time."

Survey results include:

* 31 percent of small business owners will have to lay off employees if their revenues continue to change, while 64 percent say they won't;

* 5 percent of employers are offering financial supplements to help their employees as a result of increased gas prices while 93 percent aren't;

* 55 percent of the businesses will suffer if tourism decreases while 43 percent will be okay; and

* 71 percent of small business owners have changed their personal travel plans as a result of gas prices.

Joseph encourages small retail stores to carry desirable and high margin items to help increase profit. In addition, he highly suggests that small retailers offer their customers a website where they can buy items so that customers can shop without having to drive.

"Online stores are a great way for consumers to save money since they don't have to pay for gas to drive to the store," said Joseph. "It's also smart for retailers as they can expand their sales beyond their neighborhood."

DollarDays International is a Web-based virtual warehouse, where small business owners can find great deals on small business-sized orders for more than 30,000 consumer products, from toys and household d??cor to apparel, electronics and seasonal merchandise. Due to its innovative business model, DollarDays prices are not only often far below those which most small business are accustomed to, but the offerings include many name-brand products as well as rock-bottom pricing on overstocked and closeout items. DollarDays International helps its customers to select those items, both seasonal and everyday, which sell quickly to promote both a higher inventory turn and better margins. DollarDays recently was named one-of-50 second-stage Arizona "Companies to Watch" by the Arizona Small Business Association. DollarDays' prices are among the lowest available to small businesses. Membership is free and any small business is eligible to shop at http://www.dollardays.com/.