Cut Back on Gasoline Costs
Five Ways for Small Business Owners to Save on Gas
Low gas prices are a thing of the past and while the emphasis on the effect of soaring prices is on the consumer, the price of gas is hurting small businesses, too. Try one of these small business tips for saving gas.
Encourage Car Pooling
Employers that pay mileage know that their reimbursement rates are inadequate. Yet, they simply can't afford to raise rates to keep up with gas prices. One solution is to offer a higher reimbursement rate to employees who are car pooling. This encourages them to work together to get to their jobs without spending as much on gas. Even better, since fewer people are driving into work, it actually allows the employer to save money while offering a more competitive mileage reimbursement rate.
Do Local Deliveries with a Scooter
For businesses that offer local delivery of food or small items, a scooter can be a great option, since scooters get a much higher mileage rate than cars or vans. Consider signage for the scooter's saddle bags that states that the driver carries no money and that all orders are paid for by credit card over the phone to help keep the driver safe.
Look for Local Vendors
Vendors are struggling with high gas prices, too. This means that the price of goods from the other side of the country can be much higher than the price of local goods. If an item is grown or manufactured locally, it may be cheaper than items that are being shipped in, since the formerly cheaper vendors from further away are having to increase costs to recoup fuel expenses.
Use a GPS System
While business owners like to think that employees are good, conscientious people who would never dream of running the work truck to a beach two hours from home on the weekend, the sad truth is that many people do use work vehicles for personal use. They are burning through the company's fuel and putting a lot of wear on the vehicle. Luckily, there is an easy fix for this problem. A GPS tracking system allows the company to see exactly where the vehicle is at any given moment.
Keep in mind that this type of system often makes employees very upset, as it makes them feel as if "Big Brother" is alive and well. Consider ignoring infractions like a quick stop at the grocery store on the way home from work, especially if it is only a few minutes out of the employee's way.
Keep Company Vehicles at Work
Driving to and from work in a company vehicle can eat up a lot of gas, especially if the employee lives an hour or more away. Consider keeping company vehicles at the office and having employees drive to work in their own vehicles, where they will be able to switch to the company vehicle for a day's work. This decision could mean a loss of good employees if they cannot afford to purchase a new vehicle to drive to and from work and are not near public transportation.
To make this option work for employees, the company may have to give a little back.
- If public transportation is accessible, one good option is to reimburse employees for bus fare.
- If the nearest stop is not close to the office but employees are able to catch a train or bus near their homes, have someone drive to the nearest train station or bus stop to pick up the employees. This way, the company only uses one vehicle to go a short distance and employees are not forced to catch a cab to get the rest of the way to work.
While these tips on saving money on gas may not completely offset higher fuel costs, they should help make the bill a little smaller. To save even more money, consider other ways for small businesses to reduce expenses.
