Businesses Paying For Higher Gas Prices

Crazy gas prices aren't just hitting you at the pumps.
Service and delivery companies facing a landslide of rate increases are trying to figure out how much of the cost they can pass along, without losing your business.

At Mozzarelli's Pizza & Pasta in Anderson, as orders come in, Laura Leigh takes them out. She traded in her SUV for a Honda, hoping to save money with better gas mileage. But she says she doesn't see much hope as she passes the pumps.

"You drive by and you're like- oh.. It just went up 2 cents. At the end of the day, there's just not much left over," says Leigh.

She's more dependent on tips, because the 6% commission added to her salary to help pay for gas and wear and tear on her car, isn't going as far as it used to.
Still, she knows she's not alone.

"It comes out of everybody's pocket," Leigh says.

We asked her boss, Mozzarelli's owner Dan Michael.

"It's affected us on both ends, between delivery drivers as well as on food costs," says Michael. "I've heard of a handful of mostly independent contractors who may be going under."

Companies we spoke to say they pay for drivers insurance, the driver commission and some of them have raised that commission to offset the cost of gas. But they still have to cover salaries and the product itself, which also costs more, because of higher delivery costs.

Michael says even things that should help the gas crisis are hurting the pizza business.
He says wheat prices have tripled because farmers are switching to growing corn, which is being used to make ethanol.

"Pretty much everything keeps going up."

But Michael says at Mozzarelli's, it's all about the customer.

"I don't see a point in cutting back on my delivery area and cutting back on who my customer is. I mean, we're pretty much in it together. Everyone's feeling the punch, you know."

His focus is on a quality product,so if he does have to raise prices, you'll be willing to pay.
He knows there are only so many pieces of the pie.

We spoke to other Anderson businesses feeling the pinch:
Another pizza place tells us its doubled the delivery charge to two dollars.
One flower shop has not only gone up on the delivery charge. but has also cut back on its delivery area.
A furniture store says it has not raised delivery fees and is taking the hit out of its own profits for now.
All businesses said customers have been very understanding of the changes.