Gas Costs Hit Landscape Contractors

Gas prices hovering around $3 a gallon in late summer were hitting landscape business owners harder than many other trades.

“Here’s our dilemma,” said Rita Marshall, one of more than 100 employees at Volunteer Lawn Inc., a Fountain City, Tenn. company that runs 40 trucks.

“There’s only so much a person is willing to pay to have their grass cut?EUR??,,????'??+and each individual has a different threshold?EUR??,,????'??+but if they’re paying $30 to get their grass cut and we say we have to increase it to $35, for that individual customer, $35 might be the threshold where they say, ‘No, I’m going to do it myself,’ ” Marshall said.

The Flower Market and Landscape Design, a florist and landscaper, has increased its flower delivery charge $1, to $7, in the 37919 West Knoxville Zip code that it primarily serves. Prices may have to go up more for more distant deliveries.

With contracted landscaping service, however, the company is in a bit of a bind.

“We’ve already given the people the agreement to sign. We can’t increase it any,” said Allen Douglass, vice president. “If we have to go 24 miles (back and forth to a client) every single day with three vehicles, that’s going to have a significant impact on us.”

Tacking on extra charges or simply charging more may be the only way to salvage profit margins, small-business people said.

?EUR??,,????'??+Knoxville (Tenn.) News-Sentinel