OMAHA, Neb. (KMTV) — OPEC's latest decision Wednesday to cut oil production will likely cause gas prices to rise once again. Prior to this, gas prices had been decreasing after hike's over the past few months.
The constant fluctuation has caused uncertainty for local businesses.
"Typically for mowing, we give a quote to the customer at the beginning of the season. We basically commit to that price the whole season assuming fuel and labor costs at that moment. We do expect small fluctuations in fuel but when it doubles or increases by 50% we do have to make adjustments," said Cody Kanger, owner of Kanger Lawns. "So far this year, certain customers, we have had to make pricing adjustments. There’s not a lot of huge margins in mowing."
Kanger says his fuel costs have nearly doubled this year, compared to last year. One rig, which includes a truck, mowers, trimmers and blowers, uses about 70 gallons of fuel per week. They have multiple rigs.
"So the same amount of usage last year (at) those prices, we would’ve spent half as much in fuel. (We would've) had five, six, seven-thousand dollars more in our pocket to have better equipment, service customers better, hire additional personnel," Kanger said.
Unfortunately, not only have they spent more due to fuel prices, but they've also lost customers due to raising service costs.
"Fuel has shrunk our bottom line and me, as an owner, I have to balance and decide: do we take the hit short term hoping gas prices will come down? Do I need to risk maybe rocking the boat with customers with a price increase to make sure we are profitable with the ones we have so we’ve juggled with that?" Kanger said.
He may be presented with those difficult decisions once again, as winter looms along with another gas price hike.
"Especially with snow removal, we can only take on so many customers and truly serve them to the best of our ability. We will have to make pricing adjustments so the ones we do have we are turning a profit on and can survive into the next season," Kanger said.
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