The High Cost of Gasoline

The escalating prices of gasoline took many businesses dependent on delivery of goods for a ride this summer. With prices for regular gasoline hitting close to $3 in some bigger cities, some gift basket companies feeling the pinch were forced to alter their delivery fees and delivery habits.

Robin Renken,  of "A Warm Wish" in Las Vegas, reports they had to raise their typical delivery charge of $10 to $12.50 in May.  Afternoon deliveries considered as "Rush" are now charged $20 each.

As in many cities, afternoon traffic snarls creates more problems. Typically deliveries after 2 p.m. take at least 1hour and depending on the area of town, the round trip can take up to 3 hours for Renken.  “We encourage clients to send deliveries to the recipients place of business. It's more bang for their buck if they have a business relationship, as not only is the client impressed, but also everyone in the office asks who sent it.  This way we are sure that someone will be at the business to receive it, and it can be sent in the morning.”

            But not everyone has changed his or her delivery procedure. Liliya Miller, owner of Oh Wow Gifts, in Regco Park, NY, reports that gas prices hovered around $2.30 per gallon and slightly more for super and premium in New York City.

            Despite the increase, she did not change her delivery fee or travel distance mostly because her delivery person uses the subway to travel. “Unless Mayor Bloomberg changes something, it only costs $70 a month to have unlimited travel on the subway. With the amount of trips I make and my delivery person makes, some months a subway ride is only pennies.  In NYC I charge more for the time it takes to deliver and labor then the cost of travel.”

            Although Miller services the tri-state area including five boroughs of NYC, Long Island, parts of New Jersey, Westchester County in New York and Fairfield County in Connecticut, the majority of her business is in Manhattan. “Ninety percent of my hand deliveries are in Manhattan – just a subway ride away,” she says.