Strategies: How to save money on gas

ByABC News
May 2, 2008, 5:15 AM

— -- Four dollars a gallon! That's the cost of regular gasoline where I live and the national average has skyrocketed to more than $3.60. Four years ago, when I last wrote about the effects of high gas prices on small businesses, the price was a seemingly crushing $2 a gallon. Wouldn't you like to have those prices now?

But while high gas prices are tough on everyone, they place a particularly tough burden on small companies. Everything we order or ship, every sales trip we make, every flight we take costs more. I'm in the publishing business. Books are heavy; they cost a lot to ship cross-country but I can't raise prices.

What's a small business to do? We've got to find ways to save money, especially on anything involving gas or fuel. It's the only way to survive. But cutting down on gas and shipping is not only good for your budget it's good for the country. If each of us could eliminate even a couple of gallons of gas a week, we'd help make America less dependent on oil companies, with their record-breaking windfall profits.

What can entrepreneurs do to save money on gas?

Go digital. It's time to switch to electronic solutions for many aspects of your business. What can you do digitally rather than by physically sending paper, products or people? Can you hold Web conferences instead of traveling for meetings in person? Create digital catalogs instead of printed ones? Send invoices, bills, proposals electronically instead of by mail?

In my company, we're investing in developing electronic "review copies" of our books instead of sending professors the physical texts as a way of cutting down on shipping (and printing) costs. With the price of gas so high, the cost of developing digital alternatives is likely to now be affordable.

Reduce shipping expenses. Shipping costs have gone up and, with no end in sight to higher gas prices, they're going to continue to rise. It's time to seriously evaluate your shipping procedures and packing materials. Consolidate shipments, reduce waste, find lightweight alternatives.