Delivery services rolling on gas prices
Inside Business Staff Writer
Glenwood Springs, CO Colorado
GLENWOOD SPRINGS, Colo. ” Escalating gas prices have actually been beneficial to some local delivery businesses.
OSM Delivery and Sandy’s Office Supply have made changes to their operations in response to the skyrocketing gas prices. But people dismayed by climbing gas prices seem to be opting to pay for delivery instead of making that extra trip.
“I think my business has flourished because of the gas prices,” said Janet Principe, owner of OSM Delivery.
OSM raised its gas surcharge recently, bumping the price of a Glenwood Springs-to-Aspen delivery from $11.33 to $12. The price for delivery to Grand Junction increased from about $18 to $20. Drivers are now paid 51 percent of the delivery fee instead of 50 percent to help mitigate gas prices ” adding an extra $8 to $15 a day, Principe said.
Four of the company’s nine drivers now drive Toyota Yarises ” a car that gets about 45 miles per gallon, Principe said.
The OSM delivery area ranges from Vail, Grand Junction, Aspen and all points in between. The business makes private deliveries and will do errands like picking up pet food from El Jebel and taking it to an upscale Starwood residence near Aspen for someone who doesn’t want to drive. Principe said business has reached about 250 to 275 deliveries a day. The company’s purchase of a similar business two months ago, Alpine Delivery, added about 50 deliveries per day.
When the business raised rates about two years ago, people complained. But now, people don’t question OSM’s prices since gas pumps gobble money faster than slot machines.
During the recent price change, no clients complained and some people said OSM should have raised prices more, according to Principe.
In response to increased fuel costs, Sandy’s Office Supply has made efforts to consolidate deliveries on longer trips and has centralized its routing out of Glenwood Springs. Sandy’s delivers office supplies from Aspen to Glenwood Springs, and from Parachute to Vail.
“It’s probably actually improved our delivery business as well because people don’t want to make that extra trip,” said Justin Barrow, Sandy’s general manager.
On July 23, Colorado’s average price for regular grade gas was about $3.07 per gallon.
The U.S. average was about $2.96 per gallon, according to the Energy Information Administration Web site. Glenwood Springs gas stations were hovering around $3.19 on Thursday.
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