With higher prices on food, rent, and gas—inflation is impacting everyone.
Maínor Sargento owns M.S. Landscaping in Palm Beach County.
Like many Latino entrepreneurs who often rely on gasoline-fueled machinery, current fuel costs are severely impacting his business operation costs and bottom-line profits.
“There has been a 30% increase in costs,” said Sargento, “because all of the equipment we use to cut the grass and to do garden work uses gas.”
He even had to reduce his number of clients to cut costs.
“For Long distance locations, I had to cut it off from my list. I had to revise my schedule to be able to work and not travel far for just one client,” said Sargento. “At times, I did have to cancel some.”
Florida’s gas average is just over four dollars, according to the American Automobile Association (AAA).
In Palm Beach County, gas is $4.24. In Martin County, it’s $4.09. In St. Lucie and Indian River Counties, gas is just over $4.
“I think there is a light at the end of the tunnel, but I am not so sure how soon it’s going to be,” said William Luther.
Luther, an economics professor at Florida Atlantic University, says locally owned businesses could see low profits in the short term because of the rise in costs.
“To avoid suffering those lower profits in the longer term,” he said, “they will have to raise their prices in line with the general level of inflation that’s prevailing in the economy.”
Luther says people should still expect to see prices continue to rise in the next year or so, and prices of services are no different.
Sargento says he’s holding off raising his landscaping price, at least for now.
“It wouldn’t be unfair to apply it but it all depends,” he said, “it’s a balance.”