Many businesses, in particular entrepreneurs, are facing a double-edged sword – fuel prices that have increased by more than R10 in the past year and load shedding.
All agree they walk a fine line when trying to balance out the added expenses and/or lost income as well as smaller profit margins as a result of load shedding and the higher fuel prices by increasing their prices.
“You really have to think hard to find the middle ground,” said the owner of a shuttle service. “You need to take the extra costs into account, but you also have to bear your customers and what they can afford in mind. You are forced to raise your prices to cope with the extra costs, but if you raise your prices too much you might lose customers who can no longer afford your service.”
To alleviate the petrol price increase, he said, he has had to find ways to cut the business’ expenses.
“Instead of returning after dropping a client off in Cape Town, for instance, my drivers have to stay there longer in the hope of getting paying customers for the return trip.”
Riana Venter, co-owner of Unisex hair salon in Hermanus, said she decided to invest in a generator to cope with load shedding.
“We lost a lot of business as result of load shedding,” she said. “Buying and running the generator is an extra expense, but we had to take this step as we can’t blow-dry clients’ hair when the power is off. Hopefully this (having a generator) will bring in more clients.”
Naeema and Ebrahim Ardendorff, owners of Gone Grilling restaurant in Hermanus, say as a result of load shedding they too are struggling to keep their customers happy.
Currently they have to close shop whenever load shedding strikes, even though they use mostly gas and fire to cook. The biggest problem, says Naeema, is that load shedding occurs during the eatery’s busiest period, late afternoon. “There’s still some equipment, such as fryers and warmers, which work with electricity. We opened the business only in April, so there aren’t really funds yet for a generator. It would also be impractical because we have nowhere to put it.”
The best, albeit more costly, option to cope with load shedding, says Naeema, would be to install an inverter.
Morné van Niekerk of Garden King gardening services said although load shedding doesn’t affect his business he definitely felt the sharp increase in fuel price on his pocket.
“My bakkie and equipment all use petrol so the fuel increase has hit me hard,” he said. “My profits are lower, and I had to increase my prices, although I had to be careful not to increase it to the extent that it scares customers off.”
To cut his petrol expenses Van Niekerk has to plan his routes very carefully. “Instead of doing jobs in different areas on one day, I now focus on doing jobs in a specific area on certain days. The fuel price is up by more than R10 over this past year, which is ridiculous! Government must do something, for people are suffering.”