Bailey Terhorst moves products for commercial businesses and private homeowners, anything from pallets, to large television sets, furniture, and building supplies. But lately with gasoline at $3.99 a gallon, fuel is taking a big bite out of profits.
“it just takes a lot out of your pocket you got to pay the rent, you got to pay groceries and all that stuff, and it’s hard when all your profit is going into your gas tank,” said Terhorst.
According to Triple-A, Minnesota gasoline prices averaged about $3.94 a gallon in mid March. That’s up from $3.34 in February. It’s a big jump from $2.76 one year ago.
The day we talked with Terhorst, the cost to fill his truck’s tank was more than 60 dollars, and it wasn’t empty when he started.
“Just even 5 or 6 months ago it was two dollars and some cents a gallon. And that was do-able but if they keep rising up, then I will have no other option but to raise the prices,” said Terhorst. “Sucks to do it but it just has to be done.”
As a young company just getting established, Terhorst says raising prices is a last resort.
“You don’t want to lose customers, loyal customers and customers that will keep coming to you. You want to keep those ones. It’s hard especially when you give them a certain price and it’s that price every time and you raise it and they’re like we can’t do that you know.”
He’s spending $350 to $450 a week on gasoline these days, double the cost of one year ago.
“I don’t see it going down anytime soon it just seems like it’s going to keep going up.”
One hopeful sign is the price of oil seems to have topped out. President Biden is urging the industry to quickly pass along those savings to drivers.
