CHARLOTTE, N.C. -- High gas prices have some businesses losing money instead of passing the cost on to customers.
But that may not happen much longer, especially if gas hits $4 a gallon.
It costs Michael Erwin $1,500 a week to fill his moving trucks and dump trucks with diesel fuel.
His company, A-1 Clean Up and Movers on South Hoskins Road, does a little bit of everything as a 20-year, family-run business
"Whatever the customer needs, we provide it for them,” Erwin said.
But higher gas prices have Erwin lowering moving rates, not raising them.
He used to charge $85 an hour, but dropped it to $75 an hour. Erwin says due to rising gas prices, more people are moving on their own so they don't have to rent trucks and pay the fuel costs.
Erwin also says for every moving company like his there are a couple of no-name dudes armed with a pickup and rickety trailer trying to undercut licensed and bonded movers by charging less as gas prices rise.
"It's hard to raise them because there are so many people out there that are not licensed and are doing it with their own trucks or renting U-Hauls. If you go to raise your rates to try and compensate for gas prices, people are like, ‘Well, I can get it for this cheaper,’” Erwin said.
Lowering rates eats into profit, but raising rates raises the risk of losing customers.
"I don't want to lose them over 15 bucks, trying to raise my prices when I'm worried about my men, keeping them working out there for their families, keeping my business open,” said Erwin.
Erwin says $4 a gallon is the magic number that could force him to raise his moving rates back to $85 an hour because the longer gas prices rise, the less he can absorb the hit.
