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Nick Friedman, co-founder of Tampa-based College Hunks Hauling Junk and Moving, says his business has been facing multiple headwinds. High mortgage rates have dampened the real estate market, while rising insurance premiums are eating into operating costs. Now there’s the U.S.-Iran war and a surge in diesel fuel prices that is eating into profit margins. Yet, he doesn’t feel like he can raise prices.
“We are in a bit of a Catch-22,” said Friedman. “Our fear would be if we start raising prices it will hurt our customers.”
Bigger companies, he says, can probably get away with adding fees. As rapidly rising fuel costs are cascading across the American economy, that is exactly what some are doing.
United Airlines and JetBlue both raised prices on baggage this week. Amazon announced a 3.5% “fuel surcharge” on sellers.
