Nearly a third of distributors in a recent survey by Channel Marketing Group and Allen Ray Associates say that increased fuel costs have significantly impacted profitability” because they can’t pass it on to customers. Another 37% said fuel costs somewhat impacted profitability, as most of the increase cannot be passed onto customers. About 22% said the fuel costs have had limited impact, as they have absorbed some but passed most onto customers.
 
About half of respondents had calculated incremental costs, seeing an increase of 25%-40% over prior-year expenses.
 
How are they addressing rising costs? More than half are absorbing them. Another 25% say they would like to add a surcharge, but because competition hasn’t, they are afraid they will lose business. About …