Grocers feel effect of rising gas prices

The charge to bring in Western produce has doubled, a grocer says.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
Area grocers say it's been tough holding down prices as the cost of fuel has soared.
They can take fewer, but larger, deliveries to lessen the impact of rising delivery prices. They can be doubly sure they are buying only what they need.
But sometimes they have to accept less profit if they want to keep prices in check.
"It's destroying the bottom line," said Michael Rulli, whose family owns Rulli Bros. stores in Austintown and Boardman.
Surcharges by local suppliers haven't hurt much because they are between $1 and $3 a delivery, he said.
Increased fees
Much more damaging are the increased fees for bringing produce, pasta and other items from Western states, he said. The charge for these loads has increased from about $1,800 18 months ago to between $3,000 and $3,500 today.
"The shipper and I have to eat most of it," Rulli said.
He figures if he raises prices, he'll sell fewer items and he won't need a full trailer. Bringing in smaller amounts can cost even more because of the loss of volume discounts, Rulli said.
He said he's been able to hold down prices on produce items this summer by making local purchases, such as corn from Columbiana and lettuce from Hartville.
"I can send my own trucks to get it," he said.
Higher prices
Once November comes, however, prices will be higher because produce will have to be shipped in from California, Florida and Arizona, he said.
He added that industry publications are warning that prices for sugar and coffee will increase significantly because these products used to enter this country through ports in Louisiana. Now, they will have to be rerouted through San Diego or Florida, he said.
Tony Frattaroli, owner of Frattaroli's Sparkle Markets in Struthers and New Middletown, said the prices of meat and produce have been particularly affected by higher delivery charges.
"You try as hard as you can to keep the prices down," he said.
Now, he's being told that fuel surcharges are going to be added for more items, such as bread and snacks.
Frank Santisi, whose family operates IGA stores in Austintown, Youngstown and Girard, said "everybody's putting surcharges on."
A few suppliers added surcharges a year ago when fuel prices started to go up, he said. Now, those are going higher and other suppliers are joining in.
He said he plans to hold down costs by accepting fewer, but larger, deliveries. He said the regular prices of items won't be raised because of fuel prices, but the items on sale won't have prices as low as they had been.
shilling@vindy.com