[Congressional Record Volume 147, Number 115 (Thursday, September 6, 2001)]
[Extensions of Remarks]
[Page E1601]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E1601]]
             IMPACT OF FUEL COSTS ON SALES REPRESENTATIVES

                                 ______
                                 

                        HON. DONALD A. MANZULLO

                              of illinois

                    in the house of representatives

                      Thursday, September 6, 2001

  Mr. MANZULLO. Mr. Speaker, I rise today to offer the attached 
comments of the National Alliance of Sales Representatives Associations 
on the impact of rising energy costs on small businesses. As Chairman 
of the Small Business Committee, I will continue to review the issues 
raised in the attached letter.

                                    The National Alliance of Sales


                                 Representatives Associations,

                                      Atlanta, GA, August 2, 2001.
     Subject: Impact of Increasing and Volatile Energy Costs on 
       Sales Representatives

     Chairman Donald Manzullo,
     House Small Business Committee,
     Washington, DC.
       Mr. Chairman: As Chairman of the Bureau of Wholesale Sales 
     Representatives and President of the National Alliance of 
     Sales Representatives Associations I have the opportunity to 
     discuss the impact that increasing and volatile energy costs 
     with many other sales representatives. What follows are a 
     summary of my experiences but they are typical of what is 
     happening to sales representatives across the country. The 
     National Alliance of Sales Representatives Associations 
     (NASRA) is based in Atlanta and represents more than 10,000 
     sales representatives who work in industries like apparel, 
     shoe, gift, furniture, and other related sectors.


                    The Impact of Rising Fuel Costs

       When energy costs wildly fluctuate as they have in the last 
     four months, sales representatives who are independent 
     business owners, find that they have to absorb the rising 
     energy costs with no ability to pass any of the cost 
     increases on to their customers. As a result a season that 
     has already been hurt due to a slowing economy goes into the 
     proverbial tank as we are all forced to absorb cost increases 
     that cannot be reflected in our commissions.
       Here are some personal illustrations of how these costs 
     increases have affected my business. My territory consists of 
     Pennsylvania, Maryland, New Jersey, Delaware and The District 
     of Columbia.
       I travel in excess of 50,000 road miles per year and I make 
     a minimum of five trips annually to key areas of my 
     territory. In addition, I attend twenty to twenty five trade 
     shows.
       My travel is done in a mini van racked for the purpose of 
     housing my samples. Naturally the added weight decreases fuel 
     efficiency but nevertheless the vehicle is critical to my 
     business. Within 30 minutes of my home you can presently find 
     gasoline prices ranging from $1.65 to $1.16 for regular 
     unleaded and I am aware that prices across the country have 
     been even higher.
       Some sales reps have chosen to purchase diesel fuel motor 
     homes for the purpose of efficiency. During the past few 
     months, diesel prices in my area have ranged from $1.70 to 
     $1.31. At recent prices it makes the investment in travel a 
     real issue. Most diesel vehicles are commercial, busses and 
     trucks and the trucking industry has requested they be 
     allowed to pass on these increased costs. Commissioned sales 
     representatives who drive diesel or gasoline powered vehicles 
     do not have the ability to pass on rising costs nor petition 
     congress for such rebates.


                Rising Fuel Costs Affect in Other Areas

       If it were only the rising cost of fuel perhaps the impact 
     would not be so great. These same rising costs effect every 
     phase of my business and my life.
       1. The hotels I use have added energy surcharges without 
     notice.
       2. Food and restaurant prices have gone up due to 
     transportation costs.
       3. Airlines, busses and trains have also added energy 
     surcharges.
       4. The convention centers and hotels that host our trade 
     shows have new energy clauses in their leases.
       5. Retail prices on my products have increased because of 
     rising production and shipping charges. When retail prices 
     rise retail slows which directly impacts my wholesale 
     business.


          California Impacts Sales Representatives Nationally

       As a final insult many sales representatives including 
     myself have been affected by the energy crisis in California. 
     My business begins with samples. Recently, I have had delays 
     in getting samples, especially from California. This is due 
     largely to rolling black outs which has slowed production. If 
     I do not have my samples shipped on time so that I can 
     display them at the trade shows my time and money invested in 
     trade shows is lost.
       At this time I cannot plan my business because the costs 
     keep changing. They never go down and yet my income does not 
     increase proportionately. A business that is run without the 
     ability to plan is doomed to failure.
       All costs rise with rising energy prices. Where does it 
     end? It seems to end with me.
       On a more personal note our family had to make a very 
     difficult decision. After more than 30 years in a business he 
     loved my husband has left the industry. There can be no doubt 
     he was literally forced out by these rising costs. 
     Unfortunately, more and more of my colleagues are making 
     similar decisions. It is well known small business is the 
     engine for our country. What will happen when we are unable 
     to run the engine?


                               Solutions

       Congress needs to look for long-term solutions to maintain 
     some level of stability in energy costs. The quick fixes have 
     been meaningless to me. We need a long view energy policy. We 
     MUST put stability ahead of volatility so that small business 
     owners can plan.
       Mr. Chairman I wish to thank you for looking into this 
     issue and for your assistance to the National Alliance of 
     Sales Representatives.
           Sincerely,

                                          Sandra Hanlon Bloom.

     

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