Good News! Gas Prices Climb Over $4 a Gallon
It’s getting harder to watch the news every day. The recent cyclone in Myanmar and earthquake in China have devastated entire communities and left millions homeless. We’re still at war in Iraq, facing a nuclear threat with Iran and watching mounting tensions throughout the Middle East. The dollar is weak and the Federal Reserve Bank hinted at rising inflation. Truck factories are closing and airline losses are in the billions.
The good news, though, is that gas prices are over $4 a gallon.
Good news? Elly, surely you’ve lost your mind. Who could find anything good in record-high gas prices?
Here’s how high gasoline prices are good for retailers. When consumers spend $50 to $60 for a fill-up, that fuel is a precious commodity not to be wasted. There’s no cruising, going out for a ride on Sunday afternoon and no needless shopping trips.
High gas prices mean that every customer coming through your door is a buyer. There’s no more “just looking” or “we might be buying a home theater in a few months.” There are no more tire kickers or “lookey Lous.” When your door swings, it’s opportunity knocking. The only question is whether that customer will buy from you or from your competition. The store that is best prepared will win the battle for that customer.
Spiff up your showroom. If you want to differentiate yourself from your bigger competitors, make your showroom looks more home-like and less store-like. Touch up the paint and clean the carpets. Since electronics seem to be dust magnets, be relentless about keeping gear clean.
Make sure all of your displays are connected and fully operational. Check remotes for batteries and ensure that lighting systems work perfectly.
Today’s consumer is value-driven. Don’t believe that your business is bullet-proof because you only cater to the rich and famous. An article in the June 1 New York Times titled “It’s Not Easy Being Less Rich” spoke to the financial anxieties high net-worth families are facing as their fortunes fall from $20 million to $8 million and their year-end bonuses vanish.