If you are a small business or entrepreneur you can bet your U.S. dollars lower than the high price of gas affecting you. It will probably be your "bottom dollar" too!
Regardless of what politicians tell us, regardless of whether you send your products to customers or not the price of fuel is affecting you. It is affecting their business, and that is affecting the consumer – your consumers.
In a recent survey by the National Retail Federation said, "Whether gas prices pose a fiscal or psychological concern consumers are affected regardless of income."
Some interesting statistics show that from the number of adults nationwide16.4% delayed a major purchase such as cars, television or furniture. Dining out has been reduced by 25.2%, 31.2% decreased the holiday travel plans, 17.3% are spending less on food, 23.7% and spending less on clothing.
Equivalent to the fact that restaurants, travel agencies, motel / hotels, car dealerships, furniture stores, clothing stores and retail will be affected by gas prices. If any of those listed is the business you’re doing, then your bottom line of profits is definitely affected. The interesting part about this is that no matter whether respondents were in the $ 50K + income of $ 50K or less, the results were the same.
The only difference seems to be that adults in the age bracket of 45-54 years of age had the highest percentage, but with the same result. For example, 25.2% of the adults reduced dining out, 28.6% of them were in that age group, and so on down the line. The survey also indicated that 70% of consumers in that age group were affected by rising gas prices.
As you might have guessed, when these survey figures were broken down by region the West was superior in all categories of the NE, Midwest, or Southern regions. However, only 5.7% of us have increased carpooling.
It is a fact, whether we like it or not, that every penny spent on gasoline is a penny kept from retailers. Looking beyond the retail industry, what about the service business. The cost of doing business for a repairman will increase the cost of gasoline increases, and ultimately their prices reflect that increase. No matter if he is doing electrical, roofing, renovation, plumbing, whatever the units of service to your home will cost more in the long term.
Ultimately, as the domino effect goes into play, those who can be least afford price increases will be most affected. Seniors and retirees on fixed incomes just have to suck it up and take price increases. As the survey pollsters have said income levels did not change the election results still vary the capacity to handle the domino effect. If income stationery, still higher prices, there is definitely an effect on people with fixed incomes.
For the entrepreneur to overcome the situation calls for something really extreme methods. Here are some tips to keep your costs down:
• Order supplies online, anticipating a price increase, and have them delivered to you.
• Research your competitors online and save gas.
• Group to do an errand or two when in the vicinity of a reunion scheduled client.
• Make more of your business by mail, email or online. You can do almost anything, from paying a provider to transfer funds from one account to another on the Internet, and you do not use any gas. The only time you have to go to the bank to make a deposit.
• If you conduct business fairs and have to find ways to cut corners on travel. Carpool to the airport with a colleague or even a close competitor. (You’re both going to do business in the same show anyway.) Maybe you can combine two trips with one back home after the second trip. Maybe put an ad in the Fair program can save you a trip. (You can use this plan for the less important trade show.)
• Consider whether media advertising for your business would be cheaper than what it has done in person, taking into account gas prices.
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