Often, the month of February is perceived as boring. The big holidays are behind us, and the grey of winter is tightening its grip. However, there is much to celebrate right now! Giant trends are in our favor, and industry events are ramping up to get me out of Chicago’s winter.
Gas prices are allowing us to celebrate more consumer money. Price reductions at the pump are operating like a major tax decrease for all, but especially giving those who make less much more discretionary income. AAA estimates the average household will get up to $750 extra a year in their pockets. According to Goldman Sachs, that’s $125 billion overall. By the way, we are almost back to the $1.84 per gallon pricing last seen at our president’s 2009 inauguration. Goldman suggests a longer reduction will result in increased driving and more vehicles per household, both which are good for us.
It’s not all sunshine though. Those states that have been rocking due to oil production will take a hit. Sorry North Dakota! After a while, this consumer euphoria will ebb as people readjust to the lower gas prices.
Charles Rotblut of the Wall Street Journal explains, “A common behavioral error is anchoring. Once we’re exposed to a certain level of prices, we adjust our view of what is normal. When prices move from that level, we see them as expensive or cheap relative to our last perception of what normal is. This occurs even if what we view as being normal would have been cheap or expensive in the not-too-distant past.”
Prices updated as of 1/20/2015 3:45am. AAA daily gauge
Trade Shows Celebrate Your Industry
Now that our customers have more money, how do you get your fair share? March brings out the two biggest industry events of the year. the Automotive Oil Change Association’s (AOCA) iFLEX show and the Jiffy Lube Convention. What a great way to learn new info, techniques and trends. Visiting with those like yourself is beneficial for too many reasons to list. Save money when vendors sharpen their pencils and make money when they introduce new concepts, services and products. I’ve got a few new things to discuss. Come see me.
At AOCA, in Orlando March 8-11, you can also join my wife, Catherine and I as we host our 14th Annual Charity Bash Sunday night. It will feature a Texas Hold ‘Em tournament and a 100-plus item auction. All money goes directly to United Service Organizations (USO) and Special Olympics.
Let’s celebrate getting older and bigger. Not us, but the number and age of vehicles on the road. There are 254 million, and their average age is 11.4 years. Nice numbers for our business. Add them to the gas price bonanza trends, and there is definitely room for growth.
DAVID PRANGE is currently assistant to the chairman at Next Generation Mfg. He can be reached at 630.699.6813 or: [email protected]