Where have our customers gone? They’re not in ANY stores! The news these days is full of fear and we all know nothing rivets an audience better than some good old fashioned Chicken Little fear.
What news is brewing behind the scenes? Good news I say! First, we know that 94 out of 100 of your customers are still working and second, they ALL have been given a BIG raise in the last 30 days!
Since July 4th, gasoline has fallen almost 50%. In NY, it’s fallen from $4.30 a gallon to $2.60’s. Where ever you live “The Oil Bubble of 2008” has popped and all signs point to gasoline going even lower.
Ok, so how are things at your customer’s home? Let’s look at their gasoline bill, this month vs July (3 months ago).
Mr. and Mrs. Average Joe have a sedan and a SUV and drive 15,000 miles each.
A Chevy Impala
= 56 gallons per Month
WAS: $4.30 p/gal fill up = $240.80
NOW: $2.65 p/gal fill up = $148.40
Save = $92.40
A Ford Explorer
= 78 gallons per Month
WAS: $4.30 p/gal fill up = $335.40
NOW: $2.65 p/gal fill up = $206.70
Save = $128.70
Combined gas savings per month: $221.10
That is sweet news indeed!
Drop this Credit Crisis news and we’d be over run with consumers! Alas, the credit crisis news is grim and hides this windfall. But, as the weeks pass, the Fed intervention will make its way into the system. Fear will ebb and your customers will get that “all clear” signal to come out into the sun. In the mean time, they’ll have been enjoying a windfall of lower energy (and falling food prices). This windfall is enormous and has just dropped into our laps. Remember, it was just weeks ago when everyone (me included) had resigned ourselves to the new era of $4 gasoline.
When the time comes for your customers to dump the old car and buy new, they’ll be more conservative and far more open to the value of a used car then ever before. There has never been a better time for the future of selling used cars than here and now.
Joe P.
Related Articles
4 users responded in this post
NEW NUMBERS ARE IN (11/14/08):
Combined gas savings per month: $274.70
In the weeks ahead, look for Average Joe to crawl, walk, run out of the hole. He’ll make small purchases 1st. Look for him to crawl into restrauants more often.
Wall Street prices move in advance of Main Street. If you’d like a nationwide look to see if Average Joe is going to restaurants look to Sysco foods. Sysco is a restaurant distributor that is a very good barometer of the restaurant group as a whole. You can follow SYY here: http://finance.google.com/finance?client=ob&q=NYSE:SYY
We’re here at $23.00 for SYY today, an 8 year low. SYY over $26 would be a sure fire sign that Average Joe is gaining confidence!!
Just my $0.02
Joe
NEW NUMBERS ARE:
A Chevy Impala
= 56 gallons per Month
WAS: $4.30 p/gal fill up = $240.80
NOW: $2.25 p/gal fill up = $126.00
Save = $114.80
A Ford Explorer
= 78 gallons per Month
WAS: $4.30 p/gal fill up = $335.40
NOW: $2.25 p/gal fill up = $175.50
Save = $159.90
Joe,
I just printed this post to use in this mornings sales meeting. Thanks for the positive information in a world full of negative media.
Average Joe is Alive and Well!
NEW NUMBERS ARE IN:
A Chevy Impala
= 56 gallons per Month
120 days ago, WAS: $4.30 p/gal fill up = $240.80
NOW: $1.85 p/gal fill up = $103.00
Save = $137.20
A Ford Explorer
= 78 gallons per Month
WAS: $4.30 p/gal fill up = $335.40
NOW: $1.85 p/gal fill up = $114.30
Save = $191.10
AVERAGE JOE MONTHLY SAVINGS = $328.30
If you turn off the news and just walk around, things are looking pretty normal here.
IMO, Get out that Checkbook and hit the auctions and load up. Extend out your days in inventory. You’ll thank me after your 1stQ in 2009.
Amen brother, there’s never been a better time to be a buyer.
Dale