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Monday, April 9, 2012

Consumers accelerate car sales in response to higher gas prices

Observation:   Once upon a time, the high price of gas contributed to a slowdown in vehicle sales.  This time around, it seems, higher gasoline prices are prompting consumers to trade in their older vehicles for something newer and more fuel-efficient.  That’s according to a story in this morning’s USA Today.  Click here to see it.

Implications:   We’ve been anticipating the effects of higher gas prices for a long time, now.  A more expensive commute could cause some consumer to spend less in some discretionary categories (like entertainment, out-of-home dining, etc.), but more in others (automobile sales and service, energy-saving home improvements, etc.) 

How are higher fuel prices impacting consumers when it comes to your product or service?   How will you message to the consumer so that a purchase with you is one of the last things they delay or defer?  Is there a way you can position your offering as a higher priority, when compared to other discretionary purchases?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

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