12V Watching Gas Prices

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Gas prices are rising, but there’s little impact presently on car stereo spending say retailers.

gas prices riseSome buyers are starting to consider strategies to promote store traffic if gas prices continue to surge, but for now, the industry appears to be waiting and watching.

Gas prices have risen 24 cents per gallon in the past eight days, said CNN Money Wednesday. Prices are already above $4/gallon, in parts of California. Al & Ed’s Autosound, Van Nuys, CA said there’s talk of gas hitting $5/gallon this summer on the West Coast, but the chain has seen no noticeable impact yet.

Last week a Moody’s economist said gas prices could spike by 37 cents/gallon in coming weeks.

During the last gas crisis in 2008, car audio sales fell off dramatically.

“We’ll definitely take a little bit of a hit. Don’t know if it will be as bad as last time. At the end of the day, people can either put car audio in the car or gas in the tank and gas is going to win,” said Don Barros of 6th Avenue Electronics, based in Springfield, NJ.

When asked if he plans on promoting to keep feet coming in the door, he said, “We’re debating whether to do something, but we want to see where it’s going to end up.”

The handful of retailers we polled said sales were solid and tax rebate season is helping to keep the register ringing. 6th Avenue is up about 4 percent in car audio presently. Remote start season was up 35 percent this year for the chain.

Some promotions that might help bring people to the stores if gas continues to spike in price:

  • Invite consumers to bring in their last gas receipt for $20 or more and they’ll get $20 off the price of a car electronics item.
  • Offer a raffle on a $200 gas card; you can enter to win by stopping by the shop for a demo.

Source: CEoutlook, CNN Money

Photo via onlyincitruscounty.com

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4 Comments

  1. Can anyone tell me how the gas guys get away with this? And why can’t they be stopped? The high gas prices in 08 killed everything for everyone. Then the media (like Oprah) tells everyone to stop spending and stash your cash. Nice. If you’re not buying my products and services then I can’t buy yours. This works out well for who?

  2. With jobs being scarce for our main clients
    16yrs to 24yrs old and sound ordinaces with fines
    and gas going up it all works againt this industry.
    Yes promotion is good but bottom line is if we
    are giving money back to consumer for gas
    then keep our products low priced to get them in the door
    and at the end of the day how much money are we making to
    keep our doors open and pay employees.

  3. 12 Volt watching gas prices. Really? That’s the problem with our country these days. We have become a bunch of watchers, not doers. What has changed in the past few weeks? Has our oil supply been interrupted? No, just gouging the American public once again. Our country needs to use Facebook and twitter like they did in the Middle East and say enough is enough.

  4. It is much too soon to gauge the impact of rising gas prices. When tax refunds are gone, we will get a clearer picture. I fear that there will be a measurable impact. I also believe that some of that impact can be blunted with timely and imaginative promotions as those mentioned in the article. Being proactive is the key. Don’t wait for business to fall off. By then the mindset has turned against you. We intend to begin incentive advertising when gas hits $3.70 in our market. (It is $3.55 today)

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