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