JimPeters

Gas in the Indianapolis area reached $4 a gallon (most stations are hovering at $3.99 currently), and I’m already noticing myself doing things to save fuel. Combining trips, making an effort to take our most efficient car when we can, and asking “do we really need to go?” or “Sure it may be a couple dollars more at the local store, but we’ll spend that in gas driving to the city.” While we’ll feel a pinch in the budget, we pay by credit card at the pump and will continue to fill up our cars, however unhappy it makes us.

Lots of people, however, don’t have that luxury. When the cash runs out it’s out. Period. Regardless of what day of the month it is. So the first thing that goes is the discretionary spending.  Rather than going downtown for an evening and paying for parking and a nice dinner, folks stay at home. Concert tickets and the expenses associated (along with parking)? Discretionary spending. Last time gas prices hit $4 a gallon, my wife started car-pooling to work with 2 other ladies. For over a year, they shared a single spot in a parking garage. Currently, their schedules aren’t “jiving” to carpool (funny that happened when gas was $2.50 a gallon), but I hear her talking about getting the carpool back together.

What happens when gas hits $5 a gallon like some “experts” are predicting? Is your business ready for less traffic or fighting harder for the traffic that you can get? What if there’s a major shift to micro cars, scooters, bicycles or even public transportation in your area? What can you do to maintain a loyal and happy customer base? 

Sometimes the first reaction to less traffic is to lower your prices. Before you do this, ask yourself why? What are the competitors doing, are your prices in line with theirs? Parking is a commodity to the average person, so a better deal will get their attention if all other things are equal, but why keep all other things equal? If your lot or garage is better lit and monitored than the next guy’s, there’s value to that. Are your people friendlier and more professional than the next guy’s?   Rather than cutting your prices, how about rewarding people for referrals, or offer loyalty rewards of some sort? 

Yeah all those things may cost something. But what about a warm “We really appreciate your business, Mrs. Jones”? Simple things like that can make a commodity seem like a relationship. If gas hits $5 a gallon, things could definitely change. The more prepared you are, the more successful you’ll be.