Remind Others of Falling Gas Prices

Concerns about transportation expenses on even short trips shift the preferences of your target consumers toward shopping online rather than at your bricks-and-mortar store. Therefore, please notice that gasoline prices have, on average, dropped noticeably for this holiday season. A Business Insider post, using data from Gasbuddy.com, notes the prices have dropped 7% in a recent four-week period.
     Now Gasbuddy.com, Business Insider, you and I have noted it. However, even if your target audience of consumers might have, they might not make the connection to the renewed attractiveness of shopping with you.
     It has to do with what economists coined the “Rockets & Feathers” phenomenon. Historically, gasoline prices rise as fast and directly as a rocket, but any price drops we see at the pump come down as slowly and unevenly as feathers.
     Researchers at University of Chicago found R&F occurred in about two out of every three supplier-to-retailer and retailer-to-consumer product transactions. It also occurred with services such as banking: Deposit rates responded more quickly to an increase than to a decrease in money market rates.
     In recent times, there have been fewer feathers in the retailer-to-consumer arena. Still, the history of R&F and consumers’ current high sensitivity to store merchandise prices mean your potential customers could benefit by being reminded that lower gas prices make it less expensive to get to your store.
     Also remind your suppliers, if they’ve not already lowered transportation charges, of the violations now of R&F. Expect the costs to you to decrease. Then lower your prices. When supplier-to-retailer costs go down somewhere in the marketplace, smart retailers are dropping their prices to shoppers more quickly than they’ve done in the past. This means that unless you find those lower supplier costs for what you sell, you’ll be losing business to your competitors.
     Tell shoppers lower supplier costs are the reason for your price decreases. The general rule is to always explain noticeable price decreases to customers. You got a good deal on a large purchase. You want to motivate people to try out a new brand. You want to help out customers when their money is tight.
     Be sure what you're saying is true. But at some point, you'll be increasing prices again. Gas prices will climb. You want to maintain in your customers the impression that the downs as well as the ups in your pricing are for good reason.

Click below for more: 
Gas What Your Shoppers Are Worried About!
Search for Better Supplier Costs
Explain Price Ups & Downs to Customers