Prices Are Up But Consumer Spending Isn’t
My gas station and my grocery store are in cahoots. They both keep inching up prices, waiting to see which one will bankrupt me first. Well, forget it, boys. Like many other American’s I’m finding new ways to get what I need without spending more than I was before.
Gallup’s newest poll shows that even though the cost of living has increased, consumer spending is down from February and was virtually flat over March and April.
Gallup says that last year, spending was on the rise and there was talk of “frugality fatigue.” This year, it’s a whole different story. Of course, we’ve seen it in the popularity of deal sites. In the beginning, these sites were loaded with luxury buys from spa days and high-end restaurants to helicopter rides over the city. Now you can buy sampler packages from food manufacturers and other basics. Deal sites aren’t simply trendy anymore.
So how do we make something positive out of this news? It’s all about understanding your customer. What can you do to make your product a better value. Free shipping? A bonus item for every $50 purchase? A coupon? Or maybe you simply have to do a better job convincing the public that they need what you’re selling. If you have a product or service that will help them live better for less money, you’re golden.
Now I’m off to the grocery store with my stack of coupons and rebate voucher. Last week, I bought $180.00 worth of groceries for $98.00. Let’s see if this week, I can do better.