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Personally, I am fearful of low gas prices (even more than high ones) because usually that means that something else is in the works. I don't buy that consumption can be that much lower in the Winter (not to be more than half the price, indeed less than its been in years).
I have a theory and it fits in with another thought I'd been playing around with for a while now: Perceived Value VS. Actual Value.
"Perceived" is the value that gets put on something based on a number of factors including VOGUE (whether its popular to be seen with whatever the thing is), NEED (but most things you don't actually need as much as the companies would like to make you believe you do), AGE (unless its "vintage" generally things that are very old are less efficient and harder to use... think about computers), UNIQUENESS (limited time only, rare, sentimental, special in some way).
"Actual" value is based upon what people are actually WILLING and ABLE to pay for it. For example, who thinks its a coincidence that GAS prices dropped during the worst financial time for our country since the depression? Those prices that we were paying in Summer, the ones that just couldn't be lowered anymore, dropped quickly when people said "no more".
We are brought up to believe that most things are sold at fair prices. We think we're getting the companies bottom line, the minimum they can sell it for to make a profit, when what were really getting is the maximum they think we are WILLING to pay. Some companies know how much their customers will put out. Some companies spend billions of dollars to change the customers decisions to better favor their products. To say it plainly, we have all been paying whatever the companies wanted to charge... and the high prices were set by ourselves.
This has been happening so long and they've been able to do it so well and discreetly that we forget that we're supposed to be able to keep some of the money we make. And on the other end of spectrum companies like WalMart and K-Mart thrive on this over spending because after your near broke they're the only choices that are left. They make their money in the small markets, by controlling all of the small generic markets. When we go to these stores we are fooling ourselves into thinking that were saving money... we are doing nothing by creating monopolies that eventually (if trends continue) will be able to set whatever prices they want from anything from BLU-RAY players to TOOTHPASTE.
Perhaps, people could stop buying the way they do now. Perhaps we could start seeing the bottom line everywhere and not just at Wal-Mart. Is a T-Shirt worth $22.00... even if it is from American Apparel or Abercrombie and Fitch? No. Is Gas worth more at Chevron then at AM/PM? No. We as customers should use this Economic Depression as a way to rapidly change the way things are and start investing our money into things that are at FAIR PRICES (and though its tempting... not just at Wal-mart and not just at top chain stores). Spread the wealth, buy used, fix things up, sell used, support local businesses, buy from the internet (smaller businesses if possible). Let's put a stop to inflation... and let's tell everybody that we know what things are worth because we're the ones who are paying.
Successful companies lately have been the ones who have dropped their prices to ACTUAL VALUES... like Subway ($5 for a foot long is fair)... like the buffets who offer take-out for cheaper (because we don't really need buffets if we can just eat enough to satisfy our needs), like the stores who lowered their prices to what their customers have to spend. *Walmarts success with this has made them 1, unfortunately they sometimes lower their price below actual value and cut back on benefits for their workers... this is too far.*
Industry can't keep supporting us all... we need to be self sufficient more of the time... this recession is a blessing to us as buyers... as long as we can keep our heads and start to look for alternate means of making money.
Anyway... let me know your thoughts via a COMMENT ON THIS BLOG.
Thanks and I hope that wealth lives in your heart before your wallet this Christmas,
Curtis
9:00 AM
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