BlogSource1: Making a BIG deal out of small business

MyWebSource1 specializes in helping small- and mid-sized businesses develop strategies to increase revenues, decrease expenses, and improve customer relations. We can show you the tools to overcome the challenges business owners face when establishing an online presence.

Sunday, June 08, 2008

High Gasoline Prices Turn Consumers To Online Shopping

by James Fowler
www.mywebsource1.com

Do you sell a product or service? Are you looking for a way to make money with a hobby or business idea? Maybe you should look to selling your business online. Even if you aren’t looking to have an ecommerce site, people are going online to find your business. If you do not have a web site, this is something you may want to consider.

The high price of gasoline does have one positive effect for consumers: As gasoline prices rise, people forgo driving their SUVs out to their local malls and start up their PCs to shop online.

As prices of gasoline threaten to peak over $4.00 a gallon across much of the United States, online sales are beginning to rise. According to Drapers.com, a website dedicated to the international fashion market, online clothing and shoe sales rose 38% in the past year. In fact, internet sales now are responsible for almost 2% of all sales made in the United States. This may not sound like a lot, but that number is over $50 billion dollars in US sales – almost double from the $24 billion dollars spent online in 2004.

This number continues to grow at a steady pace. Free shipping, discounts and ease of ordering over the Internet are also attributed to attracting customers. The war with Iraq and fear of terrorism are other reasons some Americans state as to why they are now shopping online.

In a recent survey from Shopzilla.com, 40% of internet shoppers say they have increased their web purchases to save on gasoline. With gasoline rising on a daily basis and people moving away from driving to the store and looking for products online, maybe it is time to build your web site.

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Saturday, May 19, 2007

Needs, Wants, and Desires



by James Fowler
http://www.mywebsource1.com/

Traditionally, the three basic needs are food, clothing and shelter. They are the necessities to survive and have made man the predominate species on the planet. In our modern age, however, the “Need” has grown to more than just the “big three”. Today, we “Need” money to pay for certain things that are required, by law. For instance, you need to have electricity in your house. Thus, you “need” some sort of income or assistance to pay for that electricity.

“Wants” and “Desires” are similar, but different. A “Want” is something that is obtainable, but must have a “Need” to fulfill it. For instance, you “want” to go on vacation, so you “Need” to make the money to do so.

Finally, a “Desire” is something that is long-term and may be unattainable. It cannot be aided with use of a “Need”. You may desire to be an Olympic high-jumper, but you must face the reality that you are 40 years old and overweight.

In business, it is important to fulfill either a “Need” or a “Want”. Typically, “Needs” are easier to sell, but “Wants” will bring in the big bucks. But what happens on the very rare occasion that a “Need” moves over to being a “Want”?

This is happening today. Gasoline prices have now gotten so high that they have gone from the “Need” of fuel for transportation to a “Want” of being able to go somewhere.

With gasoline prices threatening to be above $4.00 and more a gallon this summer, the gas companies have over-priced a “Need” within this company and have moved it to be a “Want”. No longer can the average person making a minimum wage salary afford to fill their automobile with gasoline. This is a serious problem that needs to be addressed by our government.

While this is a burden on all of us, to some, it is a crisis. For example, let us say that the analysts are correct and gasoline goes to $4.00 a gallon. To fill a 15 gallon tank of gas will require you to put $60 worth of fuel into your gas tank. Most people need to do this once a week. So this means that approximately $240 a month is spent on fuel. Now, let us take a look at the person making minimum wage. If they work the full time of 40 hours/week at $5.15 per hour, they should bring home approximately $140.00 per week after taxes. Sixty dollars of that is going to fill up their vehicle (assuming they only have a 15 gallon tank) leaving them with $80 a week to spend on other “Needs”. Let us say they rent an apartment at a rate of $320 per month. Most of you will say that this is a very low price for rent. Well, that just ate up the remaining $80 they had to spend from their paycheck. This leaves them no money for food or clothing – the other basic “Needs”.

A person who makes $10,712 per year working minimum wage – and this is before taxes – is NOT considered at a poverty level – yet somehow they are expected to live off of this amount. Likewise, if it were a family of four, with two working individuals at 40 hours per week at minimum wage – they are just above the poverty line.

In a time when gasoline is so important to how we move around, the gasoline companies have overpriced their product. They have moved it from a “Need” to a “Want”. They say that it is because of our nation’s reliance on gasoline, problems with the refineries, injuries at the refineries, or someone had a hangnail…whatever the excuse, they are making billion dollar profits.

So, you will hear of “Gas Boycott Days” on the internet – which don’t mean a thing. The only true way of solving this problem is to find alternative fuel sources, buy vehicles that conserve gas (and these aren’t American cars unfortunately) and start carpooling the way they did it in the 1970s. The gas companies won’t feel a crunch until we stop using their resources in the abundance we do today. If everyone stopped driving in a car without a passenger, gas consumption would drop. Will it make a difference? I am not sure that it would be that significant. I am sure there would be a fire or someone with a stubbed toe to increase the price.

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