This is a post from Dave Rampage on ICS:
Re: Oil
Posted By Dave Rampage on 10/19/2007 at 5:04 PM
Today my sales were $1,280.25 and I used 13.52 gallons@ 3.35/gallon. That was $45.42 which is 3.5%of sales.
If it was $6.00/gallon today, It would have cost me $81.12. That would be 6.3%of sales. At the higher price it would have cost me 35.70 more.
I could raise my price .01/sf to offset the price and nobody would care. If the cost of oil goes up so does the cost of new carpet because it is made from oil. If it costs more to replace more people are likely to clean instead of replace.
Don't worry.
Dave
Now don't get me wrong. I have a lot of respect for Dave and what he has accomplished. But he COMPLETELY misses the point. When gas prices are high it affects people in many areas. It is not how much MORE it cost us to clean a carpet. It is what our clients are spending on every day things that add up...and therefore cause them to NOT clean as often.
We have all heard that when the economy is slow instead of replacing people just clean more. NOT true. They don't replace and they CLEAN LESS.
So oil prices and the economy are a big concern to people. Not only that but the lousy housing market.
I am not a sky is falling person...but many of us will feel the crunch if gas prices continue to go up again. Our clients only have so much to spend, even the well to do clients.
DevilDog
Re: Oil
Posted By Dave Rampage on 10/19/2007 at 5:04 PM
Today my sales were $1,280.25 and I used 13.52 gallons@ 3.35/gallon. That was $45.42 which is 3.5%of sales.
If it was $6.00/gallon today, It would have cost me $81.12. That would be 6.3%of sales. At the higher price it would have cost me 35.70 more.
I could raise my price .01/sf to offset the price and nobody would care. If the cost of oil goes up so does the cost of new carpet because it is made from oil. If it costs more to replace more people are likely to clean instead of replace.
Don't worry.
Dave
Now don't get me wrong. I have a lot of respect for Dave and what he has accomplished. But he COMPLETELY misses the point. When gas prices are high it affects people in many areas. It is not how much MORE it cost us to clean a carpet. It is what our clients are spending on every day things that add up...and therefore cause them to NOT clean as often.
We have all heard that when the economy is slow instead of replacing people just clean more. NOT true. They don't replace and they CLEAN LESS.
So oil prices and the economy are a big concern to people. Not only that but the lousy housing market.
I am not a sky is falling person...but many of us will feel the crunch if gas prices continue to go up again. Our clients only have so much to spend, even the well to do clients.
DevilDog
