Perspectives: How Global Issues Can Dictate Your Bottom Line

Perspectives: How Global Issues Can Dictate Your Bottom Line

How Global Issues Can Dictate Your Bottom Line

One of the vital tasks that shops must undertake is managing the expectations of their customers. This is really a job for anyone who sells a product. When I complain about the price of a pair of jeans that my wife buys for herself, she always says, “They don’t cost the same amount as they did 20 years ago.” My brain thinks you shouldn’t have to pay more than $20 for a shirt or pair of pants. Her brain must be double the size of mine, because so are her price expectations. It must be that some marketers and sales associates have done a good job of “educating” her through the years. Today when consumers read the newspaper or watch the news, the price of oil and gasoline is always mentioned. We all know that we are paying more at the pump, but I don’t know if we all know why. We have also read about the rising price of steel for the last couple of years. Gradually, we are paying more for items because of this rise in steel costs. The factors behind both of these price escalations have to do with the global economy. Now add A/C refrigerant R-134a to the mix of commodities that is affected by supply and demand. Demand for R-134a is increasing. Why?

  • There are 113 countries in the process of phasing out the use of CFC-12 and are using R-134a as the replacement. Some of these are countries with growing vehicle populations like China, Brazil and Mexico.

  • More new cars in Europe and China are equipped with air conditioning systems.
    Supply of R-134a is not keeping pace with demand. Why?

  • Production difficulties are causing low inventory levels.

  • Producers are switching output to other refrigerants that are in higher demand.

  • Producers are hesitant to invest in more capacity because Europe will phase out R-134a starting in 2011.

These explanations may not make a lot of sense in your market, but the fact of the matter is, what happens across the oceans impacts your business and impacts what your customers pay for service. It is always a good idea to manage your customers’ expectations by keeping them informed of what is going. An intelligent explanation of the circumstances will give you a better chance to get the sale and keep a customer.

To download a summary of the variables affecting refrigerant prices, click here.

You May Also Like

Snap-on Announces Latest Software Release

The latest software includes new coverage, guided component tests and features.

Snap-on announced its spring software release which it says "drives unparalleled confidence from the moment a Snap-on scan tool is turned on with its general and collision repair coverage and industry exclusive features for domestic, Asian and European vehicles."

Not only does the latest software include new coverage, guided component tests and features, but it also contains everything from previous releases for smarter fixes that lead to complete repairs and satisfied customers, according to Snap-om.

Continental Tire Opens Retread Solutions Center in South Carolina

The company said it hopes to uncover new improvements and technologies to innovate the retread process.

Philips Announces GoPure GP5212 Automotive Air Purifier

It uses a 3-layer filter to deliver cleaner, healthier, fresher air on the go, Lumileds said.

AACF Launches 65th Anniversary Fundraising Initiative

The campaign aims to raise $65,000 through 1,000 donations of $65 each.

Standard Motor Products Announces 123 New Numbers

The release provides new coverage in 53 distinct product categories and 47 part numbers for 2023 and 2024 model-year vehicles.

Other Posts

Success Means Investing In More Than Equipment

Todd Baldridge measures success by how well his team benefits from being together.

Were things better when they were simpler? Probably not.  

Getting nostalgic about the good old days is easy, but many forget the struggles of the time.

BendPak Founder Don Henthorn Passes Away

Grew company from small machine shop to global leader in car lifts and garage equipment.

ASE Practice Tests Available Online

You can get a good idea of what to expect by adding the official ASE practice tests to their study plans.