Perspectives: How’s Business? Gas Prices Aren’t Helping

Perspectives: How’s Business? Gas Prices Aren’t Helping

With the topic of high gasoline prices on everyone’s mind, shop owners have a unique opportunity to help maintain their customers’ vehicles for peak performance and the resulting improved gas mileage.

Higher gas prices and the weather set the tone for business in April.

How was business at your shop?

Once again, I’ve reached out to Nick Mitchell, senior vice president of research at Northcoast Research, an independent, full-service institutional ­equity research and trading firm headquartered in Cleveland, OH, for insights from its monthly research study.

According to Northcoast Research, the shops in its survey sample experienced a slowdown in business for April.

One of the main factors that can influence the interpretation of data is the business ­condition from the previous year. Fortunately or unfortunately, depending on how you want to look at it, April 2010 was a nice month.

Gas prices in April 2010 were much lower than they are now and the month also got started with some nice spring weather. These two factors accounted for some good numbers and, thus, a tough comparison for April 2011.

This April, the weather had a negative impact on conditions with half the markets being tracked reporting an increase in precipitation and many markets reporting cooler temperatures. Cool weather and rain keep customers at home.

According to Mitchell, “many of the repair shops that saw their sales falter in April also attributed the sales decline to effect of rising gasoline costs. These respondents also pointed to decreases in their average ticket as supporting evidence.”

Another data point tracked by Northcoast Research is the deferral rate of maintenance. This number had been trending lower (good news for you) for the last several months until April. Again, rising fuel prices, which also impact the price of food, are cutting into the household budget.

Northcoast Research measures optimism in the market with its Three-Month Outlook Index, which dropped 18.7% in April after a 9.5% rebound in March. According to Mitchell, “a slow start to May along with the pace at which fuel costs have risen, has brought on a reduced optimism among mechanics.”

Northcoast Research remains positive based on the underlying fundamentals within the automotive aftermarket industry, including the aging of the nation’s light vehicle fleet, and the ability for consumers to fund vehicle repairs if gas prices do not trump the gains that are being experienced on the employment front.

With the topic of high gasoline prices on everyone’s mind, shop owners have a unique opportunity to help maintain their customers’ vehicles for peak performance and the resulting improved gas mileage. It’s important to take the time to educate your customers that ­simple changes to their car care regimen can boost fuel economy and lengthen the intervals between each fill-up at the pump.

And, getting the best mileage in the short run will be helpful to the family budget in the long run. 

You May Also Like

Philips Announces GoPure GP5212 Automotive Air Purifier

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

Lumileds offers the Philips GoPure GP5212 Automotive Air Purifier for drivers and families who suffer from seasonal allergies. Powerful, compact, and simple to use, GoPure GP5212 effectively filters out airborne allergens including pollen and mold that can pass through the cabin filters typically found in passenger vehicles, the company said.

Toyota Regenerative Braking System

The brake system of a hybrid may have multiple components to perform regenerative braking and pedal simulation.

Regenerative Braking Service

Regenerative braking takes the forward motion of the vehicle and turns it into electrical energy.

Toyota Prius Battery Codes P0A7F, P2011 and P0A80

A second generation Toyota Prius is at least 12 years old and batteries may need to be replaced. Here’s what the codes mean.

Air Ride Diagnostics: Reservoirs and Compressors

The secret to diagnosing air ride problems is knowing what criteria the system uses to regulate the compressor/reservoir and having the right tool.

Other Posts

AACF Launches 65th Anniversary Fundraising Initiative

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

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.

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.

BendPak Founder Don Henthorn Passes Away

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