RESULTS: How will low fuel prices impact your sales and profits?

The Question:

Lower crude oil prices are expected to keep fuel prices low all year. How much will this impact your sales and profits?

19% - It will help to both increase sales and lower expenses.
38% - It won’t impact our sales much, but a reduced fuel budget will improve profits.
11% - We should see improved sales but don’t use a lot of fuel.
32% - It’s unlikely we’ll benefit from lower fuel prices in any way.
Jim’s Comments:
Now that crude oil has escaped the clutches of speculators and dropped well below $100 per barrel, a number of interesting things are happening.  Working-class folks have gotten what is essentially a huge tax cut, and global economies should benefit. But it is also creating interesting dynamics regarding currency exchanges and geopolitics.

We wanted to know what this drop in such a widely used commodity would mean out here on Main Street, so last week we asked our small business audience about it. I was surprised to see less than one-fifth allowed that the lower prices would benefit them in both sales and expenses. This response is likely a result of the new, more virtual economy, which I think was also why one-third said they wouldn’t be impacted at all by lower oil prices.

As you may have seen in my 2015 predictions, I believe you can count on oil prices averaging less than $70 per barrel for the rest of the year.

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