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Gas may fuel area retail sales
Published Saturday, May 31, 2008
Photo by The Daily Journal
Joel Myhre
No question, with gas prices up to near $4 per gallon, a fill-up is pinching our wallets, and certainly spurring commiserations with complete strangers at the convenience stores as the numbers on the gas pump do a Flash Gordon.
If all of us had the choice, gas prices would go back to $1 per gallon that I remember a decade ago. That said, as the price of gas has reached a point — and if not now, than certainly in the near future — where people actually start changing their driving habits.
I’m sure there are some out there who have already cut back on driving – putting off a family vacation or vacationing closer to home, for example. I know a group of local business owners who are hoping the driving habits of local residents can help drive a new twist on an old trend: shopping locally.
In this space, I have written many times about the benefits of shopping locally. And I’m sure that local residents all believe that shopping locally is the right thing to do. However, the lure of those fancy stores with the seemingly infinite variety of products at better prices (some real, some perceived).
Since I still enjoy math, I thought I’d do some cost analysis on a shopping trip to the cool nearby retail centers of choice. Based on a vehicle that gets an average of 20 miles per gallon (after all, how are you going to carry all that stuff in your tiny high-mileage car?), and $4-per-gallon gas, it costs you approximately $25 every time you take a trip to Fargo-Moorhead, $50 to travel to St. Cloud, and $75 to drive to the Twin Cities.
Let’s say you are going clothing shopping, and plan to buy about $200 worth; say a few shirts, a couple pairs of pants and a pair of shoes (and a whole lot more, I’m sure, if you’re thrifty.) A trip that could cost upwards of $200. To make up the cost, you’d have to find a savings of 15 to 40 percent off similar items in this area.
While retailers are known for sales, it’s a rarity when someone is able to score those kinds of savings just by shopping in the big city.
Those savings only account for gas prices as they are now. If the price jumps to, say, $5 or $6 per gallon, the cost justification for shopping in the larger cities will slip even further out the window.
Of course, savings isn’t the only reason people shop outside of Fergus Falls. Variety also is a factor. It’s more fun and appealing if you have, say, 20 different kinds of jeans to choose from, rather than a half dozen. That said, shopping then becomes a special event. And when shopping out of town becomes less routine and more of a special thing rather than a regular thing, then a clear trend will be forming that will favor the local retailers.
Let us also not forget about the fact that retail brings in retail. If local retailers — both locally and corporately owned — improve sales, corporate offices will take notice. Local stores would then expand, add new product lines and varieties, and new stores may even come to town to serve as competition. All of which would benefit the local consumer.
Sure, I’ll admit that I still wish I could get away with paying less than $50 every time I visit the convenience store.
But if the trend continues, it could also very well be that there may be winners closer to home than the corporate offices of Exxon.
Joel Myhre is The Journal’s general manager. E-mail him at joel.myhre@fergusfallsjournal.com
Comments
The Daily Journal is happy to host community conversations about news and life in Fergus Falls and the surrounding area. As hosts, we expect guests will show respect for each other. That means we don't threaten or defame each other, and we keep conversations free of personal attacks. Witty is great. Abusive is not. If you think a post violates these standards, don't escalate the situation. Instead, flag the comment to alert us. We'll take action if necessary. It's not hard. This should be a place where people want to read and contribute -- a place for spirited exchanges of opinion. So those who persist with racist, defamatory or abusive postings risk losing the privilege to post at all.Posted by fergus187 (anonymous) on June 1, 2008 at 5:44 p.m. (Suggest removal)
if this trend continues I don't know how I'm gonna have enough money to buy jeans at the salvation army let alone some retail outlet, I know people that couldn't buy new jeans at all before gas prices raged out of control, and now you suggest oil companies eating away all disposible income is good for local business?
empty pockets don't buy anything at all!
if anything it will cause an increase in shoplifting!
these out of control gas prices are financially bad for Fergus falls in every financial way!
there may be an environmental benefit,
all in all, I do agree with you that shopping locally is both important and helps our local economy, but I just don't see how the high gas prices are going make extra spending money for locals to spend.
I bet those poor daily journal delivery drivers love your opinions!
Posted by Elsi (anonymous) on June 2, 2008 at 10:25 a.m. (Suggest removal)
I have already curtailed my driving and spending. The gas prices, which in turn raise prices of food, clothing and utilities are way out of line! I now need to be certain that any item I want to buy is totally necessary, because when winter comes again in a couple of months, I need to pay for heating fuel. This past winter, I kept the thermostat at a cool 62 degrees in order to conserve fuel.
Something to think about - with fuel prices going up (and causing other items in turn to go up), more people will need to seek assistance - and we all know who pays for that assistance, don't we?
Posted by thethinker (anonymous) on June 2, 2008 at 2:50 p.m. (Suggest removal)
If the price of oil doesn't retreat significantly before winter returns (which seems like this week - nice weather), the entire globe will be in for some extremely hard times. I'm no economist but when I see people rioting over food in parts of the world, the UN having a huge meeting to discuss the food shortage, and the obvious fact that transportation costs have exploded, I can see a global depression on the horizon. Granted, I certainly was not around during the Great Depression. My grandparents were and they told me how tough it was to be alive back then. With the markets of the 190+ nations across the globe so extensively linked together, all it will take is for 1 or 2 big players (read: USA and China) to stumble and all the dominoes (countries) will topple. Not being apocalyptic here - I am just someone who pays very close attention to what is happening in the world and how the USA fits in that puzzle. Sure it stinks that we are paying $4/gallon...but did you see prices in other places? $9/gal to $12/gal in Europe?
Well ok, I'll step away from the podium now so someone else can talk. One last thing: support your LOCAL businesses. They are us.
Posted by princ55 (anonymous) on June 3, 2008 at 12:51 p.m. (Suggest removal)
I was born and raised in Fergus and now live on the edge of Fergus. I come to Fergus occasionally patronizing businesses that value me as customer.Incidently my gross income is well over 150,000. Past history has demonstrated to me if you are not from the certain family you are not a valued customer in Fergus. I would spend the extra money gas to travel to another town. We have had it good in this country with cheap gas. Fergus has to realize that we live in a different economy where people travel distances to buy products both national and international. Fergus doesn't have much in certain products. I don't see that changing become of past business people not wanting other new businesses coming to town.( people have to patronize the local businesses that are in Fergus, HA! HA! Bad idea !!)Change your attitude!!! Once people shop in other towns ,no matter what the price of gas is they will travel.Also ,the internet has made shopping easier. I buy online parts ,cars, tractors you name without spenting money on gas to come to Fergus or anywhere else. Shopping has changed over the last sixty years and I value merchants that value me as customer. My last purchase was in southern Minneasota for $3500 and I received a thank you card and they asked if they could keep in touch. I feel valued!! Fergus has to change its attitude!!!
Posted by 89Heritage (anonymous) on June 4, 2008 at 7:38 p.m. (Suggest removal)
I was born & raised in Minnesota. I've been in this area for 25 or more years. I love this area, But i am seriously contemplating becoming a Nodaker. I work 40 hours a week. Occasionally more. I make 14.75 An hour. Witch isn't that bad ? and I barely make it from check to check. Mostly do to gas,Heating,Insurance & cigarettes prices. I don't have much & I don't want much. A little left over for fun on the weekends. hunting,fishing & riding my bike. I use to do a lot of riding & spending on weekends. Not so much last year & a heck of alot less this year. All businesses are going to feel the pinch like never before. I'm not by far the only 1 in this situation & I seen it in Ottertail City last weekend. We are in big trouble. Princ55, I tried to enlighten F.F. on there attitude in another article & it got removed. It was nothing harsh either.
Posted by ffmomtoone (anonymous) on June 10, 2008 at 9:09 a.m. (Suggest removal)
I'm with prince55. I had an experience this last weekend with a local merchant. I went looking for a particular item that I knew I could find cheaper in Fargo. However, I decided to check a couple local stores first. The store had a similar item but not what I needed. I asked if she could get it. "I won't" was her response. I told her I was simply asking to save myself a trip to Fargo because my only other "Fergus" option was too high priced. I returned home, called Fargo, asked them if they would be kind enough to take an over-the-phone purchase and mail my items. "We're not supposed to, but we will" was their response. How's that for customer service? Look, I don't care who gets my money. I would have paid an additional $70 to buy from a Fergus individual. The local merchant didn't even want my money. I'm sure there are people with more money than me out there who would have gladly paid the additional $70 to shop locally. I can't.
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