It’s a sight that few would have predicted even five years ago: gas prices under $2.00 per gallon. That’s the case in many areas of the country, and even at those areas where fuel remains above the $2.00 mark, the average price per gallon of gasoline is down significantly from all-time highs in 2014. It seems safe to reason that Americans are saving lots of money at the gas pump these days, but just how much? And what are they doing with it?
The answers come in the form of a report from the JP Morgan Chase & Co. Institute in New York that analyzed data from 57 million debit and credit card holders in the U.S.
According to the study, American’s will save an average of $700 this year on gasoline—a sum that would make a nice bonus check. Notably, the study also says that residents in the South and Midwest, two of the country’s most active locations for fishing license purchases, are saving the most.
But what are those people doing with the extra funds?
They are spending.
JP Morgan says roughly 80 percent of Americans are spending (not saving) the money they have begun to save on gas. That could be good news for your store. Gas prices are expected to remain “low” through 2016, but if you want to get in on the action, you need to act quickly.
Tackle shops, like any business, aren’t the only ones after the newfound boost to the everyman’s income. Just this week, the federal government announced that for the first time in 40 years, social security recipients will not be receiving a raise in their benefits next year. The cause? Officials say it’s lower gas prices.
So how do you get in on the action?
You could, of course, get a jump on social security by cranking up a holiday marketing campaign for 2015. You could also target customers that are too young to receive social security benefits—JP Morgan says men ages 30-39 are spending the most on gas, and are correspondingly saving the most. To reach those customers directly, try a demographic-specific Facebook marketing campaign or old standbys like ads on local radio stations (young males are particularly in tune to sports talk radio). If you’re feeling creative or you’re on a tight budget, try a guerilla marketing campaign.
There’s no time like now to start marketing. After all, you’ve got a little gas money in your pocket too now, huh?