Nice to see things are going well for you Jag. I didn't start the thread to complain btw, because I am fortunate actually, I am just curious about the effects the economy is having on people here.
Don't get me wrong, ...it's not like I haven't been affected by the economy, ...cause I sure have been.
It's just that I have tremendous flexibility in my life... more so than many.
A long time ago I went to hear Jim Rohn speak, ...and he asked a simple question that pretty much changed my life from that point on. He drew an analogy using the America's Cup yacht race, and described a scenario whereby each yacht had identical fibreglass hulls that weighed in the same, identically skilled navigators and crews that weighed in the same, they had the same sun beating down on them, the same wind blowing on them, and the same ocean upon which to sail. He then asked us to determine the deciding factor that allowed one ship to pull out ahead of the others in order to win the race? The answer was so simple and so profound I almost fell out of my chair. It was
"The way they set the sail"Ever since I have endeavored to set my sails according to the prevailing winds.
Since the price of fuel has dropped somewhat, many people are thinking they no longer need to use my products.
They've been psychologically conditioned to believe they are enjoying low fuel prices, ...even though they were up in arms the last time they saw fuel at this price. As a result, alot of my 4 wheel customers haven't been as actively re-purchasing my catalyst as they previously were. The truckers are just as loyal and as consistent as ever. Infact, it's actually picking up because alot of these guys are viewing this temporary break from higher prices as the respite they need to be able to invest in the product, and preparing themselves for when it goes back up again, so alot of these customers have been able to transition from being retail customers to distributors, and we're seeing a snowball effect taking place there. So despite the dip in one segment, it has been more than compensated in another one of our markets.
Fortunately, my company had the vision and the foresight to understand that the fuel prices weren't going to stay at a peak level indefinitely, so they prepared a transition well in advance of the dip. So while catalyst sales among your average 4 wheeler aren't as brisk as they once were, we've also expanded and diversified our product line which has facilitated a steady stream of sales revenues, and in many cases has infact increased monthly retail volumes from our consumers. I'm not going to complain that what once was a $50 a month catalyst purchase has turned into $20 or less per month in catalyst purchases along with an additonal $100 a month in various personal care and home care purchases from the same consumer.
I can also tell you the transition was a bit awkward considering the fact that we were looking to attract an entirely new demographic, but fortunately, when you have consistent revenues coming in, you can take the necessary steps to acquire an additional segment. The fact that the income comes in as a result of international markets is also a plus. Some economies have been hit harder than others. If I were limited to an income stream coming only out of Detroit, I'd be crying my eyes out. As it is, my biggest complaint is that sales in Mexico, South America, and China are sooo brisk, that simply supplying their demand is beginning to put a strain on our ability to properly service North America. Not a bad complaint to have... it could be worse.
Now, with 14 states raising their EPA standards to harmonize with California's, and looming legislation & litigation both domestically and abroad, ...coupled with future market conditions... 2010 is looking like it's gonna be a banner year.
