July 24, 2008

The Price Is Irrelevant

There has been much ado about gas prices these days. We all have our personal stories but mine is that the car I drive now costs 50% more to fill than when I bought it. That’s a real number. But do I drive any less? No. Sure, probably like you I don’t go on as many pleasure drives for no apparent reason but I don’t cancel a meeting because it now costs me $60 to fill the tank when is used to cost $40. I’m sure you’re the same.

I was on a flight recently and you could barely get everyone on to the plane. The cost of an airline ticket has increased sharply because …of the price of gas. No one seemed to have canceled their plans on that trip. Of course, the teleconferencing and PDA industries are certainly seeing more money come their way. You've probably done it too - you fly out in the morning, fly home at night all for a two-hour meeting. That's just not an efficient use of resources and time.

Psychologists, Human Resources officers, and Pediatricians will tell you that if an action is not reprimanded then it is endorsed. If you tell your child not to eat candy before dinner but when they do you do nothing – then you are telling them that it’s accepted behavior. If you drive a car and complain about gas prices but still drive your car as much, you accept the behavior of those who set the fee.

Yes, I know we need our cars blah blah blah. I use mine too. There is no soap box here. I know a lot of people in the auto industry who are feeling the crunch. Our driving may not be diminishing but new car sales are on sharp decline. As much as we bitch and moan about what we put in our vehicles, we justify the costs somewhere in our heads by hanging on to the old car for a couple more years.

The Ford Motor Company this week announced an $8.67B loss this quarter.

It's good to know that the oil rich nations are not favored through the war effort and that the oil companies are no longer holding court at the next Washington shindig. Fill the tank and complain to everyone. We’re listening.

km

 
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