We always hear that energy prices affect the whole economy due to the fact that they are a built-in cost to most businesses. These effects are more obvious in some businesses than others. For instance, the airline industry has always been known to rise and fall with energy prices and so it should. Airlines consume the most fuel out of every organization excluding the government. No wonder, airlines keep raising fares and cutting service to stay afloat.
But then started considering its effects on our industry. Everyone knows that agents drive a lot and fuel is certainly one item in our income and expense statements. While it is not as vital an item to us as to airlines, I wonder if there will ever be a tipping point beyond which agents will start changing their habits, or even worse their entire strategies depending on energy prices.
As I'm sure many of you do as well, I drive a lot. I mean A LOT. Last year my average mileage was 5000 miles/month. So far it has not bothered me a bit. I consider gas consumption as something that comes with the territory. In other words, if you don't like the outdoors, don't go hiking, right? But this is deeper than that. What if, gas went to $5.00/gallon? Would that make you change your overall strategy and force you to become an agent specializing only in a limited area to curb the amount that you drive?
I am very curious to know.
Content property of Houston Real Estate
Comments(6)