About two-thirds, or 63 percent, of consumers are cutting spending due to rising gas prices, up 18 percentage points from a year ago, according to a new report by market research company Nielsen Co.

According to the study of nearly 50,000 consumers conducted during the first week of June, 78 percent of them are combining shopping trips and nearly one-third (32 percent) are clipping more coupons — that's up from 25 percent in December 2007.

"Consumers are altering their driving and spending habits at dramatic levels," says Todd Hale, the company's senior vice president of Consumer & Shopper Insights, adding that "even affluent consumers are looking for ways to make their dollars go further."

And they'll be on the bargain hunt for a while, according to a study released in February by Yankelovich, Inc., on purchasing behavior. The study found that 58 percent of consumers report cuts ranging from a little to a lot, and a much larger percentage are planning further reductions over the coming year. The Dollars & Consumer Sense report revealed that 14 percent of American consumers felt "severe anxiety" about their personal economic and financial situations.

"We are getting squeezed on both ends," florist Gary Barnett told the Kansas City Star in an article about how small businesses are adapting. Barnett, who co-owns The Flower Man in Olathe, Kan., said he's recently changed delivery vehicles to control fuel costs and expanded store hours.

Not all florists are feeling the pressure of bargain-basement shoppers. In an e-mail survey of 318 SAF members, about 37 percent said the average price per order had gone up compared to this same time last year; 36 percent said prices are about the same, while 21 percent reported price points were "down a bit."  

Help cost-conscious customers by promoting your in-store specials, offering coupons and frequent-buyer programs. Put your design ingenuity to use for corporate customers by showing them how you can help them stretch that event budget. Let brides know which varieties lend themselves to lower price points, like carnations, without sacrificing the "wow" effect. (Get some carnation inspiration in Floral Management's August issue, in your mailboxes soon.)

And don't forget to take advantage of inexpensive promotional tools like blogs, e-mail newsletters and marketing materials from SAF.

--Amanda Long
along@safnow.org

 

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