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How do rising gas prices affect your business?

We have all heard the recent news of petroleum prices increasing and potential gas prices of $5 per gallon by 2013.  One question to answer is how this increase affects other prices.  When gasoline prices hit $4 per gallon in 2008, steel prices jumped 80% in four months.  The costs of mining, refining, processing and transporting the steel were all affected by increased petroleum prices.  Prices increased dramatically during this period even though demand decreased.  If the ‘experts’ are correct about petroleum prices then the prices for all steel items will increase.  Companies simply can’t absorb cost increases of such levels.

Visit your local new vehicle dealer.  All of the vehicles are priced 20% or higher than last year’s models.  The prices are offset with significant rebates, up to $10,000 for an F-150!  The automobile manufacturers and dealers expect their costs to increase in the next months.  Those vehicles still sitting on the lot when fuel prices rise will have the original price in the windows, but the rebates will be long gone.

Standard Tools knows that buying one of their spray booths, mixing rooms, frame machines, lifts or other similar products now, rather than later, is the best bet.  Buying before the prices are raised even higher ensures that you obtain your equipment and can start making profit by now.  Call our sales team at 800-451-2425 for more information!

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