Richard Gottlieb

Looking for good news

I decided to go looking for good news and I believe I found it. The cost of oil is going down precipitously. This means that everything from the plastic that is ubiquitous in toys, to the fuel that powers container ships, to the diesel that propels tractor trailers is going down in cost. This will put a downward pressure on pricing and, as a result, we should see a slowing in the inflation that has been driving up toy prices.

That’s not the only good news supplied by lower oil prices. Every time a consumer pulls up to a gasoline pump they are spending far less than a month ago. This means more money in the pockets of consumers available to buy other things like…toys.

It’s not only gasoline. This was going to be a frightfully expensive winter for people who heat their homes (particularly for those in the Snow Belt). That expected shock will not take place which will again free up money to spend on other things like…toys.

So, maybe consumers in December will find that they have a little more cash in their pockets as well as a little less drain on their charge cards and purchase more than they anticipated. It could happen.

Posted by Richard Gottlieb on October 30, 2008 | Comments (2)