Gas prices disrupt U.S. consumer spending

Dramatic fluctuations in gas prices are disrupting U.S. consumer spending, leaving shoppers with less money to spend at retail and on entertainment and dining out, according to a new study by The Nielsen Company.The Nielsen's research shows that higher gas prices create a modest change in the number of average weekly gas trips, with consumers averaging 1.3 trips to the gas pumps per week, up from 1.24 trips when gas prices were at their lowest ($2.11 per gallon).

Gas prices have hit national records.An American Automobile Assoc. survey showed that the average price of unleaded regular is $3.53 in Miami-Dade and $3.50 in Fort Lauderdale, which is higher than the statewide average of $3.47.

With rising energy prices oil hit records above $115 a barrel this week, causing concern about the potential damage to the economy. Americans are spending a larger share of their income on energy than at any time since 1986. That has crimped pocketbooks and helped dampen consumer sentiment. Purchases of everything from cars to clothing are falling.Consumers will be spending nearly a fifth of their household budget on gas," said Todd Hale, senior vice president of Consumer and Shopper Insights, Nielsen Consumer Panel Services. "That kind of increase has a direct impact on what they can afford to spend and is something retailers will need to address."

Though consumers might be making more trips to the gas pumps each week to limit the amount they spend per trip, they are not able to limit the amount they spend on gas each week. Nielsen's study shows that the amount of money consumers spent on gas each week increased dramatically as a result of higher gas prices. Per trip spending rose significantly, up 40 percent from $24.42 per trip when gas was at its lowest price, to $34.11 when gas prices hit their peak. With consumers making more than one trip to the gas pump each week, overall weekly gas spending rose from $32.02 to $46.72 per household—a 46 percent increase.

"Consumers tell us they are combining errands and trips, eating out less and doing more things at home to counterbalance rising gas prices," Hale said. "Nevertheless, the amount of money spent on gas each week is still taking a huge bite out of consumers' budgets."
"We are all worth less and earning less than a year ago," says economist Mark Zandi of Moody's Economy.com. "That is why consumers are pulling back, and judging from the confidence numbers they are in a panic mode."

Energy prices, particularly at the pump, are now part of the presidential campaign. On Tuesday, Sen. John McCain (R) of Arizona, as part of a broad economic plan, proposed removing the federal tax on fuels, 18.4 cents a gallon for gasoline and 24.4 cents on diesel from Memorial Day to Labor Day.

"The effect will be an immediate economic stimulus - taking a few dollars off the price of a tank of gas every time a family, a farmer, or trucker stops to fill up," said Senator McCain in his speech at Carnegie Mellon University in Pittsburgh.

Affluent cope with economy through savvy shopping

Americans have pushed steadily into the suburbs, transforming the landscape and (until recently) leaving cities behind. But today the pendulum is swinging back toward urban living, and there are many reasons to believe this swing will continue.Westlake Village, Calif.—A search for certainty, children's preferences and business discipline are shifting the affluent consumer's purchasing habits, according to The Second Annual Survey of Affluence and Wealth in America, produced by American Express Publishing Corp. and the Harrison Group.

The survey, which polled approximately 1,800 individuals with $100,000 or more in annual discretionary household income, found that 70 percent of affluent consumers are choosing to shop "high tech," using Internet strategies to identify, price, compare and sometimes buy significant fashion and home purchases online. These consumers tend to choose online outlets when they are pressed for time, when their past in-store experience did not meet delivery or fulfillment needs, and when they are unafraid of fraud.The remaining 30 percent are "high touch" and prefer to shop alone, in-store, with a knowledgeable salesperson.They tend to choose an in-person retail experience when it involves less than 30 minutes of travel time, when they want to savor the shopping experience, when they are searching for something unique and when they believe a salesperson will add value.

"Our research illustrates how today's affluent and wealthy consumers consider a variety of marketplace and lifestyle factors when making purchasing decisions, be it online or in-store," American Express Publishing Corp. President and CEO Ed Kelly said in a media release. "These customers are also searching for greater certainty in their shopping experiences—whether it's the certainty of excellent value or the certainty of quality. Clearly, it's a new game for luxury marketers and a considerable opportunity to understand and anticipate these changing behaviors and purchasing patterns."

The survey also found that the female head of household, working or not, often manages the day-to-day running of upscale households. Eighty-one percent of respondents (both men and women) said the primary responsibility for buying supplies, including groceries, household necessities, apparel and high-tech needs, is handled by the wife, compared with 26 percent by the husband.Mothers in upscale households, in turn, depend upon their children for ideas on brands to buy, places to shop, technology to deploy, vacation ideas and even "home capital spending choices." Fifty-three percent of respondents report an inclination to purchase "brands that are preferred by my children".

Meanwhile, today's well-to-do families, far removed from the current sub-prime mortgage crisis, have financial anxieties. While nearly three-quarters of respondents (73 percent) are extremely or very optimistic about their own future, only 30 percent share that optimism about the future of America, and even less (26 percent) share this feeling about the future of the world. The study reveals that the more money the respondents have, the less anxious they are.

Purchase decisions for the affluent are driven by specific needs, either to replace a product (57 percent), upgrade an existing product (35 percent) or purchase a new product for a specific occasion (35 percent).In contrast, only one-third of respondents are spurred by browsing. Purchase decisions are largely made due to personal experience (71 percent) and family and friends (37 percent), followed by point-of-sale elements such as salespeople and the in-store experience (35 percent).

Among mass media, the Internet (43 percent) and magazines (30 percent) are cited as the top purchase influencers of the affluent. Just over a quarter rely on experts and objective sources of information (29 percent), with only 19 percent relying on more traditional mass communication outlets such as radio, television and direct mail.

American Express Publishing is dedicated to informing, enriching and empowering affluent Americans, and the Harrison Group specializes in understanding affluent and wealthy markets. Together, the two companies have partnered to produce this study, which provides an understanding of the consumers at the top 10 percent of the American financial pyramid.

Hadar Company Founder Weighs In on Skyrocketing Metal Prices

Today, Hadar is a worldwide supplier of Russian Brilliants, natural diamonds and synthetic stones and was founded in the year 2000.The Company specializes in ideal cut stones and has clients on five continents. Hadar is a full service jewelry provider, offering custom designs, contract manufacturing and jewelry repair services, all at competitive prices.

Gerry Hauser, founder of Hadar Company, advises consumers to buy jewelry only made in the U.S. these days, in light of skyrocketing precious metal prices. In addition to being founder and president of Hadar Company, Hauser also co-founded La Jolla Diamond Co. and Heritage Estate Buyers, Inc. and is recognized as an authority on diamonds and diamond simulants.

"The price for gold continues to climb to new highs, increasing from $600 to $985 an ounce," says Hauser, "and platinum values have risen from $1,100 to $2,260 -- all in the past year. Price proliferations are fueled by international demand for jewelry and investors hedging against inflation."

To compensate for the higher metal prices, Hauser says many competing companies sell rings manufactured in China. Most 14KW rings are high polished nickel over white gold and 'flash' rhodium plated. Initially, the ring will appear very shiny. This appeal can last for three to six months. Hauser says nickel over white gold can produce an allergic reaction and can potentially cause lung damage.

"These rings are outlawed for sale in most of Europe," says Hauser. "Sizing is another issue. Flame used in sizing burns the nickel. The ring will turn black. Some platinum rings manufactured in China have hollow sections or are platinum plated over silver."

Hadar continues to offer engagement rings and other jewelry items manufactured only in the U.S. Hadar does not compromise quality to compensate for the rising cost of gold and platinum. In the previous twelve months, Hadar cut internal costs to maintain stable pricing.

To further aid consumers, Hadar has implemented an Easy Pay Plan. The Easy Pay Plan allows consumers to lock in the price at the time of purchase. Buyers will not pay more because of increased metal prices. Consumers can purchase loose stones or jewelry set in the metal of their choice with a 20% deposit / monthly payments / no interest / no credit checks. Now customers can design their own ring and payment plan. For more information, please visit http://www.russianbrilliants.net/ and http://www.hadardiamonds.com/.

Cash forGold USA.com Offers Huge Payouts to Americans During Economic Decline

Americans affected by the recent economic downturn are selling their old, unwanted or broken gold jewelry to CashforGoldUSA.com in exchange for enormous payouts.

"Customers are sending in material valued anywhere from fifty dollars to more than five thousand dollars," says Norm Schneider, President of CashforGoldUSA.com.

"We had one woman tell us she used the money to book a trip to Hawaii to see her son for the first time in five years... it felt great to provide her with that opportunity."

CashforGoldUSA.com is an innovative website that makes it easy for the public to sell their used, unwanted or broken gold jewelry or silver material for a "higher price than any of their competitors Guaranteed."

In a recent interview, Schneider explained that his company has seen a recent spike in large payouts due to the latest boom in gold and silver markets. "Americans realize that with the market being so high there's no reason to hold on to jewelry that would otherwise just be collecting dust." Schneider went on to add, "Our country is currently under a lot of economic pressure... people are selling their unwanted jewelry because they need cash."

Cash for Gold USA's process is simple and streamlined.Consumers request a "FREE GOLDPAK" (a pre-paid, secured and insured envelope) by calling 1-888-GOLD-808 (465-3808) or by visiting their website CashforGoldUSA.com and filling out a Request Form for a GOLDPAK. The GOLDPAK is used to mail in the gold material.

Within 24 hours of receiving your GOLDPAK, a check will be in the mail, on its way to your preferred address. CashforGoldUSA.com also offers electronic payments through PayPal for consumers who need cash the same day and they have a Spanish version of their website for Spanish-speaking consumers EfectivoporOro.com.

They also recently launched an affiliate program, CashforSilverUSA.com that offers cash to consumers looking to sell unwanted silver items such as Sterling Silver Jewelry, Silver Bars, Sterling Silver Flatware and Serving Pieces, and anything else bearing the silver hallmark.
For additional information regarding the Cash for Gold USA program or to request a FREE GOLDPAK in order to sell your used, unwanted or broken gold jewelry visit CashforGoldUSA.com or call 1-888-465-3808. If you would like to learn more about Cash for Silver USA or Cash for Gold USA visit CJEnvironmental.com.

About CashforGoldUSA.com & CashforSilverUSA.com

CashforGoldUSA.com and CashforSilverUSA.com are both public programs funded by CJ Environmental, Inc. Their services include Precious Metal Scrap Refining, Electronic Scrap Refining as well as Dental Scrap Refining.

Despite economy,online sales continue to climb

Americans are keen to internet marketing and according to a new study from Shop.org. retail sales are expected to experience sluggish growth this year, Americans will continue to flock to the Internet to buy clothing, computers and even cars.The State of Retailing Online 2008: Marketing Report shows that online retail sales are expected to increase 17 percent this year for 125 retailers surveyed.

"From higher shipping costs to changes in consumer shopping habits, online retailers are not immune to the current economic climate," said Scott Silverman, executive director of Shop.org. "But the fact that online sales will increase substantially this year demonstrates the resilience of the channel and is a testament to the value and convenience most customers find when shopping online."

As the number of people new to the Internet begins to wane, online retailers are constantly struggling between investing in strategies that retain current customers or those that attract new ones. According to the report, online retailers allocate 53 percent of their marketing budgets to online customer acquisition and 21 percent of marketing dollars to online customer retention. However, retailers are finding that traditional acquisition programs such as search engine or affiliate marketing may also serve as retention tools that attract existing customers as well as new shoppers.

Sucharita Mulpuru, Forrester Research principal analyst and lead author of the report said,"What's spearheading online retail sales growth is a tale of two shoppers that visit the Web for very different reasons, The casual shopper goes online to look for the best price, leveraging the transparency of the Internet to save money. However, more affluent customers appreciate the convenience of shopping online and are not necessarily looking for the best deal. Retailers would be wise to recognize there are significant opportunities within both audiences and should market to them accordingly."

According to the survey, retailers report that search engine marketing continues to be the most effective way to reach new customers, citing 35 percent of sales coming from that initiative. As a result, nearly all online retailers surveyed (90%) use pay-for-performance search placement, and 79 percent said they will make this tactic an even greater priority this year. Companies are also using offline marketing tactics to drive customers to the web, with catalogs and other direct mail pieces taking priority over methods like television and newspaper advertising.

Though free shipping offers have proven to get some consumers over the obstacle of shopping online in the past, the study showed that retailers' are less interested in promoting free shipping options this year.While 85 percent of online retailers said they used some shipping with conditions promotions in the past, just 35 percent said that they would focus more on these types of promotions in 2008. Instead, retailers are eager to experiment with Social Computing initiatives to attract customers ' 65 percent and 55 percent of retailers respectively said that social network advertisements and widgets would be categories of increased focus this year. However, Social Computing efforts to this point have been considered more effective for brand-building and less proven for driving revenue or sales conversion. Therefore, the report advises retailers to continue investments in proven techniques like email marketing and free shipping promotions to drive sales.

Optimism Prevails at Baselworld

Every year the watchmakers and jewelers converge on Basel, Switzerland in the spring for Baselworld show. It is the place where exhibitors display some of the most dazzling luxury goods in the world.But the U.S. sub-prime mortgage crisis may prove to be an unwelcome guest that watchmakers fear could be a hindrance for business in the year ahead.It would be too soon to say what the outcome of Baselworld will be for diamantaires.Some are hailing the show as a great success (with plans for a bigger and better-located booth next year), while others are resigned to the fact that Basel is slow and just another necessary stop on the seemingly endless trade show merry-go-round.

Jacques Duchene, president of the BaselWorld Exhibitors Committee said the Swiss watch exports reached about 15.75 billion in U.S. dollars (16 billion Swiss francs) last year, a 16 percent increase over the previous year, and a rise of more than 50 percent over the previous four years, in a press conference,the day before the show opens.But despite the good news, economic troubles of recent months are worrisome, and companies should be prepared, Duchene said. He noted, however, that the Swiss watch industry is optimistic for 2008 since new markets in other parts of the world are developing, with Swiss watch exports to Russia up 57.4 percent and exports to China up 43 percent, for instance.

Vimal Lakhani, managing director of Kiran Gems, said the quantity of the people isn’t worrying him – he is interested in the quality, and this Sightholder, which specializes in white goods under 25 points, is seeing all the people it needs.“We are exhibiting for the first time for three reasons,” he says. “It’s a brand building exercise, we want to continue our relationship with our existing customers and we are looking to find new clients.”

According to Avi Paz of the Israel-based Avi Paz Group ,58 percent of exports goes to the U.S.therefore it would impact his trade but he also said there is a positive side to the decrease in the value of the dollar that people should not forget. “The interest rate of the dollar, which forms a lot of our expenses, has dropped. Fewer expenses will give us some oxygen, which is very important for our industry.”However being optimistic he said the U.S. will not affect him too badly,because of his philosophy of not concentrating on only one market and “We should not forget about the U.S., though,” he said. “We have to take care of it, even if it is going down.”

As for 2008 watch models, the Swiss will roll out original large chronographs for many of its new 2008 models, including ladies' chronographs that offer some innovative mechanical functions, said Francois Thiebaud, president of the BaselWorld Swiss Exhibitors Committee.Big cases, pink gold and jewelry-style watches for men are also on tap at this year's show.

Crossing borders through the Net to Sell Jewelry

eBay Live Auctions is slowly being inundated with sellers of jewelry hailing from Thailand and India. These companies state within their online bidding agreements that buyers/bidders are subject to dispute arbitration under California law. In addition, those residing in California are subject to paying sales tax on their purchases. However, the sellers have no physical address in the United States..huh? While the Bidder Agreements are to be construed under California laws, these companies display physical addresses (according to their web site registrations) in countries such as Thailand and Greece. Contact information posted on associated web sites for these sellers displays international telephone numbers.

In reviewing eBay Live Auction (within the jewelry category), the product being offered (according to Feedback left by buyers) is either great or sub-standard. One seller received dozens (did not have the time to count all of the pages) of negative feedback (from just one buyer)who has so many claims against the seller, as to make one wonder who's policing eBay Live auctions. If there was ever a time where an inordinate amount of promotional gemstones and industrial diamonds, were being hawked on the Internet, those offering goods out of India and Thailand must have truly cornered the market. These sellers are using words to describe gemstones as Fine, AAA, AAA++++++, Natural, Authentic and just simply out of this world. The non-stop jewelry auctions on television are entertaining, however, the sellers out of Thailand and India are truly making a concerted effort to inundate the U.S. market with product that is simply appalling in both design and quality.

The true asset test for the rings with super sized big stones would be to drop them in a glass of warm water and see if the water turns the color of the gemstone. What's even more amusing is the certificate of authenticity that comes along with the purchase of a so-called Fine 25.00 Carat Emerald and Diamond Ring. There are four or five sellers all selling the same product at whatever price the market will bear.What's even more astounding is that all of these auctions are running in the same line. Seems that one seller out of Thailand, manufactures goods to a number of other sellers. In other words, all of this product (which is high priced and would not stand the acid test of a "real" appraisal) is all coming from the same place.

Then comes the notion of why would anyone residing in the United States buy jewelry from anyone in Thailand or India and pay the high shipping costs and duty? However, if one wants to return an item, they can send it back to the concerned addresses. Are these companies domiciled in California, Thailand or India?

Want to buy jewelry or gems? How about a visit to your local jeweler in your own hometown? If you want to buy it on eBay, buy from legitimate (domiciled) companies that you can actually contact without having to dial a country code.