BUNNY RANCH BLUES

Some businesses are obviously more prone to the effects of recession than others.

Yet no one can be complacent. Even those that do not suffer the adverse consequences directly may suffer indirectly as their customer base is hit.

Indeed, negative economic factors can impact on some unexpected businesses in unexpected ways – and demand that they do the unexpected in response.

For example, providers of what might be termed very personal services are unlikely to see any falling of demand for their product in hard times – quite the contrary, as some men seek consolation in strange places.

Nor should the expenses of static providers, like the licensed establishments of Nevada, be increased disproportionately by factors like rising fuel prices.

However, the increase in the price of fuel is hitting some of those places very hard because it is hitting their customers very hard.

Whereas as those establishments in or near urban centres rely on tourist income, those in more out of the way places, especially on the Interstate Highways, are dependent to a surprising degree on passing trade from truckers.

Many of the truckers are self-employed sub-contractors with their own rigs, who must pay for their own fuel. Rising oil prices leave them with less to spend at recreational stops on the highway.

An industry famed for its imagination has responded with positive marketing other businesses would do well to emulate – if not quite in the same way! A range of discounts and schemes are on offer to tempt the cash strapped trucker – including, most appropriately, complimentary fuel discount cards with every, er, service.

At the same time, the recession is tempting an increasing number of women to consider a career in that industry, thus giving scope to reduce prices.

Supply increases, prices decrease – it is yet another vindication of classical economics.

Adam Smith would be proud... or perhaps not.

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