From Christmas to crisis for consumers

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Impending petrol price rises will eradicate the only relief seen by consumers in recent months. E-tolling and 'time-of-use' electricity tariffs, the new pricing regime that will be implemented in July, will hit consumers hard on weekdays between 7am and 10am and 6pm and 9pm, this will continue to cut disposable income while rising taxes will start to hurt consumers.

Coping strategies

Consumers and businesses cannot stick their heads in the sand and say 'Crisis, what crisis?' It is best to accept that we face tough times and develop a coping strategy.

Those with spare cash should try to pay off debt, concentrating first on high interest loans, credit card facilities and overdrafts.

Though most consumers have already cut frivolous expenditure, it is time for a second review focused on recurring charges.

Vices, such as smoking and drinking are being taxed again, so cut down where possible. Another bad habit is needless cellphone chatter. Cut call and data use and you will save hundreds of Rands a month.

Go through your expenditure and see where cuts are possible. Review bank charges and debit orders. Question fees and scrutinise statements. Look at car insurance. You are paid out on current market values, not on values from years ago. Update the policy and save, if you can.

Plan car journeys - do not nip to the shops for just one item. Look at car-pooling or any initiatives with friends, family and neighbours to help contain costs.

Retail 'sharing'

Retailers can assist those who buy multiple items to save 'shopping miles', as core items that go first into the shopping basket can often be displayed together. Explore the option of sharing retail space with other retailers who sell complementary products, not only is it seen as one business to the customers but saves on rental fees and electricity costs.

If your business is based in a retail centre or if you work close to other small businesses, discuss the option of sharing generator costs so that there is less financial burden on your business.

Businesses should also review costs while looking at ways to help customers cope. Heightened and helpful service builds customer loyalty at times like this, says the service specialist.

By taking action, consumers and businesses would draw benefit by shoring up their own morale. You become a victim by sitting back and accepting shoddy service, sky-high charges and empty excuses. However, do something about it, develop a strategy and you create a can-do mind-set. You empower yourself. Lifting the mood like this will become important as the next bout of price rises begins to bite.

Tell yourself 'this, too, shall pass'. Then roll up your sleeves and make it happen.