Gasoline prices typically increase during holidays and summer months. Hotel room costs are significantly lower during the off-season than during the peak vacation times. Bicycle equipment costs more in early spring than in late fall while indoor exercise equipment is more expensive in early winter than in the summer months. If one florist increases prices, they all do. Gasoline costs more at all gas stations or convenience stores during peak driving times.
Competition also prevents prices from skyrocketing.
If several competitors refuse to increase their prices, companies that raise prices too high risk losing customers, he said. If it goes too high, consumers will switch to other items or services. Instead of driving along, people will car pool or just not drive as much. Instead of buying red roses, consumers will buy cheaper flowers or some other type of gift.