RHINO4
Champion Author
Dallas
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Message Posted: Aug 25, 2012 6:36:23 PM
It is just price gouging. Gas at seven stations in Little Elm and Frisco selling for $3.29. But come on down 380 to Mckinney and it's $3.55.
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DerekS
Champion Author
Seattle
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Message Posted: Aug 25, 2012 6:13:55 PM
They do that to offset when they have expensive gas and the price is going down. However, they do increase it fast and decrease it as slow as possible. I do not envy the gas station owner.
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inventorymaster
Champion Author
KW
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Message Posted: Aug 25, 2012 6:51:26 AM
to make more money
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Texacoguy
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Tampa
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Message Posted: Aug 25, 2012 6:42:13 AM
Mertieman, the terminal does NOT set the prices! I have no idea where you come up with your misinformation.
Question for you - how much gas does the average station sell in a month? And how much would you have to sell every day to get a delivery every day?
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MertieMan
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Lexington
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Message Posted: Aug 25, 2012 6:22:21 AM
FYI; If a station has any turn over at all, which most do, then they receive gas everyday from the terminal, who sets the prices anyway.
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bearzz
Champion Author
California
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Message Posted: Aug 25, 2012 2:00:35 AM
I always thought this was unfair also. Someone explained to their theory to me once, but it wasn't all that clear.
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Buddy2264
Champion Author
Tampa
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Message Posted: Aug 25, 2012 12:56:06 AM
I always wondered on that one. The prices is going up here already for the storm and no additional higher priced oil has been pumped or supply disrupted, except that more people in Florida are probably filling up and storing fuel for the storm.
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_Sparty_
Champion Author
Chicago
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Message Posted: Aug 25, 2012 12:20:21 AM
How about when the price drops? Your theory doesn't work.
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grampi47
Champion Author
Illinois
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Message Posted: Aug 24, 2012 7:54:35 AM
"Just about the same way a supermarket can increase prices of goods already on the shelf."
Yes, but you will also see those same items in the grocery store go on sale overnight...you'll never see gas prices come down that quickly...once they go up, they're gonna stay there a while....
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tnsher21
Rookie Author
Tennessee
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Message Posted: Aug 23, 2012 8:56:15 PM
Caveat emptor - Let the buyer beware.
If you don't like the way the gas station/convenience store does business - go elsewhere.
Most busy stations turn their gasoline inventory over every day. How do you know how much gasoline was left in their tanks?
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katiengass
Rookie Author
Nashville
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Message Posted: Aug 21, 2012 11:24:29 AM
just the way it goes
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Shockjock1961
Champion Author
Illinois
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Message Posted: Aug 21, 2012 11:16:53 AM
Hey, it's a free country. They can charge what they want, regardless of what they paid for the product, and you, as a consumer, can choose whether or not you want to buy their product at the price they charge.
People seem to forget this simple fact...
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Somis1
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Ventura
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Message Posted: Aug 21, 2012 9:03:59 AM
Because if prices go up that inventory in the tank is worth more. And it should be the same with price declines, but it doesn't seem to work out that way.
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PatAZ
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Tucson
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Message Posted: Aug 21, 2012 9:00:06 AM
Just about the same way a supermarket can increase prices of goods already on the shelf.
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2Tall
Champion Author
Maryland
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Message Posted: Aug 21, 2012 8:54:21 AM
They got us by the.....
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idw3
Rookie Author
Seattle
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Message Posted: Aug 14, 2012 2:26:28 PM
greed
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Slammyhagar
Rookie Author
Ogden
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Message Posted: Aug 14, 2012 12:04:59 PM
Retail prices (for the most part) are directly driven by competitor prices and indirectly driven by the cost of product in the ground and what is coming on a delivery. Once one retailer moves their prices up or down the rest start to follow.
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dangasman
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Michigan
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Message Posted: Aug 14, 2012 11:44:56 AM
say i bought 1000 gals at $ 1.00 a gal= $1000.00, my cost goes up 30 a gal, now my 1000 gals cost $ 1300,00 a gal, where did i get $300.00 dollars to pay for the gas? when i made 5 cents a gallon.
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grampi47
Champion Author
Illinois
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Message Posted: Aug 14, 2012 10:53:30 AM
I don't understand why they have to guess on how much their next refill will cost....sounds like just an excuse to raise gas prices to make more money...why can't they just pay whatever the cost is when they fill their tanks and then price the gas according to what that cost was? I don't understand why every thing has to be done ahead of time...take the anticipated price out of the picture and charge based on actual cost...
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bluenvoy
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Nashville
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Message Posted: Aug 14, 2012 9:10:35 AM
They can do anything they want.
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alphanyr
Champion Author
Connecticut
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Message Posted: Aug 14, 2012 7:54:00 AM
greed
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BigHorne1
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Missouri
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Message Posted: Aug 14, 2012 7:53:09 AM
They call it hedging the prices. This that they can make a few cents more a gallon, even though they didn't get a delivery. It should be that when the prices go up and they get their next delivery than the price per gallon goes up. We as consumers are getting nickled and dimed for every dollar we have.
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MertieMan
Champion Author
Lexington
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Message Posted: Aug 14, 2012 7:46:10 AM
All gas stations get phone calls from the king sitting up on a throne telling them how much and when to raise their prices. Around here they all go up at the same time as Marathon Oil owns the terminal here and basically controls all prices within this area.
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Dennis783
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Des Moines
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Message Posted: Aug 14, 2012 6:53:46 AM
any excuse to raise the price is a good one, but it doesn't work the same when the price should lower
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maxstar
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Chicago
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Message Posted: Aug 13, 2012 9:58:29 PM
As others have stated, the revenue from the fuel in the ground will be needed to purchase the next shipment, pay for overhead and provide for a profit margin. The concept is no different than other businesses whether that product is gasoline, coffee, shoes etc...
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Gas_Buddy
Champion Author
Maryland
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Message Posted: Aug 13, 2012 4:05:29 PM
boba_cook:
How about, "...for the same reason that a car dealership in Cincinnati can offer the same car to different potential customers for different prices, even though the car costs the dealership the same amount regardless of who they sell the car to, whether it's you or me."
What's the difference between selling "the same gas that was in the underground fuel tanks the day before and it was $.30 cheaper" and the car sales analogy? Hundreds, if not thousands, of dollars. And you're not concerned about the car price, are you?
[Edited by: Gas_Buddy at 8/13/2012 5:07:20 PM EST]
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TrixieNY
Champion Author
Buffalo
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Message Posted: Aug 13, 2012 2:24:41 PM
LOL Canada!
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1OILMAN
Champion Author
Alabama
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Message Posted: Aug 13, 2012 2:17:53 PM
Must have moved from Canada.
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TrixieNY
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Buffalo
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Message Posted: Aug 13, 2012 1:49:01 PM
Thanks for stopping by rookie, unlikely we'll ever see you again.
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OceanArcher
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Mississippi
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Message Posted: Aug 13, 2012 11:20:41 AM
Thank you BrerRabbitTX for a clear and concise explaination ... one of the best I've seen in quite a while
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1OILMAN
Champion Author
Alabama
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Message Posted: Aug 13, 2012 10:42:02 AM
How can they? The same way they do every time. It is the same process.
BrerrabbitTX has it right in his stock analogy.
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brerrabbitTX
Champion Author
Houston
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Message Posted: Aug 13, 2012 8:40:56 AM
A question to all who think it's sad they can do this and it's not fair.
What business or industry do you work in? If your companies costs go up does your company just bite the bullet and take the loss? Do you think all companies should do this? Do you want to live in Russia, or China, or Venezuala where prices are controled by the government? Price controls that cause shortages and outages all the time. Do you want to wait in lines to buy your food and just hope there is some left when you get in the store?
Really what you are talking about here goes way beyond the price of gas and starts bordering on doing away with free enterprise.
I really would like to know who everyone works for and what their individual companies policy is around cost increase.
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Adogg3
Rookie Author
Massachusetts
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Message Posted: Aug 13, 2012 7:43:54 AM
I know it doesn't seem right but as long as everyone else is around that prices they can bring the price up in prepartion of the rising gas prices.
But think of it this way and maybe some stations are not doing this, but if gas was 3.49 and it was going to 3.69 they could put it at 3.59 for the rest of the old gas and a little of the new gas and then put it up to 3.69 they are just trying to make the jump not so big etc.. stuff like that happens
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Dale Jr.
Champion Author
Illinois
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Message Posted: Aug 13, 2012 7:37:36 AM
Sad that they can do this.
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Banjoe
Champion Author
Winnipeg
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Message Posted: Aug 13, 2012 7:26:25 AM
The same reason bank robbers steal money that was in the bank before they got there.
That's where the money is and they hold the gun.
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chemist74
Champion Author
Cleveland
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Message Posted: Aug 13, 2012 7:19:16 AM
You obviously do not know much about economics or business.
They own the gasoline in their storage tank and they can raise the price any time they want to. You also have the freedom to not buy gasoline at their station.
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hornet17
Champion Author
Vancouver
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Message Posted: Aug 13, 2012 12:14:12 AM
they charge whatever the market will bear or whatever all the stations around them are charging.
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AFOS
Champion Author
Chicago
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Message Posted: Aug 12, 2012 11:31:34 PM
The concept of pricing at replacement cost, ie raising pump prices when the costs of a new delivery has gone up, is part of a complete pricing strategy, which includes on the way down much slower adjustments. Nevertheless as you can find in other topics in this forum, in the long run it doesn't yield a lot of profit for stations.
Seeing as you're from Cincy...the 30 cent rises was probably from Speedway or spurred by them. And if it went up that much in one swoop, they were selling BELOW replacement cost before it went up. Speedway dominated markets are prone to wide swings as Speedway may let margins erode and prices drop even as wholesale is rising for a several days. Then bang...a correction all at once. Have seen 40+ cent rises here this year.
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brerrabbitTX
Champion Author
Houston
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Message Posted: Aug 12, 2012 3:28:13 PM
Two concepts you really need to grasp about this.
1. You buy stock at 9:00 am in a company. You pay $10 a share. By 3:00pm it is worth $20 a share. Now why don't you sell it for $12 a share? I mean come on the stock is the same piece of paper you paid $10 for and if you sell it for $12 that's a 20% profit. To sell it for anything more makes you greedy!
2. What will the next load of gas cost you? You do not price off of your weighted average inventory cost, you price on replacement cost. i.e. when all this gas in the tank is gone what will I have to pay for the next truck full.
To price the way you are suggesting would put gas stations out of business in no time.
[Edited by: brerrabbitTX at 8/12/2012 4:29:17 PM EST]
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priceit
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Portland
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Message Posted: Aug 12, 2012 2:38:33 PM
Just like the grocery store can on green beans, the computer companies can on new laptops, tc. It is a free market. They can go up or down whenever they choose
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