Posted on 04/23/2008 10:19:13 AM PDT by tmp02
If you really want to use consumer pressure to lower gas prices you need a “divide and conquer strategy”
You pick just one major company, doesn’t matter which one, and you boycott them permanently until they lower their prices to a pre declared target.
So suppose the entire nation boycotted Texaco, or Exxon for example, that company would see their revenues dry up with no foreseeable end to the problem since the consumer would not be inconvenienced in any way as they would continue to buy gas elsewhere whenever they wanted.
THEN you might be able to precipitate a price war that lowers prices as the boycotted company made price cuts to attract business and the other companies responded.
About as useful as turning off 5% of the lights in Sidney for an hour on Earth Day.
It would actually help the gas stations if there were 100% compliance. They could squeeze 7 days worth of sales into only 6 days and cut costs by closing down one day per week.
Not sure if filling up with gas only on Thursdays will help or not!
But here’s something that WILL reduce your personal demand for gasoline: fill up your gas tank with WATER. It doesn’t matter what day you do it, it’ll really lower your gas bill for awhile while your car is being fixed.
On second thought, you might want to do it on Saturday, so you can walk down and buy a bicycle to get to work on Monday. (you do work, don’t you?)
I only buy gas on Saturdays. The oil companies fear me.
RBOB gasoline has reached 3.05, probably in fear of the Thursday boycott.
It’s supposed to punish the US government that collects 50 cents a gallon in taxes.
You mean this to punish “gigantic” Exxon-Mobil, the FOURTEENTH largest oil company (or country) in the world? I suggest that you forego buying gas yourself on that day, and spend it instead learning the principles of economics, the structure of the market in which these companies operate, and the effects of competing with an international cartel that would be illegal here - but controls two thirds of the market.
When is you use your scooter, you still have to eat.
And when is you boycott gas once a week, you still have to eat. What's you point, if any?
"Big Oil"? What EXACTLY (and exactitude is important) is "Big Oil"?
Can you explain how the price of oil is "set" and who, if anybody, "sets" it?
Than can you explain how not buying gas on Thursdays would make ant difference?
I don't see any rationale for your suggestion. There may be a rationale, but I don't see it.
Actually if a lot of folks, I am referring to 20 - 30 % of the purchases, do this it will significantly increase the total cost of the transactions to the various companies that is screwed into their overhead and they will have a difficult time getting it out of there (computerized accounting programs would have to be rewritten) so that increase will (initially) come out of their pockets, not the consumers.
Second, the 20 - 30% of fuel purchases will represent a LOT of v-o-t-e-r-s that have the potential to give the nod to their congress critters that "something" must be done. It probably will not matter what that something may turn out to be, it is highly unlikely that it will be anything beneficial to the production companies. It could also take the form of choking off the tax revenue to those very same congress critters. Heck, they MIGHT even make a few noises to the speculators and Hedge fund managers that they need to invest is something other than oil, food commodities and metals.
Third, it is not a boycott, which for the most part would be useless, you are going to need to buy the gas sooner or later and they know it. NO, it shows that the consumers are thinking and that is NOT what the production companies want. A smart, thinking consumer base that is actually working together. Initially this will not have any kind of drastic effect other than the production companies will see real organization going on that telegraphs that they have gone too far and a large majority of those consumers are no longer believing the "reasons" for the huge price increases. They will know that we see them as excuses, not reasons. And we will hunt for ways to actually lower the costs of their products.
Example… what if that 20 – 30% suddenly would not purchase gas from only one producer for three weeks. Not a boycott but a alteration in the consumer pattern. Buy all you like, just do not buy from a particular company. Three weeks later, pick a different company. Such a drastic unexpected change would rock their delivery boat which will cost them money. They will not like that. Not at all.
They will especially not like the fact that the sheep are getting organized… And organization can create forces that did not previously exist Organized forces that can make things happen overnight. Forces they will have to deal with.
Start with only buying exactly four gallons at a time.
A sale is a sale, it wouldn’t increase their transaction cost. There’s a significant chunk of people out there that never get full tanks, they can’t afford it no matter what the gas price is, or they own a scooter or motorcycle and a full tank is a small purchase anyway.
Irritating gas station owners isn’t going to send a message to congress. E-mails, phone calls and letters send messages to congress, irritating gas station owners just irritates gas station owners.
Boycotts are a lot more effective than shaped purchases. If over the course of 2 months you’re still purchasing the same amount of gas they don’t care if you did it in 2 fill ups or 8. Actually they might like 8 better, that gives you more opportunities to go into the convenience store which is where they actually make money.
The rotating company thing is another silly idea that’s gone the rounds. Again pointless. You’re still buying the same amount of gas. Sure one company has a rough couple of weeks but everybody else’s numbers will be up, and then when you rotate the company that had the rough patch will have up numbers and they’ll make up for it.
None of these ideas accomplish anything. If you want to impact gas prices there is only one way to do it: use less. Shaped purchasing is a hollow gesture that can’t effect their bottom line and therefore gives them no reason to change anything.
Each transaction cost them between .30 and about one dollar depending on if you pay at the pump or go inside. So, you are talking about an increase in overhead cost from one dollar to 4 dollars to sell the same 16 gallons of gas. Big difference their.
I don't buy the garbage in the store out by the pumps. I am only pulling in to buy the gas. I shop in the grocery store once a week, same as always.
Creating an organized voting structure can have a huge impact on reactions from industry. That organized structure can influence other areas which I stated in the post...
" It could also take the form of choking off the tax revenue to those very same congress critters. Heck, they MIGHT even make a few noises to the speculators and Hedge fund managers that they need to invest is something other than oil, food commodities and metals. "
You are not necessarily irritating gas station owners, you are interfering with the pattern of delivery. And yea, canceling loads and changing consumption patterns will increase the producers overhead cause them to pay down time and overtime to the delivery drivers. Station owners only pay for the fuel and a "drop fee" that usually goes to the State for abandon gas station Leaking Underground Storage Tank remediation. The station owner just picks up the phone and orders 2,500 premium, 2,500 mid, 5,000 reg. When ever they need it.
But the producers will know they are being messed with. Using less gas might eventually lower some cost but right now consumption is down 3% nationwide. Do you see the price of gas going down? Is crude oil going down? Nope.
It would probably do more good to push the speculators and Hedge Fund managers to put money is something besides oil, food commodities and metals as that is a big factor in the price skyrocketing.
You should send a message to the air companies by holding your breath all day Thursday.
posting twice... nice touch!
Wouldn't work because once one company lowers it's price the consumer would 'cheat'. Your resolve will never be translated to the marketplace.
One solution presented would be for all drivers to drive less. But again, once the price of fuel gets to an acceptable level, those curtailing their driving would resume their old habits.
Lowering fuel taxes, and any other presented solution will only encourage increased consumption in the short run. The fact that there is no viable competition to oil based fuel drives this upward spiral. We could open up every U.S. field for production but it wouldn't make any difference in the long run because those producing the end product still have no competition.
Of course you’re also talking about spending more of your time. And you’re still getting more opportunities to spend more. Sure YOU might not use them, but you can’t say that EVERYBODY won’t, in fact you can be totally sure that SOMEBODY will, and if those somebody’s spend enough extra it will actually result in the gas stations making more money.
And you’re not going to make them change the delivery pattern. More than likely the overall gas sold every week will basically average out. If you have a bunch of people that all fill up every 3 weeks they’re probably going to be fairly evenly split over that 3 week span (ie 1/3 of them will have filled up the week ending April 5th and again this week, 1/3 filled up the week ending April 12th and again next week, and the final 1/3 filled up last week), so now if they change their pattern to get 1/3 of a tank every week the station will sell basically the same amount of gas.
Dropping consumption 3% is nothing. That’s less than the market penetration Macs had back when everybody made fun of them. You need a 10 to 15% drop in usage to make anybody notice. Of course you should keep in mind that significant parts of the price are non-negotiable, gas station owners can’t do a damn thing about the price of oil or taxes, you could drop use 90% but if oil is still over $100 a barrel and taxes are what they are the price of gas won’t budge.
If you REALLY want to change the price of gas end the taxes. Everything else is a hollow gesture 100% guaranteed to failure.
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