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To: RedFred In A Blue State
If they purchased their gas at $X amount and sold it for $X amount on day-one, what would justify their increasing the same supply 4 or more times? I can't get my brain around the concept, maybe someone can help me?

Reason one. They have to make enough money from the gas in their tanks today to pay for the next delivery.

Reason two. You don't stop buying it when the price goes up -- i.e. you are willing to pay a higher price so they are willing to charge it. They do the exact same thing you would do in your business.

333 posted on 04/27/2006 8:01:52 AM PDT by Ditto (People who fail to secure jobs as fence posts go into journalism.)
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To: Ditto
Reason one. They have to make enough money from the gas in their tanks today to pay for the next delivery.

The theory is, the gas station guy will make the same 10 cent profit off the more expensive gas that he did off the previous tank, in spite of the higher wholsale cost...

So he wants me to loan him 30 cents more a gallon or am I just giving it to him so I can help him finance his business??? When do I get my 30 cents back???

What's the deal, when a new station opens up, are potential customers required to drop in and pay for the first load of gas so the owner then can go buy it from the wholsaler???

342 posted on 04/27/2006 11:03:23 AM PDT by Iscool (You mess with me, you mess with the whole trailer park...)
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