I think you have a good point. People are eager to raise the price and take the profit but reluctant to lower the price if they can still make profit. That's what just about everyone I know does. The grocer, the laborer and the McParts house all do the same thing. When NAPA raises their prices do they sell all the old stock at the old price? Have you wondered about the carpenter who can't make it back to your job until maybe friday? He found a job that pays more than yours does and he's "making hay while the sun shines".
At the time I had my gas station, prices were just topping $1.00. When I bought gasoline it was a cash transaction. The oil company wanted paid when they delivered. So sometimes my investment made really good money and sometimes I wasn't making the standard .10 per gallon, in order to keep selling. Ken In a message dated 9/22/2005 7:28:10 AM Pacific Daylight Time, [EMAIL PROTECTED] writes: From: Mitch Haley <[EMAIL PROTECTED]> Subject: Re: [MBZ] here we go again To: Mercedes mailing list <[EMAIL PROTECTED]> Message-ID: <[EMAIL PROTECTED]> Content-Type: text/plain; charset=us-ascii David Brodbeck wrote: > > I suppose they'd argue they're just charging their replacement cost -- > what it'll cost to replace the gas you're buying. Makes sense, if you sell the contents of your storage tanks for $2.60 just so you can pay $2.70 to refill them tomorrow, you'd be better off just closing the store for a day and leaving the tanks full. The fact that you paid $2.50 for what's in the tanks now is irrelevant. OTOH, some merchants are too resistant for selling the $2.70 stuff for $2.60 when the wholesale goes back down to $2.50. So what you see is prices going down 1-2 cents per price change, and up 20 cents all at once.
