Get Ready To Pay Four Bucks A Gallon

Around 9/2/2005 2:52 PM, Quiet Desperation wrote:

> In article >, Garth Almgren
> > wrote:
>
>
>>You'd get excellent 60' times...
>
>
> "Bye, honey. I'm going out to test the hybrid Mustang's 0 to 60 time.
> I'll be back in a about six hours."


Heh... Not 0-60, 60 foot.

Hybrids will cover the first 60 feet on electric-only surprisingly fast,
which is part of why they make excellent stop-and-go city cars.



--
/ Garth - '83 GL V6stang Hatch <Former MW #7> \
| My V6stang: http://www.v6stang.com/v6stang |
| RAMFM Merchandise: http://www.cafeshops.com/ramfm |
\ Mail for secure reply information /

"Ritz" > wrote in message
...
> Quiet Desperation wrote:
>> In article >, dwight
>> > wrote:
>>
>>
>>>I heard a station owner interviewed on the radio. When asked why she
>>>raised her price so much, she said, "Because everyone else did."
>>
>>
>> So one owner you heard on a radio is extrapolated into everyone. Great.
>
> I own a gas station. In general, I have tanks large enough so that I get
> approximately one delivery of about 10,000 gallons a week. I got gas
> yesterday. A week ago, I paid approximately $2.75 for regular. That price
> is based on the "rack price" at the loading terminal. I pay about 3 cents
> over rack. Some pay more, some pay less (depending on volume). Today, I
> got a load of gas and MY cost off the tanker truck was about $3.25. So
> that's a 50 cent change in just 7 days.
>
> So all this talk about "price gouging" is a bit confusing. While I'm sure
> there are people out there who are taking advantage of the situation, most
> station owners are doing what I do...they take the price of gas as it came
> off the truck, add their usual margin, and change their prices. Gasoline
> is a commodity. You can't charge an arm and a leg over the competition
> without going out of business. If there are people taking advantage of
> this situation, I hope they are dealt with harshly.
>
> Cheers,

Wait... If I understand you correctly, you price your gas based on what YOU
had to pay, not on what you EXPECT to pay for the NEXT shipment?

That must be Business 100.

dwight

On Fri, 2 Sep 2005 22:13:35 -0500, "Hairy" > wrote:

>
>"Ritz" > wrote in message
...

>
>Things are done considerably differently, around here (Iowa). We have 6
>stations in this town of 15,000. When one changes it's price, they all
>follow suit within about 3 hours. The price has nothing to do with the cost
>when the tanks were filled, since the price changes sometimes 3 or 4 times a
>day. The one's that I've asked said that they get a call from their
>distributors, telling them what they have to charge.
>
>Dave
>
Is it possible these 6 stations are being supplied by the same
distributor?

While I may be in error, I was led to believe the major stations (ie
Exxon vs 7/11) are somewhat controlled by the corporation. That the
owners are told how much they are permitted to charge over what they
pay.

According to the latest news reports, while there were complaints of
ripping off the consumers, the investigations have revealed that it is
not near as widespread as people reported.


Spike
1965 Ford Mustang fastback 2+2 A Code 289 C4 Trac-Lok
Vintage Burgundy w/Black Standard Interior; Vintage 40
16" rims w/BF Goodrich Comp T/A gForce Radial
225/50ZR16 KDWS skins; surround sound audio-video.

Gad what fools these morons be....
Children are obscene but should not be heard
Give me a peperoni pizza... or give me a calzone!

On Sat, 03 Sep 2005 00:40:27 -0700, Garth Almgren >
wrote:

>Around 9/2/2005 2:52 PM, Quiet Desperation wrote:
>
>> In article >, Garth Almgren
>> > wrote:
>>
>>
>>>You'd get excellent 60' times...
>>
>>
>> "Bye, honey. I'm going out to test the hybrid Mustang's 0 to 60 time.
>> I'll be back in a about six hours."
>
>
>Heh... Not 0-60, 60 foot.
>
>Hybrids will cover the first 60 feet on electric-only surprisingly fast,
>which is part of why they make excellent stop-and-go city cars.

Just as VWs used to do from a standing start. You could just about
make it across the intersection before you had your doors blown off by
a Pinto....
Spike
1965 Ford Mustang fastback 2+2 A Code 289 C4 Trac-Lok
Vintage Burgundy w/Black Standard Interior; Vintage 40
16" rims w/BF Goodrich Comp T/A gForce Radial
225/50ZR16 KDWS skins; surround sound audio-video.

Gad what fools these morons be....
Children are obscene but should not be heard
Give me a peperoni pizza... or give me a calzone!

dwight wrote:

> Wait... If I understand you correctly, you price your gas based on what YOU
> had to pay, not on what you EXPECT to pay for the NEXT shipment?
>
> That must be Business 100.

Yes, I take the price of the gas that comes off the truck and add my
margin and that's the price. I'm not in the commodities speculation
business so I make the same % on a gallon of gas whether it's a dollar
or five dollars a gallon. I'm not sure I understand your Business 100
comment. *shrug*

Spike wrote:
> On Fri, 2 Sep 2005 22:13:35 -0500, "Hairy" > wrote:
>
>
>>"Ritz" > wrote in message
...
>
>
>>Things are done considerably differently, around here (Iowa). We have 6
>>stations in this town of 15,000. When one changes it's price, they all
>>follow suit within about 3 hours. The price has nothing to do with the cost
>>when the tanks were filled, since the price changes sometimes 3 or 4 times a
>>day. The one's that I've asked said that they get a call from their
>>distributors, telling them what they have to charge.
>>
>>Dave
>>
>
> Is it possible these 6 stations are being supplied by the same
> distributor?
>
> While I may be in error, I was led to believe the major stations (ie
> Exxon vs 7/11) are somewhat controlled by the corporation. That the
> owners are told how much they are permitted to charge over what they
> pay.
>
> According to the latest news reports, while there were complaints of
> ripping off the consumers, the investigations have revealed that it is
> not near as widespread as people reported.

A lot of stations these days are owned by the refiners or by
corporations who bundle together 20+ stations. The days of the
independent "mom and pop" shop are numbered as it is just not possible
to compete against companies who can purchase in amounts one or two
orders of magnitude greater. Their cost is often 10-20 cents/gallon
cheaper. So they can sell gas at your COST and still make a tidy
profit. So if all the stations in this fellow's town are owned by a
major refiner, it's not surprising at all that their prices change on a
daily basis and almost in unison. The major refiners all have similar
costs to produce their product. It's a commodity.

Cheers,

Ritz > wrote:
> dwight wrote:
>
> > Wait... If I understand you correctly, you price your gas based on what
> > YOU had to pay, not on what you EXPECT to pay for the NEXT shipment?
> >
> > That must be Business 100.
>
> Yes, I take the price of the gas that comes off the truck and add my
> margin and that's the price. I'm not in the commodities speculation
> business so I make the same % on a gallon of gas whether it's a dollar
> or five dollars a gallon. I'm not sure I understand your Business 100
> comment. *shrug*

So, you don't change the price of the gas in your tanks as the market
swings? It stays the same? How often do you get gas shipments? Do you
average out the price?

I'm only asking because most stations these days change their prices
several times a day without getting new deliveries in between the price
changes. They're charging more for existing gas when the market goes up.

You don't do that?

Best,
doc

doc wrote:
> Ritz > wrote:
>
>>dwight wrote:
>>
>>
>>>Wait... If I understand you correctly, you price your gas based on what
>>>YOU had to pay, not on what you EXPECT to pay for the NEXT shipment?
>>>
>>>That must be Business 100.
>>
>>Yes, I take the price of the gas that comes off the truck and add my
>>margin and that's the price. I'm not in the commodities speculation
>>business so I make the same % on a gallon of gas whether it's a dollar
>>or five dollars a gallon. I'm not sure I understand your Business 100
>>comment. *shrug*
>
>
> So, you don't change the price of the gas in your tanks as the market
> swings? It stays the same? How often do you get gas shipments? Do you
> average out the price?
>
> I'm only asking because most stations these days change their prices
> several times a day without getting new deliveries in between the price
> changes. They're charging more for existing gas when the market goes up.
>
> You don't do that?


If you'll read my original message, you'll see exactly what I do. But
I'll repeat:

I set the price when I take delivery of a truckload of fuel. That price
is based on what I paid for THAT load of gas per gallon plus my margin.
No, I don't change the prices on a daily basis. Why? The gas in the
ground was bought at a fixed price. My cost for that fuel doesn't
change based on market fluctuations before my next delivery so why
should I change my price? I buy about 10,000 gallons a week and the
price changes when I receive each load (unless MY cost hasn't changed).

Again, I'm not in the business of speculating on commodities prices. If
you want to play that game, you can do it a lot more easily than taking
on all the other risks associated with owning a gas station.
Personally, I think the guys that ratchet up prices the instant there is
a spike so they can double or triple their margins until their next
shipment are a bit slimy. But I guess I'm just old fashioned that way...

Cheers,

"Spike" > wrote in message
...

> "Hairy" > wrote:
>

> >
> >Things are done considerably differently, around here (Iowa). We have 6
> >stations in this town of 15,000. When one changes it's price, they all
> >follow suit within about 3 hours. The price has nothing to do with the
cost
> >when the tanks were filled, since the price changes sometimes 3 or 4
times a
> >day. The one's that I've asked said that they get a call from their
> >distributors, telling them what they have to charge.
> >
> >Dave
> >
> Is it possible these 6 stations are being supplied by the same
> distributor?

No. Until recently, they were divided between two dist's, one 50 miles to
the west and the other, 30 miles to the east. In the past year, Murphy
(walmart), and HyVee(grocery) have opened new stations, and I don't know who
their distributors are.

>
> While I may be in error, I was led to believe the major stations (ie
> Exxon vs 7/11) are somewhat controlled by the corporation. That the
> owners are told how much they are permitted to charge over what they
> pay.
>
> According to the latest news reports, while there were complaints of
> ripping off the consumers, the investigations have revealed that it is
> not near as widespread as people reported.
>

I'm not suggesting that these stations are ripping anyone off. I'm not well
enough informed on their pricing policies to make that determination. My
comment was only in response to Ritz's post, as prices change freely around
here(up and down), with no tankers in sight.
BTW, the price dropped .04 today, to $2.95.9.

Dave