This Has Been Bugging the Shit Out of Me For A Long Time Now...

Discussion in 'Economy' started by AVG-JOE, Jun 20, 2009.

  1. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    Why is it, when I look at the gas prices on a corner where there are multiple competing locations, and one or two of the stations are priced higher (and I mean by 12 or more cents per gallon), there are always several people pumping the more expensive stuff?!?!:confused:

    If everyone bought their gas from the cheapest retailer (especially where the competition is right across the street) wouldn't the price go down?

    Are 'Free Enterprise' and 'Market Forces' a myth?!?

    Does advertising work? Brainwashing people into thinking that some gas is actually worth that much more?

    Are Americans so lazy that adding $3 to $12 dollars per fill-up is o.k.?!?

    Does AVG-JOE ask too many questions in one thread?!??!

    :wtf:

    -Joe
     
  2. Citizen
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    Citizen Active Member

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    Actually, some people do not know that all the gasoline comes from the same pipeline, or in areas where there is no pipeline, the same wholesaler.
     
  3. JBeukema
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    JBeukema BANNED

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    Your fail to account for one key factor: People Are Stupid
     
  4. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    'People' are something I'm not prepared to write off just yet. There has to be some other reason for enough people to make that kind of a buying decision to keep the higher retailers in business.

    What about You, The People of USMB; do you buy your gas based on price?

    (Look for a poll coming to a thread near you)

    -Joe
     
  5. JBeukema
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    JBeukema BANNED

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    Many people assume in general that more expansive = higher quality; 'tis largely due to good advertising
     
  6. Sarah G
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    Sarah G When Nothing Goes Right, Go Left Supporting Member

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    If I need a gas station and it is .12 higher, I will go there rather than drive further looking for a .12 deal. If there was a dollar difference, I would go down the road...

    Everyone has their price.
     
  7. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    That I understand, Sarah... I'm talking about when you can see the price postings of three or four stations from where you are standing - Why do people still go to the expen$ive place?

    -Joe
     
  8. Zoom-boing
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    Zoom-boing Gold Member

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    They think they're getting a better product. They're wrong. It's all one big gasoline can in the sky with different pumps on the ground. Gas is gas. I go for the least expensive, within reasonable distance.
     
  9. pinqy
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    pinqy Gold Member

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    There are a few possible reasons. Brand loyalty (including having a credit card for that brand or the automatic payment thingy Exxon has) or convenience...if I'm driving Northbound, I'm going to use the station on the Northbound side, even if it is more expensive, rather than have to make two U-turns to save at most a couple of dollars. And some people just don't notice the others and aren't willing to leave a pump they're already at.
     
  10. Dis
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    If all I need is gas, I'll go to the one that's cheaper, if it's right there..

    If I need more than gas, I'm going to the larger more convenient (thus more expensive) one because my time is just worth more.
     

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