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

[AVG-JOE]

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?!?!

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?!??!



-Joe

 

[Citizen]

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?!?!

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?!??!



-Joe

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.

 

[JBeukema]

Your fail to account for one key factor: People Are Stupid

 

[AVG-JOE]

Your fail to account for one key factor: People Are Stupid

'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

 

[JBeukema]

Many people assume in general that more expansive = higher quality; 'tis largely due to good advertising

 

[Sarah G]

Your fail to account for one key factor: People Are Stupid

'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

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.

 

[AVG-JOE]

Your fail to account for one key factor: People Are Stupid

'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

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.

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

 

[Zoom-boing]

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.

 

[pinqy]

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

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.

 

[Dis]

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?!?!

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?!??!



-Joe

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.

 

[Paulie]

The only time I'll stop at a more expensive gas station is if I definitely can't make it to the known cheaper ones without running out of fuel, or if the cheaper one is just completely out of my way.

If there's a corner with 4 stations, I'm hitting the cheapest one. Anyone who doesn't is a fool.

 

[alan1]

There 2 gas stations near my house that differ in price by about 7-8 cents. Depending on which way I am going after filling up, I sometimes go to the more expensive one. You cannot make a left hand turn when exiting the cheaper one due to traffic conditions.

 

[American Horse]

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?!?!

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?!??!



-Joe

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.

Some people simply aren't paying attention, stopping for a special coffee or snack, or perhaps it is more convenient to stop at a station without having to cross traffic lanes. But the station owners have different expense ratios and have to charge more, and depend on loyal customers, during some brief periods when their prices are high out of the norm. There are various incentives, but sometimes people are just "out of it"

I would not be too quick to assume that when some people make decisions like this one that they are idiots; they may simply have other cares.

 

[Bern80]

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.

This is actually NOT true zoom. There are many different gas refining companies in the U.S.. So no, gas is not just gas. Some put detergents in there gas to help keep your engine clean, etc. Low price is not the only variable the influences buying decisions obviously.

 

[submarinepainter]

My wife goes to higher station cause they pump it for her

 

[JBeukema]

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.

This is actually NOT true zoom. There are many different gas refining companies in the U.S.. So no, gas is not just gas. Some put detergents in there gas to help keep your engine clean, etc. Low price is not the only variable the influences buying decisions obviously.

All gas goes into a common system; the gas an oil company puts in is not the same gas they take out- though it must meet the same standards.

After it is removed from the nationwide pipeline system in or near a given city, the local branch of the particular reseller (Chevron or whatever) adds any additives they wise- which usually meet the same standards- before taking the fuel to the local pumps for resale

 

[alan1]

My wife goes to higher station cause they pump it for her

But do they pump it for you?

 

[JBeukema]

Is it 'full service'?

 

[AVG-JOE]

My wife goes to higher station cause they pump it for her

I take it submarine painting pays well, and your wife is incredible in the sack?

-Joe

 

[Baruch Menachem]

One of the reasons that I get stung is that I just don't ever care cash, I buy only with plastic.

That means I can't buy at Arco, which is the cheapest of the big majors.

Also I get a discount at Chevron for using their card.

As to the other, the gas companies pay a lot of money to make you believe that there is product differentiation. That somehow gas a is better than gas b.

Here in Oregon, we don't pump our own gas. So there is also the matter of customer service. In the area of town I used to live, there was a station where you got real good service by the attendant for 3 cents a gallon more. Sometimes it was worth it. And there were some attendants that it was 4 cents a gallon to avoid them.

Some stations give stamps too.

Lots of good and bad reason for going to the higher price station.