Quote:
Originally Posted by TiltonBB
The person who thought that gas stations should only change prices if their deliveries came in at a different price obviously doesn't understand how business works. Gas prices, and for that matter prices in general, do not always have a direct correlation with what the seller pays for a product. The retailer will usually try, within reason, to get the most that they can for a product.
If the gas stations in the area were selling gas for $4.00 a gallon and you paid $2.00 a gallon for your gasoline, would you sell it for $2.15 because you only wanted to make 15 cents a gallon? Probably not.
The number one criteria for pricing is competition and determining what the market will bear. Don't you think that Lowes has shoppers looking at Home Depot to see what they are charging for similar items. Don't you think that the reason Shaws prices aren't any higher is because Hannaford's is such a viable and cheaper alternative?
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I let the comments earlier go by that stated I don't understand the business- frankly, I grew up on the floor of my uncle's gas station (Grant's Shell Braintree Mass- Owner/Dealer now a company store after he retired). I turned wrenches and helped him on the business side- I decided at a relatively young age to get out of the business but think I understand it a tiny bit.
There is an important distinction here-SKELLEY'S IS NOT A GAS STATION. Skelley's is a great country store that has a couple of gas pumps out front as a convenience to their customers (and obviously he would like to make $$ as well), as opposed to a gas station with a convenience store (Like Irving/Mobil/ at 104). Totally different business model in my opinion. As an independent Skelley's needs to keep his prices in line as best as he can with the big boys- sometimes he can and sometimes he can't.
Someone can put boycott signs up wherever they want- I think the point of the vitriol that has been spewed is that it is not fair to the owner to merely put a sign that says "Boycott Skelley's". A little more detail would have been nice.