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TiltonBB · 02-23-2009, 10:20 PM

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?

02-23-2009, 10:20 PM	#46
TiltonBB Senior Member Join Date: Feb 2005 Location: Gilford, NH and Florida Posts: 3,018 Thanks: 702 Thanked 2,203 Times in 937 Posts	Pricing 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?