Thursday, September 22, 2005
We Reap What We Sow
Speaking of annoying radio announcers in the morning, 93.1 Oldies noted that a gas station was charging $ 0.07 per gallon more than another station ten miles away selling the same brand and owned by the same company. That factoid seemed meaningless enough, then the announcer added that the difference was a rip off and he was raised "better than that."
Let's put aside the fact that the cost of selling gasoline includes the cost of real estate or rent, which can vary widely in much less than ten miles even with common ownership. Who says gas stations have to sell their gas at a minimum profit?
I am sure the sales reps for Oldies 93.1 sell their ad time for as much as they can get, not the bare minimum over cost. The same is true of almost all businesses. That station charging the higher rate only does so because it is still selling gas at that price.
By continuing to buy SUV's and not demanding our elected representatives deal with our country's lack of energy independence, we have made it clear to petroleum companies that we will buy gas at whatever prices they charge. I don't like the prices at the pump anymore than the next person, but it is what we have collectively chosen.
Let's put aside the fact that the cost of selling gasoline includes the cost of real estate or rent, which can vary widely in much less than ten miles even with common ownership. Who says gas stations have to sell their gas at a minimum profit?
I am sure the sales reps for Oldies 93.1 sell their ad time for as much as they can get, not the bare minimum over cost. The same is true of almost all businesses. That station charging the higher rate only does so because it is still selling gas at that price.
By continuing to buy SUV's and not demanding our elected representatives deal with our country's lack of energy independence, we have made it clear to petroleum companies that we will buy gas at whatever prices they charge. I don't like the prices at the pump anymore than the next person, but it is what we have collectively chosen.
