Originally Posted by 8mpg
but its bullshit when they mark up the price and didnt even get a new delivery. The QT by my house changes their prices DAILY...I sure as hell dont see their trucks delivering daily. As soon as oil is up for the day, gas prices seem to go up, but it doesnt work vice versa.
Originally Posted by slow06
It reminds me of the LIFO (Last in, First out) accounting method. When prices are on the rise you sell the most recent products, which cost you more, first. All the while you have product you paid less than that for. Might be a bad comparison, I don't know.
It is actually our fault. When prices are rising we'll search out a better price. When prices are dropping consumers don't search as much. So gas stations will be slow to drop the price... just enough to keep you from searching out a better price.
Interestingly, stations make a better profit margin when prices are falling then when prices are rising.
To make up for the lower profit margin when prices are rising stations will attempt to hold back on lowering their price as much as possible.
Psychologically, the typical consumer will be more than glad to pay more IF the last time they paid for gas at a particular station it was higher. So QT knows even a .02 drop in prices will keep their typical customers from search out a better deal down the road.
We all know DFWStangs members are astute consumers so it doesn't apply to us.
Personally it would take almost a .10 differential between two stations for me to make a change. If the price is only a .02 differential and I'm putting 22 gallons into the Tahoe, I'm only saving 44 cents by switching. At 10 cents we're talking 2.00 which could save me a hundred a year. A two cent differential only saves me about 22 dollars a year.