I feel like the oil companies would just be like "Oh, weird. Guess tomorrow we're getting 4.4 billion."
This topic is locked from further discussion.
[QUOTE="jman1553"]"2.2 billion" "That's almost 3 BILLION" Umm. What?MgamerBDI lol'd :lol:
As did I :lol:
[QUOTE="comp_atkins"]sounds pretty stupid. i guess if i owned a station i'd just hike my prices up a bit on the 14th or 16th..CKYguy25
i'll try it though, see what happens
gas margins are tiny, 2% -8% depending on the gas type, at least here in MD were competition is healthy. based on the a sample of 8 store owners i know.[QUOTE="coolbeans90"]almost as bad as TC's theory.. consumption or volume of sale does not have a direct causation to profit. unless you assume margins to be static where volume between cases is not .......That's a stupid idea. That simply defers payment until a day or two later, thereby not removing any money from the oil companies. If you really want the idea to work, have a "Don't drive on X day". That reduces consumption, and consequently, profit.
surrealnumber5
Margins aren't static, but the volume sold is (in conjunction with price mechanisms), ideally, at a level which generates the most profit. (a maximum of profit per unit * quantity sold) Likewise, deviating from that maximum should result in less profit.
almost as bad as TC's theory.. consumption or volume of sale does not have a direct causation to profit. unless you assume margins to be static where volume between cases is not .......[QUOTE="surrealnumber5"][QUOTE="coolbeans90"]
That's a stupid idea. That simply defers payment until a day or two later, thereby not removing any money from the oil companies. If you really want the idea to work, have a "Don't drive on X day". That reduces consumption, and consequently, profit.
coolbeans90
Margins aren't static, but the volume sold is (in conjunction with price mechanisms), ideally, at a level which generates the most profit. (a maximum of profit per unit * quantity sold) Likewise, deviating from that maximum should result in less profit.
Lets say your local gas-station usually has to fill it's tanks every week. So they buy their gas on the 8th, that gas lasts a week or so, they buy new gas. Now instead of buying gas every 7 days, this one time, they'll have to wait 8. Oh no! it's as silly as a "dont buy chocolate bars on X day" event, because the store has already purchased them from the supplier, they'll just be on the shelf a day longer. Oh so tragic, what ever will the store owners do?almost as bad as TC's theory.. consumption or volume of sale does not have a direct causation to profit. unless you assume margins to be static where volume between cases is not .......[QUOTE="surrealnumber5"][QUOTE="coolbeans90"]
That's a stupid idea. That simply defers payment until a day or two later, thereby not removing any money from the oil companies. If you really want the idea to work, have a "Don't drive on X day". That reduces consumption, and consequently, profit.
coolbeans90
Margins aren't static, but the volume sold is (in conjunction with price mechanisms), ideally, at a level which generates the most profit. (a maximum of profit per unit * quantity sold) Likewise, deviating from that maximum should result in less profit.
assuming you can assume, as a no planner, i cant make those assumptions. with less volume i would guess the margins would need to increase to at all make the business profitable. without an adjustment in the margin with a large decrease in volume most stations would just go under. the margins on gas are tiny and its not like there are no fixed operating costs when it comes to gas stations, let alone the variable operational costs. im always going to argue against people who have the hubris to think they can project the actions of others[QUOTE="coolbeans90"][QUOTE="surrealnumber5"] almost as bad as TC's theory.. consumption or volume of sale does not have a direct causation to profit. unless you assume margins to be static where volume between cases is not .......surrealnumber5
Margins aren't static, but the volume sold is (in conjunction with price mechanisms), ideally, at a level which generates the most profit. (a maximum of profit per unit * quantity sold) Likewise, deviating from that maximum should result in less profit.
assuming you can assume, as a no planner, i cant make those assumptions. with less volume i would guess the margins would need to increase to at all make the business profitable. without an adjustment in the margin with a large decrease in volume most stations would just go under. the margins on gas are tiny and its not like there are no fixed operating costs when it comes to gas stations, let alone the variable operational costs. im always going to argue against people who have the hubris to think they can project the actions of othersYou definitely can't assume that margins will increase enough to recuperate lost volume. Sure, they go up, but it can only go up so far before additional loss in volume matches the increased return per unit sold. The quantity sold deviates from the level of the maximum. I'm not arguing for the idea, but it would hit the pockets of gas stations.
Yea, isn't like half of our oil from the North and South America?I wonder if these people know that we get less than half of our oil from the Middle East?
Wasdie
Learn to understand that not buying from a 3rd party once, doesn't effect a supplier. Heck Even if EVERYONE decided "hey i'm not going to buy gas on the 15th" There will be an increase of people filling on the 14th(in preparation), and the 16th(because they're low on gas now) So they lose one day's worth of sales, but will be a little busier on the days before and after. Not only this, but the gas is already "shelved" so to speak, the major oil companies have already made their cut off of the oil at that station. a 7-11 waiting an extra 1 day before they get their tanks refilled wont cause the oil companies to lose money.Learn to math, Nibroc.
coolbeans90
Nibroc, please learn to reason quantitatively. It really isn't that difficult. People do not drive for one day. K, now that we have this established, people consequently purchase a reduced amount of gasoline. This alters the profit margin per unit * quantity of units sold away from its peak. This in turn results in reduced profits.
Q.E.D.
Addendum: The stuff you brought up doesn't affect this.
What? It's a "DO NOT PUMP GAS ON APRIL 15" NOTHING TO DO WITH DRIVING. People will still DRIVE on the 15th, they simply WONT BUY GAS. Meaning, they WILL buy gas on the 14th or 16th, depending on when they need it. Someone driving home on the 14th, remembers that the 15th is "don't buy gas day" so they get gas on their way home. Someone realizing their tank is low on the 15th, but wants to celebrate (is that the right word?) the "dont buy gas day", will drive home and buy gas the next day, april 16th.Nibroc, please learn to reason quantitatively. It really isn't that difficult. People do not drive for one day. K, now that we have this established, people consequently purchase a reduced amount of gasoline. This alters the profit margin per unit * quantity of units sold away from its peak. This in turn results in reduced profits.
Q.E.D.
Addendum: The stuff you brought up doesn't affect this.
coolbeans90
assuming you can assume, as a no planner, i cant make those assumptions. with less volume i would guess the margins would need to increase to at all make the business profitable. without an adjustment in the margin with a large decrease in volume most stations would just go under. the margins on gas are tiny and its not like there are no fixed operating costs when it comes to gas stations, let alone the variable operational costs. im always going to argue against people who have the hubris to think they can project the actions of others[QUOTE="surrealnumber5"][QUOTE="coolbeans90"]
Margins aren't static, but the volume sold is (in conjunction with price mechanisms), ideally, at a level which generates the most profit. (a maximum of profit per unit * quantity sold) Likewise, deviating from that maximum should result in less profit.
coolbeans90
You definitely can't assume that margins will increase enough to recuperate lost volume. Sure, they go up, but it can only go up so far before additional loss in volume matches the increased return per unit sold. The quantity sold deviates from the level of the maximum. I'm not arguing for the idea, but it would hit the pockets of gas stations.
acting as if stations are not already competitive. if stations could collude, as many Marxian would propose, gas would be much higher. the drive to undercut to get a larger share is common place. if the market took a considerable dip as you proposed gas prices would need a noticeable hike or alternative sources of revenue would need to be found. if i had to guess this would push out all gas stations(just gas), most market stations (snacks and gas) and would lead to a commanding dominance of liquor stations (booze and gas). that also assumes the proprietors wish to push other stations out and not that they would wish to compete on the margins with those stations that dont have other revenue sources, and that is in no way a safe assumption. I don't know what the market is like in your area, I just know the business end from those in the extended family that own stations and the three in my old college town I did taxes for. Hell in VA there may well be some sort of oligopolyWhat do I think about it? I think that it's 2012.Hubadubalubahui wad wonding if i was the only one to catch that
[QUOTE="Hubadubalubahu"]What do I think about it? I think that it's 2012.-DirtySanchez-i wad wonding if i was the only one to catch that nice sig
I honestly would like to see gas prices skyrocket. Maybe people would grow a conscience and start using alternate means of transportation and fuel.
In any case, I don't think not buying gas for a day is going to make that much of a difference -- specially when the campaign is directed only at internet users (and internet users who actually saw the post).
[QUOTE="coolbeans90"]What? It's a "DO NOT PUMP GAS ON APRIL 15" NOTHING TO DO WITH DRIVING. People will still DRIVE on the 15th, they simply WONT BUY GAS. Meaning, they WILL buy gas on the 14th or 16th, depending on when they need it. Someone driving home on the 14th, remembers that the 15th is "don't buy gas day" so they get gas on their way home. Someone realizing their tank is low on the 15th, but wants to celebrate (is that the right word?) the "dont buy gas day", will drive home and buy gas the next day, april 16th.Nibroc, please learn to reason quantitatively. It really isn't that difficult. People do not drive for one day. K, now that we have this established, people consequently purchase a reduced amount of gasoline. This alters the profit margin per unit * quantity of units sold away from its peak. This in turn results in reduced profits.
Q.E.D.
Addendum: The stuff you brought up doesn't affect this.
Nibroc420
I believe coolbeans proposed no driving instead of no buying gas on the 15th, which would make more sense. Although both ideas are unrealistic.
Nibroc, read before you post. This line of conversation stemmed from the proposed idea that people not drive for a day, not the OP. Go be an idiot somewhere else.
What? It's a "DO NOT PUMP GAS ON APRIL 15" NOTHING TO DO WITH DRIVING. People will still DRIVE on the 15th, they simply WONT BUY GAS. Meaning, they WILL buy gas on the 14th or 16th, depending on when they need it. Someone driving home on the 14th, remembers that the 15th is "don't buy gas day" so they get gas on their way home. Someone realizing their tank is low on the 15th, but wants to celebrate (is that the right word?) the "dont buy gas day", will drive home and buy gas the next day, april 16th.[QUOTE="Nibroc420"][QUOTE="coolbeans90"]
Nibroc, please learn to reason quantitatively. It really isn't that difficult. People do not drive for one day. K, now that we have this established, people consequently purchase a reduced amount of gasoline. This alters the profit margin per unit * quantity of units sold away from its peak. This in turn results in reduced profits.
Q.E.D.
Addendum: The stuff you brought up doesn't affect this.
SpartanMSU
I believe coolbeans proposed no driving instead of no buying gas on the 15th, which would make more sense. Although both ideas are unrealistic.
Of course they're both silly ideas, but one would actually put a momentary dent in profits.
[QUOTE="coolbeans90"][QUOTE="surrealnumber5"] assuming you can assume, as a no planner, i cant make those assumptions. with less volume i would guess the margins would need to increase to at all make the business profitable. without an adjustment in the margin with a large decrease in volume most stations would just go under. the margins on gas are tiny and its not like there are no fixed operating costs when it comes to gas stations, let alone the variable operational costs. im always going to argue against people who have the hubris to think they can project the actions of otherssurrealnumber5
You definitely can't assume that margins will increase enough to recuperate lost volume. Sure, they go up, but it can only go up so far before additional loss in volume matches the increased return per unit sold. The quantity sold deviates from the level of the maximum. I'm not arguing for the idea, but it would hit the pockets of gas stations.
acting as if stations are not already competitive. if stations could collude, as many Marxian would propose, gas would be much higher. the drive to undercut to get a larger share is common place. if the market took a considerable dip as you proposed gas prices would need a noticeable hike or alternative sources of revenue would need to be found. if i had to guess this would push out all gas stations(just gas), most market stations (snacks and gas) and would lead to a commanding dominance of liquor stations (booze and gas). that also assumes the proprietors wish to push other stations out and not that they would wish to compete on the margins with those stations that dont have other revenue sources, and that is in no way a safe assumption. I don't know what the market is like in your area, I just know the business end from those in the extended family that own stations and the three in my old college town I did taxes for. Hell in VA there may well be some sort of oligopolyOf course there would be collusion to raise prices, and to an extent, considering the inelasticity of gas in the short term, there would be profit recouperation, but in all likelyhood, some profits would be lost. We're talking about a one-day plunge here, so I don't think a consolidation of the liquor markets overnight would happen. (not to mention, commie scum have monopolized liquor sales in Va.)
Sorry i thought perhaps you were talking about this "Dont pump gas on April 15th 2012" idea. Seeing as how that is the title of the thread, and the topic put forth by the TC. There's even a nice picture in the original post in case you forget ;)Nibroc, read before you post. This line of conversation stemmed from the proposed idea that people not drive for a day, not the OP. Go be an idiot somewhere else.
coolbeans90
if it is just for a day then yea the effect would be blah, but starting a no driving movement(ironic) would hurt stations more than deferred purchase movement. im just saying station owners are not fat cat 1%ers or whatever OT rallies agaionst, and prolonged downturn would hurt everyone.... well except those doing the printing and causing the inflation that is. they will keep on keeping on and pointing the fingers at others.Nibroc, read before you post. This line of conversation stemmed from the proposed idea that people not drive for a day, not the OP. Go be an idiot somewhere else.
coolbeans90
[QUOTE="coolbeans90"]if it is just for a day then yea the effect would be blah, but starting a no driving movement(ironic) would hurt stations more than deferred purchase movement. im just saying station owners are not fat cat 1%ers or whatever OT rallies agaionst, and prolonged downturn would hurt everyone.... well except those doing the printing and causing the inflation that is. they will keep on keeping on and pointing the fingers at others.Nibroc, read before you post. This line of conversation stemmed from the proposed idea that people not drive for a day, not the OP. Go be an idiot somewhere else.
surrealnumber5
I'm not by any means supporting the idea and definitely wouldn't participate. I think it's idiotic. I'm just showing people how to be a slightly more effective in their metaphorical sticking it to the man. (which mightn't be a good idea, but, whatever)
acting as if stations are not already competitive. if stations could collude, as many Marxian would propose, gas would be much higher. the drive to undercut to get a larger share is common place. if the market took a considerable dip as you proposed gas prices would need a noticeable hike or alternative sources of revenue would need to be found. if i had to guess this would push out all gas stations(just gas), most market stations (snacks and gas) and would lead to a commanding dominance of liquor stations (booze and gas). that also assumes the proprietors wish to push other stations out and not that they would wish to compete on the margins with those stations that dont have other revenue sources, and that is in no way a safe assumption. I don't know what the market is like in your area, I just know the business end from those in the extended family that own stations and the three in my old college town I did taxes for. Hell in VA there may well be some sort of oligopoly[QUOTE="surrealnumber5"][QUOTE="coolbeans90"]
You definitely can't assume that margins will increase enough to recuperate lost volume. Sure, they go up, but it can only go up so far before additional loss in volume matches the increased return per unit sold. The quantity sold deviates from the level of the maximum. I'm not arguing for the idea, but it would hit the pockets of gas stations.
coolbeans90
Of course there would be collusion to raise prices, and to an extent, considering the inelasticity of gas in the short term, there would be profit recouperation, but in all likelyhood, some profits would be lost. We're talking about a one-day plunge here, so I don't think a consolidation of the liquor markets overnight would happen. (not to mention, commie scum have monopolized liquor sales in Va.)
yea i was thinking much longer effort , one day would not really matter if no one purchased a gallon, i would scare the hell out of speculators but it would do nothing to or for us, including the stations.stole my comment right from my mind. great minds think alike :)Don't pump gas on April 15th, so I do not have to wait in line.:P
roulettethedog
When American prices match the petrol prices in the UK, then we can talk. Until then you guys over the pond don't know what expensive fuel is.
yuri19
It's your own dumb fault for buying that fancy petrol stuff. Try buying gasoline next time, like we do. It's more affordable than petrol.
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