beeper*71
This space for rent
A man eats two eggs each morning for breakfast. When
he goes to the grocery store he pays .60 cents a
dozen. Since a dozen eggs won't last a week he
normally buys two dozens at a time.
One day while buying eggs he notices that the price
has risen to 72 cents. The next time he buys
groceries, eggs are .76 cents a dozen. When asked to
explain the price of eggs the store owner says, "the
price has gone up and I have to raise my price
accordingly".
This store buys 100 dozen eggs a day. I checked around
for a better price and all the distributors have
raised their prices. The distributors have begun to
buy from the huge egg farms. The small egg farms have
been driven out of business.
The huge egg farms sells 100,000 dozen eggs a day to
distributors. With no competition, they can set the
price as they see fit. The distributors then have to
raise their prices to the grocery stores. And on and
on and on. As the man kept buying eggs the price kept
going up. He saw the big egg trucks delivering 100
dozen eggs each day. Nothing changed there.
He checked out the huge egg farms and found they were
selling 100,000 dozen eggs to the distributors daily.
Nothing had changed but the price of eggs.
Then week before Thanksgiving the price of eggs shot
up to $1.00 a dozen. Again he asked the grocery owner
why and was told, "cakes and baking for the holiday".
The huge egg farmers know there will be a lot of
baking going on and more eggs will be used. Hence, the
price of eggs goes up. Expect the same thing at
Christmas and other times when family cooking, baking,
etc. happen. This pattern continues until the price of
eggs is 2.00 a dozen.
The man says,"there must be something we can do about
the price of eggs". He starts talking to all the
people in his town and they decide to stop buying
eggs. This didn't work because everyone needed eggs.
Finally, the man suggested only buying what you need.
He ate 2 eggs a day. On the way home from work he
would stop at the grocery and buy two eggs. Everyone
in town started buying 2 or 3 eggs a day.
The grocery store owner began complaining that he had
too many eggs in his cooler. He told the distributor
that he didn't need any eggs. Maybe wouldn't need any
all week.
The distributor had eggs piling up at his warehouse.
He told the huge egg farms that he didn't have any
room for eggs would not need any for at least two
weeks. At the egg farm, the chickens just kept on
laying eggs.
To relieve the pressure, the huge egg farm told the
distributor that they could buy the eggs at a lower
price. The distributor said, " I don't have the room
for the %$&^*&% eggs even if they were free".
The distributor told the grocery store owner that he
would lower the price of the eggs if the store would
start buying again. The grocery store owner said, "I
don't have room for more eggs. The customers are only
buy 2 or 3 eggs at a time". "Now if you were to drop
the price of eggs back down to the original price, the
customers would start buying by the dozen again".
The distributors sent that proposal to the huge egg
farmers. They liked the price they were getting for
their eggs but, them chickens just kept on laying.
Finally, the egg farmers lowered the price of their
eggs. But only a few cents. The customers still bought
2 or 3 eggs at a time. They said, "when the price of
eggs gets down to where it was before, we will start
buying by the dozen."
Slowly the price of eggs started dropping. The
distributors had to slash their prices to make room
for the eggs coming from the egg farmers. The egg
farmers cut their prices because the distributors
wouldn't buy at a higher price than they were selling
eggs for.
Anyway, they had full warehouses and wouldn't need
eggs for quite a while. And them chickens kept on
laying.
Eventually, the egg farmers cut their prices because
they were throwing away eggs they couldn't sell. The
distributors started buying again because the eggs
were priced to where the stores could afford to sell
them at the lower price.
And the customers starting buying by the dozen again.
Now, transpose this analogy to the gasoline industry.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
What if everyone only bought $10.00 worth of gas each
time they pulled to the pump. The dealers tanks would
stay semi full all the time. The dealers wouldn't have
room for the gas coming from the huge tank farms. The
tank farms wouldn't have room for the gas coming from
the refining plants. And the refining plants wouldn't
have room for the oil being off loaded from the huge
tankers coming from the Middle East.
Just $10.00 each time you buy gas. Don't fill it up.
You may have to stop for gas twice a week but, the
price should come down.
Think about it.
As an added note...When I buy $10.00 worth of gas,that
leaves my tank a little under half full. The way
prices are jumping around, you can buy gas for $2.65 a
gallon and then the next morning it can be $2.15. If
you have your tank full of $2.65 gas you don't have
room for the $2.15 gas. You might not understand the
economics of only buying two eggs at a time but, you
can't buy cheaper gas if your tank is full of the high
priced stuff.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Also, don't buy anything else at the gas station,
don't give them any more of your hard earned money
than what you spend on gas, until the prices come
down..
he goes to the grocery store he pays .60 cents a
dozen. Since a dozen eggs won't last a week he
normally buys two dozens at a time.
One day while buying eggs he notices that the price
has risen to 72 cents. The next time he buys
groceries, eggs are .76 cents a dozen. When asked to
explain the price of eggs the store owner says, "the
price has gone up and I have to raise my price
accordingly".
This store buys 100 dozen eggs a day. I checked around
for a better price and all the distributors have
raised their prices. The distributors have begun to
buy from the huge egg farms. The small egg farms have
been driven out of business.
The huge egg farms sells 100,000 dozen eggs a day to
distributors. With no competition, they can set the
price as they see fit. The distributors then have to
raise their prices to the grocery stores. And on and
on and on. As the man kept buying eggs the price kept
going up. He saw the big egg trucks delivering 100
dozen eggs each day. Nothing changed there.
He checked out the huge egg farms and found they were
selling 100,000 dozen eggs to the distributors daily.
Nothing had changed but the price of eggs.
Then week before Thanksgiving the price of eggs shot
up to $1.00 a dozen. Again he asked the grocery owner
why and was told, "cakes and baking for the holiday".
The huge egg farmers know there will be a lot of
baking going on and more eggs will be used. Hence, the
price of eggs goes up. Expect the same thing at
Christmas and other times when family cooking, baking,
etc. happen. This pattern continues until the price of
eggs is 2.00 a dozen.
The man says,"there must be something we can do about
the price of eggs". He starts talking to all the
people in his town and they decide to stop buying
eggs. This didn't work because everyone needed eggs.
Finally, the man suggested only buying what you need.
He ate 2 eggs a day. On the way home from work he
would stop at the grocery and buy two eggs. Everyone
in town started buying 2 or 3 eggs a day.
The grocery store owner began complaining that he had
too many eggs in his cooler. He told the distributor
that he didn't need any eggs. Maybe wouldn't need any
all week.
The distributor had eggs piling up at his warehouse.
He told the huge egg farms that he didn't have any
room for eggs would not need any for at least two
weeks. At the egg farm, the chickens just kept on
laying eggs.
To relieve the pressure, the huge egg farm told the
distributor that they could buy the eggs at a lower
price. The distributor said, " I don't have the room
for the %$&^*&% eggs even if they were free".
The distributor told the grocery store owner that he
would lower the price of the eggs if the store would
start buying again. The grocery store owner said, "I
don't have room for more eggs. The customers are only
buy 2 or 3 eggs at a time". "Now if you were to drop
the price of eggs back down to the original price, the
customers would start buying by the dozen again".
The distributors sent that proposal to the huge egg
farmers. They liked the price they were getting for
their eggs but, them chickens just kept on laying.
Finally, the egg farmers lowered the price of their
eggs. But only a few cents. The customers still bought
2 or 3 eggs at a time. They said, "when the price of
eggs gets down to where it was before, we will start
buying by the dozen."
Slowly the price of eggs started dropping. The
distributors had to slash their prices to make room
for the eggs coming from the egg farmers. The egg
farmers cut their prices because the distributors
wouldn't buy at a higher price than they were selling
eggs for.
Anyway, they had full warehouses and wouldn't need
eggs for quite a while. And them chickens kept on
laying.
Eventually, the egg farmers cut their prices because
they were throwing away eggs they couldn't sell. The
distributors started buying again because the eggs
were priced to where the stores could afford to sell
them at the lower price.
And the customers starting buying by the dozen again.
Now, transpose this analogy to the gasoline industry.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
What if everyone only bought $10.00 worth of gas each
time they pulled to the pump. The dealers tanks would
stay semi full all the time. The dealers wouldn't have
room for the gas coming from the huge tank farms. The
tank farms wouldn't have room for the gas coming from
the refining plants. And the refining plants wouldn't
have room for the oil being off loaded from the huge
tankers coming from the Middle East.
Just $10.00 each time you buy gas. Don't fill it up.
You may have to stop for gas twice a week but, the
price should come down.
Think about it.
As an added note...When I buy $10.00 worth of gas,that
leaves my tank a little under half full. The way
prices are jumping around, you can buy gas for $2.65 a
gallon and then the next morning it can be $2.15. If
you have your tank full of $2.65 gas you don't have
room for the $2.15 gas. You might not understand the
economics of only buying two eggs at a time but, you
can't buy cheaper gas if your tank is full of the high
priced stuff.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Also, don't buy anything else at the gas station,
don't give them any more of your hard earned money
than what you spend on gas, until the prices come
down..
I usually put in $20 to get me half a tank not because of that reasoning but because it's all I can afford.
