socialize_me
10-04-2008, 08:43 PM
..so many people are worried about arbitrary "price gouging" laws which distort markets and create shortages..well...here we got case where local gas stations compete for customers even to the point where the price is below the breakeven level for the owner just for the sake of competition and more customers (which generates revenue when they buy the "full" bag of potato chips that are half-plundered by sealed air).
http://www.ketv.com/cnn-news/17622431/detail.html
COUNCIL BLUFFS, Iowa -- A price war at two Council Bluffs gas stations had the businesses so busy that one ran out of fuel and drivers enjoyed prices well below $3 per gallon.
The owner of a Pump and Munch station near 25th Street and Avenue M lowered prices below the $3 mark Friday morning. He quickly ignited a fuel-price feud with another nearby station, Andrew's Lounge.
"I created havoc down here," said Pump and Munch owner Lyle Sinnott. "I was at home last night and decided I was going to be the first one in town below $3 a gallon."
Sinnott said he hoped his move would get people in the door because business has been slow.
Andrew's Lounge owner Kayla Gundy quickly followed suit.
"He came down, and I lowered it to $2.89," she said.
"I got ornery, and I matched it again at $2.89," Sinnott said.
Gundy said it isn't the first time her boss went pump to pump with Sinnott.
"It's not like they get out and fight and box or anything. It's like a small competition to see who can get the most business," she said.
"You've got to do what you've got to do," Sinnott said. "(Andrew's Lounge) came back with $2.82, and I'm going to stay where I'm at."
A Sinclair gas station across the street also lowered prices. Customers were the big winners.
"I got on the phone and began calling everybody, 'Gosh, get over here and fill up,'" said driver Billie Ottesen.
"With a big truck like I have, it sure helps me a lot," said driver Greg Rhodes.
"Hooray for Lyle," said driver Janet Lewis. "Keep it up."
Andrew's Lounge ran out of fuel late Friday. Sinnott said he'll keep his price at $2.89 all weekend.
"I'm not trying to get rich or anything," he said. "I just want to live and be comfortable."
Sinnott said he doesn't make money from gas sales, only when people come into his store to buy things. He said he's losing money on gas sales right now because he's selling it for a lower price than he paid for it.
http://www.ketv.com/cnn-news/17622431/detail.html
COUNCIL BLUFFS, Iowa -- A price war at two Council Bluffs gas stations had the businesses so busy that one ran out of fuel and drivers enjoyed prices well below $3 per gallon.
The owner of a Pump and Munch station near 25th Street and Avenue M lowered prices below the $3 mark Friday morning. He quickly ignited a fuel-price feud with another nearby station, Andrew's Lounge.
"I created havoc down here," said Pump and Munch owner Lyle Sinnott. "I was at home last night and decided I was going to be the first one in town below $3 a gallon."
Sinnott said he hoped his move would get people in the door because business has been slow.
Andrew's Lounge owner Kayla Gundy quickly followed suit.
"He came down, and I lowered it to $2.89," she said.
"I got ornery, and I matched it again at $2.89," Sinnott said.
Gundy said it isn't the first time her boss went pump to pump with Sinnott.
"It's not like they get out and fight and box or anything. It's like a small competition to see who can get the most business," she said.
"You've got to do what you've got to do," Sinnott said. "(Andrew's Lounge) came back with $2.82, and I'm going to stay where I'm at."
A Sinclair gas station across the street also lowered prices. Customers were the big winners.
"I got on the phone and began calling everybody, 'Gosh, get over here and fill up,'" said driver Billie Ottesen.
"With a big truck like I have, it sure helps me a lot," said driver Greg Rhodes.
"Hooray for Lyle," said driver Janet Lewis. "Keep it up."
Andrew's Lounge ran out of fuel late Friday. Sinnott said he'll keep his price at $2.89 all weekend.
"I'm not trying to get rich or anything," he said. "I just want to live and be comfortable."
Sinnott said he doesn't make money from gas sales, only when people come into his store to buy things. He said he's losing money on gas sales right now because he's selling it for a lower price than he paid for it.