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Topic: Hmmmm I wonder....:-/? (Read 985 times) |
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Redd
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Hmmmm I wonder....:-/?
« on: May 22nd, 2006, 2:08pm » |
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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 $1.00 a dozen. Again he asked the grocery owner why and was told, "cakes and baking for the holiday". The huge egg farmers know there will be a lot of baking going on and more eggs will be used. Hence, the price of eggs goes up. Expect the same thing at Christmas and other times when family cooking, baking, etc. happen.
This pattern continues un til the price of eggs is 2.00 a dozen. The man says,"there must be something we can do about the price of eggs".
He starts talking to all the people in his town and they decide to stop buying eggs. This didn't work because everyone needed eggs. Finally, the man suggested only buying what you need.
He ate 2 eggs a day. On the way home from work he would stop at the grocery and buy two eggs. Everyone in town started buying 2 or 3 eggs a day.
The grocery store owner began complaining that he had too many eggs in his cooler. He told the distributor that he didn't need any eggs. Maybe wouldn't need any all week.
The distributor had eggs piling up at his warehouse. He told the huge egg farms that he didn't have any room for eggs would not need any for at least two weeks.
At the egg farm, the chickens just kept on laying eggs.
To relieve the pressure, the huge egg farm told the distributor that they could buy the eggs at a lower price. The distributor said, " I don't have the room for the %$&^*&% 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 dro pping. 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..
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echo
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Re: Hmmmm I wonder....:-/?
« Reply #1 on: May 22nd, 2006, 2:21pm » |
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Hmmmmmmm
Might work.
good point about having room in your tank for cheaper gas. Still amazes me how the price per gallon can jump around like it does. It will definately go up for next weekends holiday travel.
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imnotbub
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Re: Hmmmm I wonder....:-/?
« Reply #2 on: May 22nd, 2006, 2:47pm » |
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I think this may work, in theory, but wouldn't it create longer lines at the pump? Twice as many people buying gas every day. Whatcha think?
Steve
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Redd
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Re: Hmmmm I wonder....:-/?
« Reply #3 on: May 22nd, 2006, 3:05pm » |
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I don't think there would be any lines anywhere, in fact if we are only putting in 10 bucks at a time, it would be faster at the pump as well.
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thomas
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Re: Hmmmm I wonder....:-/?
« Reply #4 on: May 22nd, 2006, 3:15pm » |
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on May 22nd, 2006, 2:47pm, imnotbub wrote:I think this may work, in theory, but wouldn't it create longer lines at the pump? Twice as many people buying gas every day. Whatcha think?
Steve |
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Twice? Try 5-10 times. Most people buy guys once or twice a week, if we did it daily the traffic at stations would increase from 5-10 times daily.
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Tom K
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Re: Hmmmm I wonder....:-/?
« Reply #5 on: May 22nd, 2006, 3:16pm » |
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While this would seem all well and good, gas doesn't spoil, for the most part, like eggs would. Additionally, $10 in gas is only around 3.5 gallons. You would be filling up way more than twice a week. It works on paper but in real life, not so much.
Now if we, as a country, cut our usage 3%, we wouldn't have as much foreign oil coming in and the price would drop. Or, take crude oil off the commodities market. Butter and butter fat was put on the commodities market 5 years ago and the price went through the roof for everything, butter, baked goods, even ice cream. The price fluctuates with the market, not the seasons, ie; Christmas, Thanksgiving.
Just some food,  , for thought...
PS and BTW, just found this... http://www.snopes.com/politics/gasoline/eggs.asp
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| « Last Edit: May 22nd, 2006, 3:23pm by Tom K » |
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Re: Hmmmm I wonder....:-/?
« Reply #6 on: May 22nd, 2006, 3:36pm » |
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If gas stations don't make enough money selling other stuff, wouldn't it follow that they will raise the price of gas to make up for it. Consumption will go down for a short amount of time but then be right back where it was later (after they have raised the prices).
Honestly, the egg scenario is COMPLETELY different. People don't NEED eggs, they NEED gas.
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BobG
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Re: Hmmmm I wonder....:-/?
« Reply #7 on: May 22nd, 2006, 3:42pm » |
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It sounds good in theory. But, it is flawed.
If you buy only $10 at a time but continues to drive the same amount of miles you will only be spending more time pumping gas. If you "need" $30 each week you'll have to buy 3 times a week instead of once.
The only way it would work is to buy the $10 and then cut the miles down to where you only "need" $10 worth.
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floridian
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Re: Hmmmm I wonder....:-/?
« Reply #8 on: May 22nd, 2006, 3:45pm » |
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Won't work. If Joe used to buy all his gas at Citgo, and now only buys half, that is negated by Fred, who used to buy all his gas at Exxon, but now buys half at Citgo.
The only way to reduce demand is to reduce demand.
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Melissa
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Re: Hmmmm I wonder....:-/?
« Reply #9 on: May 22nd, 2006, 3:58pm » |
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on May 22nd, 2006, 3:15pm, thomas wrote:
Most people buy guys once or twice a week |
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And the name of this store that stocks such a commodity would be?
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JeffB
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Re: Hmmmm I wonder....:-/?
« Reply #10 on: May 22nd, 2006, 4:11pm » |
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How about throwing eggs at oil traders everyday. It's those fockers who set the prices. This has been coming for years, they have been conditioning us for this, get used to it!...........
Did someone hear a bell?
Pavlov
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Re: Hmmmm I wonder....:-/?
« Reply #11 on: May 22nd, 2006, 4:15pm » |
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http://www.local6.com/news/9252125/detail.html
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Re: Hmmmm I wonder....:-/?
« Reply #12 on: May 22nd, 2006, 4:24pm » |
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on May 22nd, 2006, 4:15pm, Jonny wrote:
THATS GREAT
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Carl_D
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Re: Hmmmm I wonder....:-/?
« Reply #13 on: May 22nd, 2006, 7:48pm » |
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on May 22nd, 2006, 3:15pm, thomas wrote:
Twice? Try 5-10 times. Most people buy guys once or twice a week, if we did it daily the traffic at stations would increase from 5-10 times daily. |
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Now TELL me that was a typo please!
ROTFLMMFAO!
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Re: Hmmmm I wonder....:-/?
« Reply #14 on: May 22nd, 2006, 8:07pm » |
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on May 22nd, 2006, 7:48pm, Carl_D wrote:
Now TELL me that was a typo please!
ROTFLMMFAO!
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Re: Hmmmm I wonder....:-/?
« Reply #15 on: May 22nd, 2006, 8:09pm » |
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on May 22nd, 2006, 4:15pm, Jonny wrote:
The way things are now I'd be happy paying $2.79
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I can't believe that I have to bang my
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But the blows they have just a little more
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Gonna take a breath and try again.
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Re: Hmmmm I wonder....:-/?
« Reply #16 on: May 22nd, 2006, 8:10pm » |
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on May 22nd, 2006, 8:09pm, E-Double wrote:
The way things are now I'd be happy paying $2.79 |
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Then youll probably hate me when I tell you that I have not paid for gas in well over a decade.....LOL
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It is up to YOU to educate yourself and then help your doctor plan your treatment. If you just sit down in front of your doctor and say "make me better" you are setting yourself up for a great deal of pain.
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Re: Hmmmm I wonder....:-/?
« Reply #17 on: May 22nd, 2006, 8:12pm » |
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on May 22nd, 2006, 8:10pm, Jonny wrote:
Then youll probably hate me when I tell you that I have not paid for gas in well over a decade.....LOL
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I can't believe that I have to bang my
Head against this wall again
But the blows they have just a little more
Space in-between them
Gonna take a breath and try again.
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Re: Hmmmm I wonder....:-/?
« Reply #18 on: May 22nd, 2006, 8:14pm » |
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LMMFAO....E-Dude.....LOL
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It is up to YOU to educate yourself and then help your doctor plan your treatment. If you just sit down in front of your doctor and say "make me better" you are setting yourself up for a great deal of pain.
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Re: Hmmmm I wonder....:-/?
« Reply #19 on: May 22nd, 2006, 8:42pm » |
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If they buys eggs 2 or three at a time instead of by the dozen they are still buying the same amount of eggs. The3 man who eats 2 eggs a day doesn't eat less he just buys them every day instead of once a week. There is no change in demand, just a change in demand for full dozen verses single egg sales. Of course all that would need to be done is to make eggs salable by the full dozen as is the case now. The only real way for the people to reduce the price of eggs while still using them would be to raise there own chickens. Of course this would raise the price of chicken feed accordingly.
If I bought $10 of gas everyday instead of $20 every 2 days I would see a slight savings with the vehicle carrying less weight but that would be offset by the cost of driving to the gas station everyday, and the extra wear on the vehicle from using the brakes and the extra engine start.
There is no way to break a Monopoly, in this case OPEC, unless you live without what they control. Don't buy any eggs, don't use any oil products.
More realistic would be to break a monopoly where the need isn't actually there. For example if we all stopped buying new computers with Microsoft Windows preinstalled and upgrades for Microsoft Windows for used computers, and instead bought Apple Macs with OS X installed, or computers built from parts with GNU/Linux installed, or upgrade used computers with GNU/Linux we could all break the unnecessary monopoly of Microsoft Windows operating systems.
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tommyD
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Re: Hmmmm I wonder....:-/?
« Reply #20 on: May 23rd, 2006, 6:46am » |
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Want the price of gas to come down?
Buy a bicycle. Walk to work. Carpool. Trade in your SUV. (After all, why do you need a three-ton, eight-cylinder, four-wheel drive, high-ground clearance vehicle to drive down to the grocery store?)
These little boycott tricks - buying half a tank, buying a certain brand, buying on this day but not on that - are just that: little. They have little or no effect on overall demand, and only serve as a distraction. Only an actual, long-term reduction in consumption will make a difference.
But you can use less, starting immediately: this morning, on your way to work, SLOW THE FUCK DOWN!
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BarbaraD
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Re: Hmmmm I wonder....:-/?
« Reply #21 on: May 23rd, 2006, 7:04am » |
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I'm not sure how it works, but I have a client who runs his truck on PEANUT OIL. Really! When he starts the darn thing it smells like someone would ask you if you want catshup with your fries, but the truck runs fine and it only costs him very little. He has a fish place where he gets their "used" peanut oil in 50 gallon drums.
There's something on the net that tells how to convert your vehicle to peanut oil...
This might work.
Hugs BD
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floridian
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Re: Hmmmm I wonder....:-/?
« Reply #22 on: May 23rd, 2006, 7:18am » |
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Peanut oil (or any vegetable oil) can be used in a modified diesel engine. It makes sense to keep adding biodiesel vehicles to a point. Right now, fast food joints treat used oil like a waste, so its good to use it. But eventually, if the number of biodiesel cars and trucks increases, they will compete with each other for that resource. Fresh vegetable oil still costs more than regular diesel oil, so we can't convert everyone. But it may shave a few points off our petrochemical dependency.
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DonnaHar
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Re: Hmmmm I wonder....:-/?
« Reply #23 on: May 23rd, 2006, 8:33am » |
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How many of you have access to mass public transportation? Do you use busses?
We do not have bus service here in Englewood, and larger cities in this part of Florida have very limited service.
When I was a young wife, we didn't have a car for awhile. Shopping was done by bus.....getting to work was over an hour bus ride and in the winter it depended on how deep the snow was.
If it was available, I certainly would be using it.
Edited to make note that the above mentioned snow was in Cleveland, Ohio.
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| « Last Edit: May 23rd, 2006, 8:35am by DonnaHar » |
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deltadarlin
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Re: Hmmmm I wonder....:-/?
« Reply #24 on: May 23rd, 2006, 12:05pm » |
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on May 23rd, 2006, 6:46am, tommyD wrote:Want the price of gas to come down?
Buy a bicycle. Walk to work. Carpool. -tommyD |
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Hmm, don't think your suggestions will work for me. I travel apprx. 2500 miles a month, all work related. I literally cover the north half of Louisiana. Don't think I could bicycle to the places I need to be. Can't carpool either, noone to carpool with. Walk? Don't think so.
If you live in the city, public transportation is okay. If you live in the country, the only *public* transportation you might find is everybody piled into the back of the pickup truck or pulling a trailer with the tractor.
The only way to decrease the price of oil/gas is to decrease our dependance on it (or start drilling in numerous places in the US and that is still only a temporary fix).
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