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Old 05-02-2006, 07:41 AM   #1
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Another email

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.

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.


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.

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".


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.
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Old 05-02-2006, 08:32 AM   #2
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Re: Another email

good analogy, except that gas doesn't go bad during storage like eggs do... it can be stored indefinitely

so it wouldn't work
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Old 05-02-2006, 08:49 AM   #3
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Re: Another email

You're still using just as much gas if you put 5 gallons in twice a week or 10 gallons once a week. Won't make any difference, besides making you stop twice as often.
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Old 05-02-2006, 09:01 AM   #4
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Re: Another email

Quote:
except that gas doesn't go bad
It could. If not, you'd never see bad gas that has been sitting in a car for a long time.


The trick to this whole gas thing is just stop taking joys rides and using as much. Only go where you need to go.
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Old 05-02-2006, 09:48 AM   #5
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Re: Another email

I think its funy that before the whole Katrina fiasco, the refineries were supposively at 99% capacity, yet when 20% of our refined supply was removed, the demand for gasoline was still met. So whats the deal? Are the rifernies now up to 119% capacity?

You know needs to happen for gas prices to come down? Its not buying 10 bucks at a time... its convincing all the liberal tree huggers that REFINERIES need to be built in the US. We have no problem getting oil... the oil isnt the concern, its the refined gas that we have to import so much of. On top of that, each state has its own standards for the gasoline... so it makes buying that refined gas that much more difficult. If we would have built some refineries since the 70's, I could almost guaruntee gasoline wouldnt have reached 2.00/gallon yet.
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Old 05-02-2006, 11:56 AM   #6
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Re: Another email

I gotta agree with Ya !! We could use some of the closed down bases to build refineries on
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Old 05-03-2006, 02:15 AM   #7
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Re: Another email

lol that wouldn't work for me being that i use about $10-$15 a day.
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Old 05-03-2006, 02:31 AM   #8
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Re: Another email

You know what pisses me off?

Celebs aren't doing **** about gas prices.

I know what you're thinking, "Wtf can they do?" Well, rallying against those companies is at least something. I mean celebs ***** about politics and crap like that, but when you see it doesn't matter what gas prices are to them, then they are a part of the problem when it comes to gas prices rising.

They have this insanely expensive cars and SUV's and pay whatever because they can afford it with no problem. But GOD FORBID if the president raises the sales tax or any **** like that. Even though we are at war, none of this affects them. But if gas prices go up and affects them, they don't do ****.

just amazing.
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Old 05-04-2006, 10:37 AM   #9
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Re: Another email

Quote:
Originally Posted by MarkuzLS1
You're still using just as much gas if you put 5 gallons in twice a week or 10 gallons once a week. Won't make any difference, besides making you stop twice as often.
That is exactly what I was thinking.
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Old 05-04-2006, 11:04 AM   #10
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Re: Another email

Quote:
Originally Posted by Seph
You know what pisses me off?

Celebs aren't doing **** about gas prices.

I know what you're thinking, "Wtf can they do?" Well, rallying against those companies is at least something. I mean celebs ***** about politics and crap like that, but when you see it doesn't matter what gas prices are to them, then they are a part of the problem when it comes to gas prices rising.

They have this insanely expensive cars and SUV's and pay whatever because they can afford it with no problem. But GOD FORBID if the president raises the sales tax or any **** like that. Even though we are at war, none of this affects them. But if gas prices go up and affects them, they don't do ****.

just amazing.
hit the nail on the head with the last paragraph. plus all those fancy cars they have, only get driven maybe a hour or two once a month, theyre shouferred around the rest of the time.
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Old 05-04-2006, 11:45 AM   #11
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Re: Another email

it would only work if you could slow the need for gas delivery and even then it wont matter. 10 bucks only gets me though a day (joking)
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