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Claims to have done this to conserve stock but more likely as a publicity stunt and a bit of free advertising. You apparently get £24 off next MOT if you buy any. I'd be more concerned with garages who have maybe put 10 or 20 pence on per litre when supply is tight which may not be noticed quite as much by the panicky motorist as they fill up.
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Supply and demand.
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So assuming people remember the £9 gallon from this garage, when supplies are back to normal, demand could possibly fall from this garage as people are free to take their business anywhere....
Edited by a900ss (S-Max) on 17/06/2008 at 10:18
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.>> So assuming people remember the £9 gallon from this garage when supplies are back tonormal demand could possibly fall from this garage as people are free to take their business anywhere....
Not at all. From the BBC: Nearly 600 petrol stations in Devon and Cornwall ran out of supplies on the final day of an industrial dispute by tanker drivers over pay
I know one petrol station that has acted to preserve its stocks, where I can guarantee I shall always be able to fill up. Very sensible to harbour stocks carefully. Price is much the best method of rationing.
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When supplies are back to normal, locals should maks a point of boycotting this garage to the point where it goes out of business.
They won't of course, but it would be great if they did and sent out a warning to anyone considering doing the same in the future.
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locals should maks a point of boycotting this garage to the point where it goes out of business.
By doing so, the "locals" would in fact be doing two things.
1. ensuring that they have to travel further to buy the fuel they need, as they would not be able to buy it locally.
2. by helping the owner join the growing number of forecourts closing down, they would be doing the owner a favour - as he would find that the value realised from the sale of his site is far greater when sold on as a non-petrol forecourt, and he can move on to some other sales with a better margin.
These type of posts [Robin Reliant, a900ss, etc.] demonstrate that in Britain the anti-business attitude is rife, probably as a result of years of living in a nanny state depending on state handouts and state control. I wonder how many people realise that the electricity they consume everyday is bought by the National Grid company bidding for marginal power supplies - sometimes at huge multiples of the "normal" prices in order to keep the juice flowing at times of peak demand.
spot prices for electricity:
www.bmreports.com/servlet/com.logica.neta.bwp_Stat...T
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Whether or not this guy made a good or bad business decision is one thing. I guess there are arguments for and against.
However, to throw another thought in the pot, for all those who now wish him ill. If you think he is guilty of not supporting or standing by his local community and should in some way be punished for that, just take a few minutes to consider your own actions. Take a look at the labels on your goods. Did you buy clothes and shoes produced in Britain? Did you buy them from a local or at least British owned business? Did you conciously try to buy a UK produced car? Is the food in your fridge of British origin? Did you buy it from the local shop? ( if it is still there ) Where did your wine or beer come from? Where do you spend your holidays? See what I mean?
He was looking after No.1, same as everyone else. Great pity, but unfortunately that is how life is now.
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He was looking after No.1 same as everyone else. Great pity but unfortunately that is how life is now.
Exactly.
So let's all look after No.1 by sending a message out to other garage owners that if they profiteer at our expense during a shortage we will make sure they can't do it again.
Free markets work both ways.
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I really am not seeking to make a judgement or express an opinion on whether this was right or wrong or indeed whether group retaliation is the appropriate response. What I am saddened by is how succinctly this whole sorry affair reflects our society's current values and councelling against a knee-jerk response. Or as it was anciently and far more concisely put " let he who is without sin cast the first stone " Anyway, if it makes people feel better, cast away. Who cares, it's too late in any event.
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Shoespy - I agree entirely.
It is not as if people have never seen demand led pricing. It has been around on the railways for years - for example, a off peak day-return ticket often costing less than half of two singles. This pricing model is also used extensively by airlines such as Ryanair and Easyjet. The difference between the cheapest and the most expensive seats on the same flight can be huge for the same seat depending on the demand.
This pricing model is now being tested by a London car park.
www.autoindustry.co.uk/news/10-06-08
"The Queensway car park in Westminster will charge commuter just 20p an hour when the 250 capacity car park is empty; however as it fills up the price will increase to a maximum of £2 an hour."
No one has been howling that the car park should be blacklisted or that it is profiteering when the charge rises to £2 from 20p !
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Well jbif, I'm not sure you've fully considered this.
By doing so, the "locals" would in fact be doing two things.
1. ensuring that they have to travel further to buy the fuel they need, as they would not be able to buy it locally.
Why? Couldn't another buyer of the garage run it as a garage? Nothing to say it can't be sold as a garage even if the curreny owner goes out of business. In fact, if it is a 'local' garage with few others nearby it will be a positive selling point.
2. by helping the owner join the growing number of forecourts closing down, they would be doing the owner a favour - as he would find that the value realised from the sale of his site is far greater when sold on as a non-petrol forecourt, and he can move on to some other sales with a better margin.
What better value? De-commissioning a fuel station site & making it appropriate for other business (let alone residential developement) purposes is very expensive. Factor in the slump of property prices in general & commercial property in particluar, and there isn't a compelling (or even sensible) case for this.
These type of posts [Robin Reliant, a900ss, etc.] demonstrate that in Britain the anti-business attitude is rife, probably as a result of years of living in a nanny state depending on state handouts and state control.
Eh? Why does complaining about exceptional pricing strategies somehow qualify you for a 'Red Robbo' tag - in every area of consumerism & business purchase seeking out best-price is the cornerstone of a successful & healthy capitalist system. The garage owner made his play - it will probably be counter-productive in the long run - that's life & capitalism I'm afraid.
I wonder how many people realise that the electricity they consume everyday is bought by the National Grid company bidding for marginal power supplies - sometimes at huge multiples of the "normal" prices in order to keep the juice flowing at times of peak demand.
Even if true - it's vastly different to local price spiking by an individual enterprise. Any extra cost for marginal electricity supply is diluted amongst millions (probably) of consumers - not foisted upon a few poor individuals who live near the power station. The true cost of 'spot prices' is to lower the overall on-line capacity needs of the power company - if you can buy the (exceptional) ocassional extra supply it saves the cost of building & running an under utilised power station.
No, the owner made a poor business decision in my opinion. Irrespective of any dispassionate analysis by strict supply-demand economics, the owner will be seen by his customer base as having profited excessively by his actions - we will see if they vote with their 'feet' on this, but I guess they will.
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Nothing to say it can't be sold as a garage
If the punters have deserted that site, why should they come back just because while driving by they see a sign "under new management"? It could just be the same old management hiding behind a sign?
What better value? ... and there isn't a compelling (or even sensible) case for this.
So you say. The link I posted in another thread says that the economics are different.
Even if true
Easy to check that it is indeed true if you were bothered.
No, the owner made a poor business decision in my opinion.
You are entitled to it.
we will see if they vote with their 'feet' on this, but I guess they will.
Your guess is as good as mine.
OK, now I have to get back to motoring.
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>> Nothing to say it can't be sold as a garage
If the punters have deserted that site, why should they come back just because while driving by they see a sign "under new management"? It could just be the same old management hiding behind a sign?
Happens all the time - and successfully too. If it was previous owner 'hiding behind a sign' as you put, I'm sure in a small or locally based business this ruse would soon be spilled!
>> What better value? ... and there isn't a compelling (or even sensible) case for this.
So you say. The link I posted in another thread says that the economics are different.
If the argument (or link to it) isn't on this page, I can hardly address it can I? I address the post, as posted.
Easy to check that it is indeed true if you were bothered.
My substantive point didn't dispute it - the paragraph started 'Even if' because I hadn't verified it myself & assumed you were correct. Why not address the subsequent argument?
OK, now I have to get back to motoring.
!?
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