vraiblonde said:
Whatever you may have been trying to get across blew right over my head.
Well... what else is new.
Do you do any shopping Vrai, or does Larry do that? I ask because you seem to be clueless about how retail sales work. Most anything that is sold... food, electronics, clothes, jewelry, watches, pizza, etc., have multiple items that are priced at high and low price points, generally with a 35% to 45% price difference, but sometimes a lot more. Speaking of shoes, a consumer who can't afford a pair of $150 Nikes can afford a pair of $19 Starters, so the consumer's needs are being met. People who want to pay $2.99 for Wonder bread due to it's perceived quality can do that, and those who don't care about brand names can by store bread for .99 a loaf. Again, the consumer's needs are being met. Now, why is this happening? It's happening because people don't need bread or sneakers to get through their lives. So it's not enough for retailers to compete against similar stores, they also need to compete with needs vs. wants as well.
If gasoline were marketed and sold in the same manner as everything else is, gasoline at a Exxon would cost $2.80 today, and gasoline at an off-brand gas-station only operation would sell for say $1.79. Instead we've allowed gasoline producers to fuzzy up the retail sales picture by yelling about the cost of oil, which is a strictly arbitrary figure that's driven by speculators and not supply, cost of production, cost of shipping, etc. Look at Chevron. All of their oil comes from off the coast of Venezuela. None of it comes from anywhere near the Middle East, yet their products are sold at or near the exact same price as a heavy Middle East importer like Exxon. If gasoline were really fairly priced, the price of Venezuelan oil/gas that's shipped a short distance would be far less than the cost of products shipped from the volitile Middle East, yet all of the prices are the same within two or three cents.
Since there are no alternatives to gasoline there's no pressure on oil producers to keep retail costs down. Most people must have gasoline to make a living, so we'll buy it regardless of how much it costs. So when Exxon wants to jack up it's stock value 25 percent, they can just up the prices of its product because they know sales won't go down. And once Exxon ups it's prices, every other supplier and retailer ups their prices as well because there's no external consumer products for them to compete against.