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9/22/2017 12:11:25 AM
Posted: 8/29/2005 12:53:35 PM EDT
Blow me dupe nazis. Don't know if its been posted before, and I don't care. Others may not have seen it.

How feasible is this scenario with gas?

Everyone should read this and send it on!
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 $1.00 a dozen. Again he asked the grocery owner
why and was told, "cakes and baking for the holiday".
The huge egg farmers know there will be a lot of
baking going on and more eggs will be used. Hence, the
price of eggs goes up.
Expect the same thing at Christmas and other times
when family cooking, baking, etc.happen.
This pattern continues until the price of eggs is 2.00
a dozen. The man says,"there must be something we can
do about the price of eggs".
He starts talking to all the people in his town and
they decide to stop buying eggs. This didn't work
because everyone needed eggs.
Finally, the man suggested only buying what you need.
He ate 2 eggs a day. On the way home from work he
would stop at the grocery and buy two eggs. Everyone
in town started buying 2 or 3 eggs a day.
The grocery store owner began complaining that he had
too many eggs in his cooler. He told the distributor
that he didn't need any eggs. Maybe wouldn't need any
all week.
The distributor had eggs piling up at his warehouse.
He told the huge egg farms that he didn't have any
room for eggs would not need any for at least two
weeks.
At the egg farm, the chickens just kept on laying
eggs.
To relieve the pressure, the huge egg farm told the
distributor that they could buy the eggs at a lower
price. The distributor said, " I don't have the room for
the %$&^*&% 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 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.

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..
Link Posted: 8/29/2005 12:59:45 PM EDT
You know
it's hard
to read
a
post when the person
cutting and
pasting it neglects
to reformat it.

Anyway, I couldn't read the whole thing - is this one of those Donuts for Jesus stories?
Link Posted: 8/29/2005 12:59:53 PM EDT
My dad use to work at an egg distributor. Don't want to know what on there
Link Posted: 8/29/2005 1:00:53 PM EDT

Originally Posted By Dolomite:
You know
it's hard
to read
a
post when the person
cutting and
pasting it neglects
to reformat it.

Anyway, I couldn't read the whole thing - is this one of those Donuts for Jesus stories?



Sorry bout that. Too much to reformat. And no, its not about donuts or jesus.
Link Posted: 8/29/2005 1:02:51 PM EDT
So what if the dude only buys 2 and then he family shows up for breakfast? Hes screwed!!

Same anthology put to gas... Half tank or lower and you have an emergency.. Your fusked..
Link Posted: 8/29/2005 1:03:21 PM EDT
[Last Edit: 8/29/2005 1:06:19 PM EDT by DzlBenz]
The thrust of this over-wrought fable is to practice market-timing to somehow hedge that the price of gasoline will go down next time you fill upattempt to affect the price of oil by only buying small amounts of gasoline at one time. This is a flawed view on so many levels, I won't even begin to enumerate them. I don't know why the writer of this crap couldn't just say so. It's like he had to try to get a whole Reader's Digest article out of a single synapse.

Please don't cut and paste shit from your email spam.

Edited because I had to read that hacked-up shit again. Sorry. The post IS about Jesus, too. It makes the Baby Jesus cry when you post crap like this.
Link Posted: 8/29/2005 1:04:52 PM EDT
WTF?


I don't see how buying less at each time would accomplish anything because at the end of the week the gas station would have still sold the same amount of gas anyway.

If I put in 10 gallons twice a week or 20 gallons once, it's the same thing.

The egg idea is exactly the same too, 20 people buying 3 eggs a day is the same thing as the same 20 people buying buying 2 dozen a week.


Link Posted: 8/29/2005 1:07:00 PM EDT

Originally Posted By DzlBenz:
The thrust of this over-wrought fable is to practice market-timing to somehow hedge that the price of gasoline will go down next time you fill up. I don't know why the writer of this crap couldn't just say so. It's like he had to try to get a whole Reader's Digest article out of a single synapse.

Please don't cut and paste shit from your email spam.



Link Posted: 8/29/2005 1:07:07 PM EDT
What you fail to mention:

The egg company made the same amount off 2-3 eggs at high prices, as they did off 12 eggs at low prices.

...and they got to kill a bunch of surplus hens and sell them to KFC.

They got richer, and you still got fucked.
Link Posted: 8/29/2005 1:10:38 PM EDT
Link Posted: 8/29/2005 1:10:59 PM EDT
Hens lay eggs all the time and can't be turned off (OK, they can be turned off one time, but can't be turned back on). Oil refineries can be turned off and people that operate them layed off. It's also dependent on a small homogenious market where the purchasers can collorate to change purchase patterns.

This analogy does not work. There is a difference between eggs and oil.

R.
Link Posted: 8/29/2005 1:11:56 PM EDT

Originally Posted By The_Beer_Slayer:
chickens won't stop laying eggs.

gas companies CAN shut down refineries to keep the cost high and supply low.



Dang, I was typing when you posted. However, Sir, I believe you are a correct.

R.
Link Posted: 8/29/2005 1:13:18 PM EDT

Originally Posted By freemanesq:
There is a difference between eggs and oil.

I was about to say that eggs and oil don't mix, but they actually do!

(Vegetable oil, that is!)

Link Posted: 8/29/2005 1:18:16 PM EDT
This is quite possibly the dumbest analogy I have ever seen.
Link Posted: 8/29/2005 1:19:38 PM EDT
The egg anology is messed up in that all the sultans have to do is quit pumping. If there was a drastic shortage the product would go to the highest bidder. You can usally count on greed but most third world despots have money and don't give a shit about their people.
Link Posted: 8/29/2005 1:22:01 PM EDT
There are so many things wrong with the theory it's incredible.

#1 If the price of eggs by the dozen went up in price, the single egg price would as well, and would be even more since the single price is surely higher than they would be by the dozen.
#2 Buying 2 dozen eggs every week is the same amount as 3 everyday, the distributor would still sell the same amount of eggs.
#3 The only way to effect prices is to actually use a lot less or stop using it all together, using the same amount over time but just in smaller quantities achieves nothing.
#4 Last but not certainly not least, you would actually use MORE gas to go to the store everyday then to go once a week. So even if you lowered the price of eggs, you'd raise the price of gas because you and everybody else were using more of it.
Link Posted: 8/29/2005 1:24:57 PM EDT
Oh yeah, and to answer the question "How feasible is this?" It isn't.
Link Posted: 8/29/2005 1:26:29 PM EDT

Originally Posted By Dolomite:

I couldn't read the whole thing -

Link Posted: 8/29/2005 1:28:23 PM EDT
[Last Edit: 8/29/2005 1:29:25 PM EDT by Gloftoe]
Link Posted: 8/29/2005 1:30:12 PM EDT

Originally Posted By NewbHunter:
This is quite possibly the dumbest analogy I have ever seen.


I'm a little upset I read the whole thing. Why someone actually took the time to type this out is beyond me. Why dont we all just write letters to the oil companies politely asking them to lower their prices, as its about as realistic as this fairy tale.
Link Posted: 8/29/2005 1:44:17 PM EDT
I get it!!!



... We need to invent a car that runs on eggs.
Link Posted: 8/29/2005 1:56:11 PM EDT
The problem with the "buy less at a time" and "boycott one day" is that the CONSUMPTION is a bigger determinant of price than frequency of purchase. The only thing that these practices do is increase the CONSUMERS cost. I don't want to go to the store more often, it burns my gas and my time.

The key is to change the consumption habit. Over the last 6-12 weeks I have cut my gas bill nearly in half. This habit works with other consumables too. Shrimp goes up, Mrs. SHooter and I eat something besides shrimp cocktail. Beef goes up we eat pork. Problem is that at nearly $3 a gallon very few people have changed their driving habits (or vehicle selection), because in reality it doesn't hurt that bad. Most people are still putting a fairly modest percent of total income into their gas tank.

Shooter
Link Posted: 8/29/2005 2:03:43 PM EDT
Also, gas doesn't go bad like eggs do. What would work is if people would start using bikes or walking to work if they lived close enough or take the bus or train instead of having all of these single car drivers on the streets. I road a bike to work when I lived in Tempe, AZ. I worked at Motorola in Chandlder, AZ. It was a 22 mile round trip and since I worked 2nd shift it was nice riding back home at midnight, the temp. was cool and there was hardly any traffic.
I wished we still lived in small communities like they did back at the turn of the century where everyone could walk to work, that'd take a bite out of their profits from selling their over priced gas.
Link Posted: 8/29/2005 2:19:25 PM EDT
I suppose the best way for people to do something similar to this with gas is to fill up their tanks and then only buy 2 dollars worth a gas every other day [or how often they need it].

Patty
Link Posted: 8/29/2005 2:22:40 PM EDT
[Last Edit: 8/29/2005 2:28:36 PM EDT by freemanesq]

Originally Posted By Xtremhigh:
Blow me dupe nazis.



Looks like the dupe nazis could have saved you from a beating from the "logic police."

R.
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