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Gas station owner told to raise prices WTF!!
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Gas station owner told to raise prices WTF!! - May 9, 2007, 12:35 PM

Gas station owner told to raise prices Wed May 9, 6:05 AM ET


A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices.
Center City BP owner Raj Bhandari has been offering senior citizens a 2 cent per gallon price break and discount cards that let sports boosters pay 3 cents less per gallon.
But the state Department of Agriculture, Trade and Consumer Protection says those deals violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price.
Bhandari said he received a letter from the state auditor last month saying the state would sue him if he did not raise his prices. The state could penalize him for each discounted gallon he sold, with the fine determined by a judge.
Bhandari, who bought the station a year ago, said he worries customers will think he stopped the discounts because he wants to make more money. About 10 percent of his customers had used the discount cards.
Dale Van Camp said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.





Thats some BS
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May 9, 2007, 12:43 PM

+1


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May 9, 2007, 01:05 PM

Good. Just because you've got one foot in the box doesn't mean you should get things at a reduced rate. Greatest generation my ass. Tom Brokaw's a punk.



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May 9, 2007, 01:08 PM

shouldnt you be dangling by your feet over some railing somewhere? ^^


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May 9, 2007, 01:26 PM

Ok heres my theory on this. You have Bill Gates a small gas station. Then sells gas for $0.50 per gallon. Yes he looses money however, in the long run he will make that money back by buying the other shops around him at a lower cost. Sorry thats life
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May 9, 2007, 01:31 PM

it's gonna go up anyway. Now is as good of a time as ever....


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May 9, 2007, 01:47 PM

Quote:
Originally Posted by ArRrR6
Ok heres my theory on this. You have Bill Gates a small gas station. Then sells gas for $0.50 per gallon. Yes he looses money however, in the long run he will make that money back by buying the other shops around him at a lower cost. Sorry thats life
Umm that only applies if you are selling a product at a loss to force other (smaller) competitors out of the market. Since he was still making a profit, it's bullshit.


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May 9, 2007, 01:48 PM

Quote:
Originally Posted by spud
shouldnt you be dangling by your feet over some railing somewhere? ^^
Yep, then I threw Chip's war medals off the bridge.


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May 9, 2007, 02:16 PM

Quote:
Originally Posted by ArRrR6
Ok heres my theory on this. You have Bill Gates a small gas station. Then sells gas for $0.50 per gallon. Yes he looses money however, in the long run he will make that money back by buying the other shops around him at a lower cost. Sorry thats life
Uhm, no that's actually illegal.


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May 9, 2007, 06:28 PM

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Originally Posted by DvlsAdvc8
Uhm, no that's actually illegal.
It is happening right now. Example: Comcast offers the "triple play" for $99 for one year. In the last 14 months they have over 2.1 Million subs forcing other telcos to sell it at a lower cost. Well after the 1 year is done the price is jacks up and then they raise the fees on you taxes and international calls. Yes Comcast has taken a loss but will make up that loss in a bit after these deals are done with.
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May 9, 2007, 10:21 PM

$99 for one year. That is an incentive. The important point is that it is temporary - comcast can offer temporary incentives to switch, even at a loss, hoping that customers switch to them and then are unwilling to switch back after the incentive ends.

What they aren't doing is continuing to operate at a loss, with knowledge that they will outlast their competition... or abusing market dominance, monopoly, or near monopoly - as Standard Oil did back in the day - that is: raising prices in areas where you have eliminated your competition in order to balance operating at a loss in areas where you face stiff competition.

That sort of predatory pricing is illegal. Additionally, if they are misrepresenting their fees as taxes, that is also in fact illegal.


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