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TJ[_3_]

wrote:
Last night I saw gas for $6.00/gallon but I thought it was a good
thing for the station owner. The station was a quickie type market
where they do not make much profit on gas sales and mostly rely on gas
sales to bring in customers to the store. If he sold all his gas at a
reasonable price, he would have no more customers for his store.
Dissuading people from buying a lot makes his supply last longer and
so he will have customers for his store. I think he is being
reasonable.

It's not "gouging" unless his customers are somehow forced to buy gas
from him. As long as they have a choice, he can charge $20 a gallon if
he wants to. It also depends on his expenses. There is no law that I
know of that compels somebody to sell at a loss.

One of the things I do for a living is sell sweet corn. Right now, my
corn is $3 a dozen. I have a lot of corn ready, and if I don't sell it,
I'll lose money on things like fuel and fertilizer that I used to grow
it. The guy down the street is selling his for $3.75. Is he gouging?
Nope. His big rush of corn was last week, and he doesn't have as much
right now. He also has a mortgage that I don't have, adding to his
expenses. He is charging what he needs to to turn a profit. He's not
gouging.

Now, if we both got together and decided to charge $6 a dozen, we'd be
gouging. We'd also soon be out of business, because we wouldn't sell
enough to cover our fixed expenses. Price gouging is extremely bad for
business.

TJ