by Tyler_JC » Thu 19 Jun 2008, 21:40:55
$this->bbcode_second_pass_quote('alokin', 'F')unny - one of the first things of the modern society which crashes...
What about savings cards? Is this the same fraud?
This has nothing to do with society crashing.
It has to do with the economics of the gas station business.
When gasoline was $1.50, people were willing to pay $1.60 if they have to.
Now that gasoline is $4.00. People are willing to pay $4.10 if they have to.
The problem is that that dime has moved from 6.6% in extra profit to only 2.5%.
Credit card fees didn't change, profit margins did.
Now the people selling gas for $4.00 are selling at a loss and they can't raise their prices because their neighbors are still selling for $4.00.
Everyone is waiting everyone else out.
Eventually enough gas stations will shut down that each station will act as a semi-monopoly. They can't charge more than it costs to drive to the next station.
But the modern model of 4 stations in a 200 foot radius is insanity.
How many times have you seen two gas stations across the street from each other charging different prices?
The cheap station can only survive if it can make up the difference in terms of food/beverage sales.
Credit card fees and competition are creating a perfect storm that will wipe out a large number of the over 150,000 gas stations in the United States.