More sneaky than that. Don't raise prices to customers who can vote with their feet - change toc's for workers an sub contractors who are desparate for work!
$this->bbcode_second_pass_quote('pstarr', '')$this->bbcode_second_pass_quote('Repent', ' ')I think most companies will externalize their costs and let someone else suffer the increase in expenses, before they will raise prices and suffer reduced sales and profits.
What do you mean 'externalize their cost'? Isn't that the same as 'raise prices'?
PeakOil is You
What's the most you could afford to pay for a gallon of gas?
Re: What's the most you could afford to pay for a gallon of
by Quinny » Sat 15 Feb 2014, 16:50:27
Live, Love, Learn, Leave Legacy.....oh and have a Laugh while you're doing it!
-
Quinny - Intermediate Crude
- Posts: 3337
- Joined: Thu 03 Jul 2008, 03:00:00
Re: What's the most you could afford to pay for a gallon of
by Rod_Cloutier » Sat 15 Feb 2014, 18:25:15
$this->bbcode_second_pass_quote('', 'e')xternalize their cost'
No, when companies use outside contractors or sub-contractors, under contract, in the short term price increases for fuel can be offloaded onto the contractors. In the longer term the contracts have to be renegotiated, at which time costs will then rise. There is a built in delay between when short term prices go up and when the companies have to come to terms with the increase. (There can still be strikes, work stoppages, and other problems if the contractors can't absorb the losses, as was the case in 2007-2008).
- Rod_Cloutier
- Heavy Crude
- Posts: 1448
- Joined: Fri 20 Aug 2004, 03:00:00
- Location: Winnipeg, Canada
Re: What's the most you could afford to pay for a gallon of
by h2 » Sat 15 Feb 2014, 20:49:04
It's an oddly worded question, since most people use their cars in ways that can be modified, and would be, by higher fuel prices, so it's more of how much less would you use at price x or y.
I've spent $17.50 roughly this year, and if it had been about 6 a gallon instead of 4, I probably would have taken amtrack instead, maybe it would have to be 7.
I believe at 7 many americans will seriously reduce their mileage, and kick in another recession as the money they would have spent at the store they drove to instead goes to gas.
10 is probably the major cutoff, at that point, you really cannot drive SUVs or big pickups any more, actually even smaller ones that get low mileage, particularly in town, like the toyotas, would be pretty expensive to drive in town. I always have to laugh when i watch the gas charges at gas stations on big vehicles, the idea of tossing out 100 dollar bills in order to get some feeling or other I think is going to look less attractive as it approaches 200 a fillup, at that point you're talking close to a 1000 a month to keep driving a stupid big vehicle that handles like a tank, but for smaller cars, that have good engines, and are actually fun to drive, I think the cutoff would be a lot higher for people. 10 to go 40 miles or so is just not that much money in any real sense, SF to LA would be about 80, which is really basically nothing if you have a good car with good mileage, but with a big suv or pickup, it would be pretty serious in terms of costs.
However, you can see if you lived in Europe that people just are more careful with where they drive and how, they don't stop paying at 10 or 12, they just do it less, but those prices kept the Euro cities I lived in packed with cars, no parking, etc, so obviously the perceived convenience of driving, which seems like more habit that reality in many, but not all, cases, tends to overcome any price considerations, but not long term, long term behaviors change.
I've spent $17.50 roughly this year, and if it had been about 6 a gallon instead of 4, I probably would have taken amtrack instead, maybe it would have to be 7.
I believe at 7 many americans will seriously reduce their mileage, and kick in another recession as the money they would have spent at the store they drove to instead goes to gas.
10 is probably the major cutoff, at that point, you really cannot drive SUVs or big pickups any more, actually even smaller ones that get low mileage, particularly in town, like the toyotas, would be pretty expensive to drive in town. I always have to laugh when i watch the gas charges at gas stations on big vehicles, the idea of tossing out 100 dollar bills in order to get some feeling or other I think is going to look less attractive as it approaches 200 a fillup, at that point you're talking close to a 1000 a month to keep driving a stupid big vehicle that handles like a tank, but for smaller cars, that have good engines, and are actually fun to drive, I think the cutoff would be a lot higher for people. 10 to go 40 miles or so is just not that much money in any real sense, SF to LA would be about 80, which is really basically nothing if you have a good car with good mileage, but with a big suv or pickup, it would be pretty serious in terms of costs.
However, you can see if you lived in Europe that people just are more careful with where they drive and how, they don't stop paying at 10 or 12, they just do it less, but those prices kept the Euro cities I lived in packed with cars, no parking, etc, so obviously the perceived convenience of driving, which seems like more habit that reality in many, but not all, cases, tends to overcome any price considerations, but not long term, long term behaviors change.
- h2
- Peat
- Posts: 111
- Joined: Fri 31 May 2013, 16:15:15
Re: What's the most you could afford to pay for a gallon of
by pasttense » Sat 15 Feb 2014, 21:29:13
$this->bbcode_second_pass_quote('pstarr', '
')This is where the oil-price index becomes a useful term. If more than 4% of GDP is absorbed by the petroleum pump (manufacturing/lifting/refining/delivering) then not enough energy is left to lift the consumer and his basic needs off the ground. That is $100/barrel. I believe Pops refers to this as the oil-price ceiling
')This is where the oil-price index becomes a useful term. If more than 4% of GDP is absorbed by the petroleum pump (manufacturing/lifting/refining/delivering) then not enough energy is left to lift the consumer and his basic needs off the ground. That is $100/barrel. I believe Pops refers to this as the oil-price ceiling
Currently the health care system costs over 17% of GNP. I don't see why oil prices couldn't reach this level. People would simply cut lower priority stuff.
-
pasttense - Peat
- Posts: 50
- Joined: Sat 14 Jun 2008, 03:00:00
