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General BS forum I guess this will be for anything that would seem to be off topic in any other forum here. Just general shootin' the breeze kind of topics.

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Unread 05-28-2006, 01:09 AM   #1
Rich Z
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Default The price of eggs....

I got the following email which I thought was interesting:

Quote:
Subject: The Price of Eggs....

This is a good thought and it could work. It won't cost anything to try. Think about it !!

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.

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.

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.

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".

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, no cigarettes, no bread, milk or chewing gum, don't give them any more of your hard earned money than what you spend on gas, until the prices come down.. Oh, some folks may not see this message. Can you afford to print 10 at a time and pass them out where you buy gas? If
you can afford more, you may think of putting them on windshields at the mall.

Everyone should read this and send.
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Unread 05-28-2006, 10:54 AM   #2
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That sounds good in theory but I'm not sure it's practical with prices where they are now. At roughly $3/gal, $10 = a little over 3 gal of gas. I probably use more than that in a single day. That means that, depending on how much is in my tank now and how much driving I have to do, I could potentially be buying gas 3 - 4 times a week. That's $30-$40 a week, about what it costs me to fill up my tank each week now. If prices were down in the mid $2 range, so that your $10 would go further, it might work. Math was never my strong subject so maybe I'm looking at this the wrong way.
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Unread 05-28-2006, 11:25 AM   #3
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Actually I seriously doubt this would work. Matter of fact, back in the early 80s when the gasoline crisis was taking place, the solution to the long lines at the gas stations was to require a MINIMUM purchase to stop people from pulling in to only guy a couple of gallons to top off their tanks at every opportunity. And the only reason that worked is because the gas stations made it mandatory. In other words, if you only got two gallons of gas, you STILL paid $10 (that was back when gasoline was something like 70 cents per gallon). If it had required the voluntary compliance of the population, it most certainly would have failed.
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Unread 05-29-2006, 12:15 PM   #4
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Good theory. The oil companies/countries don't need America anymore. China and India, amongst others will take all the oil they can get.
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Unread 05-29-2006, 01:59 PM   #5
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Quote:
Originally Posted by Melsy
Good theory. The oil companies/countries don't need America anymore. China and India, amongst others will take all the oil they can get.
Well, yeah, that's the way it works. That's why GM dealers can charge a surcharge over the MSR price of the C6 Z06. Because they can get it.

Oil is a non renewable resource. When it is gone, it is gone. If the world does not prepare for that time, we will ALL be in a world of hurt. And the supply is all based on speculation. Many wells have run dry before they thought they would. Suppose they ALL run dry way early? What then? There are a whole slew of weak links in that chain we call "civilization".
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Unread 05-29-2006, 05:48 PM   #6
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I read somewhere that one of the mideast oil countries (maybe Saudi) is already having to pump huge quantities of water into their wells to force up the remaining oil in order to meet quotas. A sign of the not so distant future? Who knows.
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