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Article #11071Re: high gasoline prices was Re: ATM fees are about to rise substantially
From: Joe St. Lucas
Date: Sat, 20 Apr 1996 00:00
Date: Sat, 20 Apr 1996 00:00
40 lines
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2760 bytes
> : }e.g. a gasoline pump owner at your corner has a 12,000 gallon storage > : }tank and this serves them fine as their weekly sales are 10,000 > : }gallons and they recive a shipment every week. however, on labor > : }day weekend the demand goes to 15,000 gallons a week. do yuo really > : }expect the pump owner to install extra storage tanks to meet > : }one week's peak demand and still stay in business? > but when the demand for tankers double, what do you think happens? > say you own a tanker company with 15 trucks and 25 drivers, > and have a clientele of 150 gas stations. all your trucks > operate on average for 12 hours a day and make 150 deliveries > a day. > > now, suddenly i need to make 300 deliveries a day ( i assume the all > my customers are like your gas station) > > how do i - as a tanker company meet the demand? But things like increased gas shipments are fairly known, aren't they? I mean, around memorial day, labor day, july 4th, etc., so it's something that a guy out to make a profit can anticipate and profit from, doing whatever dealing to get more shipments, no matter what it takes. > your local power utility for example. they have capacity to meet > not only increased late afternoon demand, but to meet it on the > hottest day in the year. on the rare occassion when it's the hottest > day of the decade, their installed capacity will be insuffecient to > meet demand. Utilities are usually granted a monopoly in an area, so they better have the capacity, except on those three-sigma hot/cold days. I can always go to another gas station that has gas, IF I want to pay a higher price. I can't get another utility company to pump electricity down my wires if the one doesn't perform. -- Joe St. Lucas jstlucas@znet.com Work is something to keep me busy between ultimate frisbee games.
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: 11474a,88496eaf4440a9ba X-Google-Attributes: gid11474a,public X-Google-Thread: f6c48,88496eaf4440a9ba X-Google-Attributes: gidf6c48,public X-Google-Thread: 107518,88496eaf4440a9ba X-Google-Attributes: gid107518,public X-Google-Thread: 101049,88496eaf4440a9ba X-Google-Attributes: gid101049,public From: "Joe St. Lucas" <jstlucas@znet.com> Subject: Re: high gasoline prices was Re: ATM fees are about to rise substantially Date: 1996/04/20 Message-ID: <31791FEB.5F23@znet.com> X-Deja-AN: 150523917 references: <4l3e60$nuc@netnews.upenn.edu> <4l61qd$87n@wanda.phl.pond.com> <4l8mh2$np@netnews.upenn.edu> content-type: text/plain; charset=us-ascii organization: None mime-version: 1.0 newsgroups: misc.consumers,misc.consumers.frugal-living,alt.consumers.experiences,dc.general x-mailer: Mozilla 2.0 (Win95; I)