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Article #11071

Re: high gasoline prices was Re: ATM fees are about to rise substantially

#11071
From: Joe St. Lucas
Date: Sat, 20 Apr 1996 00:00
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> : }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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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>
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