Monday, May 08, 2006

This is a TEST

I know Mondays are not days to have tests, but this e-mail really got me going today. Why? Well, I'll tell you later.... Here's how this works, read the below story, THEN it gives an assumption and suggestion at the end. It relates a story about eggs to gasoline. AFTER you have read this, please post to say whether this will work or not and why you think that. (I'll give you a hint: This is a trick question.) Anyway, here is the story:

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 dozen 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. He checked around for a better price and found that 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 huge egg farms, 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 huge 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 huge 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 huge 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 $2.95 a gallon and then the next morning it can be $2.75. If you have your tank full of $2.95 gas you don't have room for the $2.75 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.


I'll post later to tell you the answer and why spreading these types of things is a bad idea.

2 comments:

Tracy said...

Here's my 2 cents, even though it wouldn't get you much gas these days. We can't buy gas like that because unlike chickens, the huge gas companies will just stop producing and start laying off people. Those people could be our neighbors and I don't know about you but I'm not into causing my neighbor to loose his job. Just a thought.

Unknown said...

Almost forgot about this one. The answer to the test is this... It won't work. Chelsea gets the imaginary cookie.

The consumption is not going to change, just the number of visits to the store or gas station will change. You will also spend a lot more time shopping considering that there will be long lines of people buying gas.

The other thing is that if you don't buy the other things from the convenience stores, of which a lot more are part of grocery chains anyway, you will still purchase at the store AND cost you more time and inconvenience.

There will not be any problems with the gas stations or stores but more time will be consumed. NOT to mention, more gas as you go to 3 different places where one would do.

Anyway, WTG Chels!!!! You passed the test.