For the past several weeks, as I drive into work, I always get stopped by the same red light where there are two gas stations across the street from each other.
The one full serve gas station has a gallon of regular gas at $ 2.99 a gallon and the other self serve gas station is at $ 2.73 a gallon. The $ 2.99 gas station is always empty, while the $ 2.73 gas station always has a long line of people willing to wait for an available pump.
The question I have for the owner of the full service station is how do you expect to stay in business? There were still lights on in the place and an attendant inside. What kind of gas do you think you are selling that you feel people are going to pay 26 cents more? Magical gas?
This owner needs an economics lesson in the law of Supply & Demand. If the consumer(myself and most of you) can get the same quality product for a cheaper price. Which one would you pick?
This past Friday I noticed the sign for the $ 2.99 gas station was taken down and nobody inside.
It seems the Law of Supply & Demand still holds true.
Now, I will wait for the gas station still in business to go to $ 2.99 a gallon.
Supply & Demand.