[Az-Geocaching] Gas Prices

[Bill]

Well, I haven't made anyone mad at me yet today, so I may as well jump in here.  First, cost of
production is not the same in all parts of the country.  Wages vary from region to region, for
one thing.  Second, transportation costs are higher in some areas.  Most of the gasoline in
Phoenix comes through Tucson first.  More distance means more money, so gas is higher usually
in Phoenix.

Also, I am a believer in the free enterprise system.  Communism has been tried lots of places
and didn't do well.  Free enterprise is simple.  As a merchant, my job is to buy as cheaply as
I can and charge as much as I can get.  That's free enterprise.  All of you who work for a wage
practice it every day.  You want as much salary or hourly wage as you can get.  If you
currently make $15 an hour and someone offers you $25 an hour, I don't imagine you are going to
say, "Maybe I should turn it down, because I'm not worth that much."  Nope, you are worth as
much as you can get.  That's free enterprise.  Same with gas or any other product.  It is worth
whatever the merchant can get you to pay.

For every product there is a price point that maximizes profit.  As you raise the price, sales
drop while profit on each unit rises.  Raising prices will only increase total profit as long
as sales don't drop too much.  Somewhere is a magic number that puts the most dollars of profit
in your pocket.  If you are a merchant, that's what you should charge.

By the way, gasoline is imported from great distances, heavily regulated during processing,
shipping, and final delivery to the consumer, and still costs less than almost anything else.
Try to buy a gallon of soda, milk, orange juice, or even water for what you pay for gasoline.

Bill in Willcox

----- Original Message ----- 
From: "GUY ALDRICH" <graldrich@yahoo.com>


> On my trip to Ohio the average price was $1.35,we are
> being ripped off here!
>
> --- J H/TEAM 360 <team360wwg@yahoo.com> wrote:
> >
> > Gas in Albuquerque is only $1.38 :)
> >
> > WE ARE GETTING SO RIPPED OFF HERE IN AZ!