New Rant Thread

chazt

shave
I worked as a mechanic for about six years at an Exxon station, and a year at Gulf. The station didn't set the price, Exxon, or Gulf, would call and tell you what the new price was, and you were contractually bound to sell at that price. Sometimes you had to change the prices more that once in a day.

On the flip side, if you bought fuel at a high price and the company lowered the sale price guess who ate the loss? Hint, it wasn't Exxon or Gulf.
I see. So as I understand what you’ve presented in various posts, it’s the petroleum industry that operates sleazily. Not “all businesses,” just the one you're citing.
 

TobyC

Patriot
I see. So as I understand what you’ve presented in various posts, it’s the petroleum industry that operates sleazily. Not “all businesses,” just the one you're citing.
Selling to cover replacement cost isn't new, and small businesses would go bankrupt if they couldn't pass the cost to the customer.
 

TobyC

Patriot
Importance of Replacement Cost in Pricing
  • Profitability: Selling items at prices aligned with replacement costs helps maintain profitability. If prices are set too low, businesses may struggle to cover costs when replenishing inventory.
  • Sustainability: Integrating replacement cost into pricing strategies ensures that sales support both current profits and future operational stability. This approach helps businesses remain competitive, especially in fluctuating markets.
  • Margin Protection: Ignoring replacement costs can lead to margin erosion and cash flow issues. Businesses that account for these costs can better protect their financial health.
 

Twelvefret

Forum GOD!
If I purchase a house for $200k and in ten years the market has risen so that a comparable dwelling is now worth, $400k, am i greedy for taking advantage of the new market price?

Yes, price increases are inevitable and especially in volatile times and markets. Some stations here increased quickly while others didn’t. Apparently the prices are changing daily. Some stations only have the dollar amount showing.

Diesel full has escalated which will raise the price of everything.
 

chazt

shave
Selling to cover replacement cost isn't new, and small businesses would go bankrupt if they couldn't pass the cost to the customer.
Importance of Replacement Cost in Pricing
Ok, Googling, copying and pasting doesn’t really convince me of the “rightness” of your argument as it pertains to Steve’s original point. Nor does it extend the conversation. If that’s all you’ve got for me I have nothing else to talk about. I’ve made my point, you’ve made your’s. As with many interactions between people, it seems we’re just not on the same page. We’ll just each keep going round, making the same points. I’m gonna go shower and shave. Have a fun day! :cool:
 

R181

Grumpy old man
I think it is Markets, China is hungry for diesel and they will pay the sellers price.
Currently, that is likely so. Going back 50 odd years, diesel was cheaper than gasoline but that changed back then to the reverse. I saw that first in Germany and shortly after in Canada. I remain puzzled about that then and even more so now.

Bob
 

Paper Plane

Forum GOD!
Importance of Replacement Cost in Pricing
  • Profitability: Selling items at prices aligned with replacement costs helps maintain profitability. If prices are set too low, businesses may struggle to cover costs when replenishing inventory.
  • Sustainability: Integrating replacement cost into pricing strategies ensures that sales support both current profits and future operational stability. This approach helps businesses remain competitive, especially in fluctuating markets.
  • Margin Protection: Ignoring replacement costs can lead to margin erosion and cash flow issues. Businesses that account for these costs can better protect their financial health.
Replacement costs maybe. Their staff won’t have suddenly had a massive pay rise and their costs for premises won’t have doubled overnight. Therefore, how can a 100% increase in the price of the commodity be justified when it’s replacement is only one part of their costs?

steve
 

TobyC

Patriot
I'm referring to standard business practice, I can't speak for what any particular business is doing or why.
 

TobyC

Patriot
You can't sell something for what it WAS worth, nobody does that and survives, you sell it for what it is currently worth.
 
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