Re: Stupid People - Page 6

 
They'll be at a competetive advantage, of course, if they simply DROP
the $00.9 and undersell their neighbor by 9/10ths of a cent per
gallon.  And they'll be better of than if they had dropped the price
by a whole cnt, too.

 


That makes the assumption, though, that a suffiiciently
high percentage of customers will notice the $0.009
difference so as to buy YOUR gas (as opposed to the
other guy's - i.e., they actually notice something beyond
the first few digits) so as to make up for the lower revenues.
Dropping the full cent ensures that even those who check
only the first three figures see that you have a lower
price as well, and costs you just $0.001 additional.  Hard
to tell, unless you have some really good data on the buying
habits of the general public in this regard (and I have to think
that the gasoline retailers DO have that data) which is the
best option.

Bob M.

 
Think of the money to be saved on gas station SIGNAGE!!!!

 On Sun, 15 Jun 2008 08:05:52 -0400, "St. John Smythe"


Yebbut...
<pedantic Krusty history lesson mode on>
In the old days, there was a gas station on at least 3 corners of
every intersection. You'd get to the corner looking for the cheapest
gas and see the signs, all ending in 9/10ths. You'd choose based on
the signs you saw.
<pKhlm off>
Today, with only 10-20% of the stations still standing, you only see
one sign and not another for the next mile. There is no competitive
advantage to the 9/10ths any more.

--
Turby the Turbosurfer

 

There are four kinds of people in this world.

The first group makes things happen, while the second group watches
things happen. The third group wonders what happened, and the fourth
group never noticed that anything happened at all.