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Old 06-04-2008, 08:15 PM
 
Location: Pinal County, Arizona
25,100 posts, read 39,276,353 times
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Quote:
Originally Posted by anywherebutpinellas View Post
If one gas station in each town dropped their price by 10 cents, then the others would follow suit, because they wouldn't want to lose all the business. This could continue on indefinitely - it's called gas wars and we've been there before.

Come on, stations - try it! I know I'd go where the price was lowest.
The problem with your idea is: A) Their per gallon proift margin is very low - single digit - if they dropped it .10 cents, they would be upside down - losing money. B) Depending upon the contract with their supplier, they may not be able to drop the price without permission.
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