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Gas Prices and chickens connection

Topic closed. 2 replies. Last post 11 years ago by ryanm.

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Maryland
United States
Member #35590
March 20, 2006
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Posted: May 24, 2006, 2:47 pm - IP Logged

I think you might find the following interesting....found in on ABC's website:

This makes a lot of sense~ read to the end!!
A man eats two eggs each morning for breakfast. When he goes to the grocery store he pays .60 cents a dozen. Since a dozen eggs won't last a week he normally buys two dozens at ! a time

One day while buying eggs he notices that the price has risen to 72 cents. The next time he buys groceries, eggs are .76 cents a dozen. When asked to explain the price of eggs the store owner says, "the price has gone up and I have to raise my price accordingly".

This store buys 100 dozen eggs a day. I checked around for a better price and all the distributors have raised their prices. The distributors have begun to buy from the huge egg farms. The small egg farms have been driven out of business.

The huge egg farms sells 100,000 dozen eggs a day to distributors. Wit! h no competition, they can set the price as they see fit. The distributors then have to raise their prices to the grocery stores. And on and on and on. As the man kept buying eggs the price kept going up. He saw the big egg trucks delivering 100 dozen eggs each day. Nothing changed there.

He checked out the huge egg farms and found they were selling 100,000 dozen eggs to the distributors daily. Nothing had changed but the price of eggs.

The week before Thanksgiving the price of eggs shot up to $1.00 a d ozen. Again he asked the grocery owner why and was told, "cakes and baking for the holiday". The huge egg farmers know there will be a lot of baking going on and m ore eggs will be used. Hence, the price of eggs goes up. Expect the same thing at Christmas and other times when family cooking, baking, etc. happen.
This pattern continues until the price of eggs is 2.00 a dozen. The man says,"there must be something we can do about the price of eggs".
He starts talking to all the people in his town and they decide to stop buying eggs. This didn't work because everyone needed eggs. Finally, the man suggested only buying what you need.

He ate 2 eggs a day. On the way home from work he would stop at the grocery and buy two eggs. Everyone in town started buying 2 or 3 eggs a day.

The grocery store owner began complaining that he had too many eggs in his cooler. He told the distributor that he didn't need any eggs. Maybe would n't need any all week.
The distributor had eggs piling up at his warehouse. He told the huge egg farms that he didn't have any room for eggs would not need any for at least two weeks.

At the egg farm, the chickens just kept on laying eggs.

To relieve the pressure, the huge egg farm told the distributor that they could buy the eggs at a lower price. The distributor said, " I don't have the room for the %$&^*&% eggs even if they were free" .

The distributor told the grocery store owner that he would lower the price of the eggs if the store would start buying again. The grocery store owner said, "I don't have room for more eggs. The customers are only buy 2 or 3 eggs at a time". "Now if you were to drop the price of eggs back down to the original price, the customers would start buying by the dozen again".
The distributors sent that proposal to the huge egg farmers. They liked the price they were getting for their eggs but, them chickens just kept on

Finally, the egg farmers lowered the price of their eggs. But only a few cents. The customers still bought 2 or 3 eggs at a time. They said, "when the price of eggs gets down to where it was before, we will start buying by the dozen. "
Slowly the price of eggs started dro pping. The distributors had to slash their prices to make room for the eggs coming from the egg farmers. The egg farmers cut their prices because the distributors wouldn't buy at a higher price than they were selling eggs for.

Anyway, they had full warehouses and wouldn't need eggs for quite a while.

And them chickens kept on laying.

Eventually, the egg farmers cut their prices b! ecause they were throwing away eggs they couldn't sell. The distributors started buying again because the eggs were priced to where the stores could afford to sell them at the lower price.

And the customers starting buying by the dozen again.

Now, transpose this analogy to the gasoline industry.

What if everyone only bought $10.00 worth of gas each time they pulled to the pump. The dealers tanks would stay semi full all the time. The dealers wouldn't have room for the gas coming from the huge tank farms. The tank farms wouldn't have room for the gas coming from the refining plants. And the refining plants wouldn't have room for the oil being off loaded from the huge tankers coming from the Middle East.

Just $10.00 each time you buy gas. Don't fill it up. You may have to stop for gas twice a week but, the price should come down.

Think about it.

As an added note..! .When I buy $10.00 worth of gas,that leaves my tank a little under half full. The way prices are jumping around, you can buy gas for $2.65 a gallon and then the next morning it can be $2.15. If you have your tank full of $2.65 gas you don't have room for the $2.15 gas. You might not understand the economics of only buying two eggs at a time but, you can't buy cheaper gas if your tank is full of the high priced stuff.

Also, don't buy anything else at the gas station, don't give them any more of your hard earned money than what you spend on gas, until the prices come down..

 

** Everyone should read this and send it on!

 

Here was a reply to the above by another comsumer....

I enjoyed the above egg story. The truth is the huge chicken farmer will start shooting chickens in an effort not to have to feed excess mouths as well as throw away bulging inventory........ welcome to "LEAN 101".

I do believe that we can keep gas pump prices in check if we take things a step farther than 'buy just what you need' theory. If everyone will park "All" their vehicles for just one day per week, we could create an immediate +10% increase in the available inventory volume, then the buy what you need theory would keep it in check.

 

 

Now if only we could get together and get this done.Group Hug


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    Posted: May 24, 2006, 3:01 pm - IP Logged

    Unfortunately that won't work with gas. I've said this before in another place here at the LP.

    When gas stations say no to more gas delivery because no one is buying, the gas just gets re-distributed to other places like china, where they are using alot. Unless the whole world was boycotting, there is no way it would work.

    The only people you're hurting is the gas station owner, who relies on people to not only buy gas, but also the food and drinks that a person might buy when they come in to pay for the gas.

    The other people you have to blame are the crude oil companies overseas, and the traders here on our land. Everytime the traders (commodity) hear the slightest alarm from the news media about a crisis in Iran or elsewhere, they panic and the price goes up.


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    Quote pacattack05Report Inappropriate ContentTop of pagePosted: May 3, 2006, 11:56 pm - IP Logged

    I'm in no way defending the gas companies, but they only make 7 to 8 cents out of each dollar. It's the oil companies and the government that makes the money.

    Out of every dollar spent on gas, about 50 percent or so go to the oil companies. About 25 percent goes into storing, refining, and shipping the gas, by the gas companies. 18 percent goes to the govt. for taxes. And the remaining 7 cents goes to the net profit for the gas companies.

    You people ain't seen nothin yet. Every time some news story that comes out over the middle east crisis prices of crude oil rises. Especially with the possibility of war with Iran looming around the corner. If we go to war with Iran, the price of oil could skyrocket to anywhere from $100.00 to $150.00 a barrel. You think you have problems now?

    Today, the price of oil climbed to $75.00 a barrel because of the 911 terrorist on trial. He got life instead of the death penalty. That was totally lame. Now, he's gonna request "halal" food, write to his cronies from jail, demand his prayer rug, and the list goes on.

    Michael Savage is totally correct. Liberalism is a mental disorder. And they will bring this great country down.

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      Morrison, IL
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      Posted: May 24, 2006, 7:37 pm - IP Logged

      Yep, the only way to cause a sharp decline in oil prices is for the whole world to boycott gasoline. Even the mighty United States is no match for the whole world. If everyone in the United States just stopped buying gasoline (if that were possible), the only thing that would happen would be another great depression.