According to WISN, the companies operating the nearby Shell and BP stations in Waukesha are suing Woodman’s, a local grocery chain, for damages of $80,000 each. They say that number is based on the number of days Woodman’s was illegally outpricing them.
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Who's responsible for setting high gas prices?
HOUSTON - Oil prices have moderated a bit since Russia's invasion of Ukraine, but gasoline prices have remained at near-record levels. For those who wonder why, it's because there's money to be made. Those profits though may not be going where you imagine.
Ran an Exxon service station for years that had a Shell station right across the street. Every now and then I would come in really early and drop my price 3 cents below theirs. It normally took that idiot until about 10am to figure out why he was selling only 25% of his usual volume.
ReplyDeleteWhat large companies were doing was moving into an area and selling gas below cost. Those would eventually push small gas stations in the area out of business. Then the large company had a monopoly and could charge however much they wished. Many states have similar laws that prevent selling gasoline below cost.
ReplyDeleteThe courts should then dismiss this case outright, since the letter of the law does not comport with its purpose.
DeleteI live in a subdivision close to an interstate highway. You can take the exit from the highway and drive perpendicular away from it. Gas prices drop the further away from the highway you get. Probably a 20 cent delta between highway exit and the furthermost station away.
ReplyDeleteFilled up at Costco today, 25 cents cheaper than the mom-n-pop place I filled up at yesterday. Apparently membership does have its perks.
I remember when collusion to set prices was illegal. Now I guess it's mandatory.
ReplyDeleteI live in Waukesha, but won’t get gas at Woodman’s or Costco because I’m not waiting 20+ minutes in line at the pumps just to save $2.00, not worth my time, those places are packed full and I’ve got better things to do than wait around all day. But they both are busy as hell.
ReplyDeleteThe Shell station across from Woodman’s gets trouble from the fact it’s only easy to access from one direction (otherwise, you have to go past and U-turn to get back to it, and people are too lazy to do it), the BP down the road that’s suing was a massive boondoggle that took a tiny, busy little station and turned it into a monstrosity that has changed hands twice since it did a 400% expansion a few years ago, car wash gets no business, and their truck wash even less, they’re always slow to begin with, I think they’re also just looking for money to float a barely-alive station at this point.
That's exactly what we desperately need right about the now....a GAS WAR! Remember those? Best price I ever saw was 19.9 cents for regular. Good thing it was so cheap back then (1968) since I could actually see the gas gauge creep toward "E" when I gave that '53 Olds V8 the onions!
ReplyDeleteI've been to a Woodman's some, not this one, and not recently. No credit cards accepted for gas; prepay, cash only. The grocery store was massive. It looks industrial, like a Sam's Club inside, but with as much selection as any grocery store. Lot's of products oriented toward rural customers, too. They seemed to know what their customers like.
ReplyDeleteGeek
My question is why are they suing Woodman's? Woodman's is only setting a price based on COSTCO. Oh I forgot COSTCO would eat you for lunch and shit you out an hour later!
ReplyDeleteWoodman's buys locally whenever possible...probably buying direct from the same fuel wholesaler the others use, but not paying the "chain station" upcharge for the franchise and additives.
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