Eggs and Gas

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.
With 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.

Then week before Thanksgiving the price of eggs shot up to $1.00 a
dozen. 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 more 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 wouldn'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 laying. 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 dropping. 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 because 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..