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  #1  
Old 05-08-2007, 04:40 PM
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Gas station owner told to raise prices

MERRILL, Wis. - A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices. Center City BP owner Raj Bhandari has been offering senior citizens a 2 cent per gallon price break and discount cards that let sports boosters pay 3 cents less per gallon.

But the state Department of Agriculture, Trade and Consumer Protection says those deals are too good: They violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price.

http://news.yahoo.com/s/ap/20070508/...dd_cheap_gas_1
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  #2  
Old 05-08-2007, 06:19 PM
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Actually, believe it or not, laws like that one are there to protect small business. I wish there was such laws in my industry.

An example of why such laws are needed is this:

Imagine a senerio where "Joe" has a small privately owned gas station in town. "Corporation X" owns all the other gas stations in the country except for Joe's station. So Corporation X decides that they will lower gas prices at the 3 gas stations nearest to Joe's to the point where those 3 stations will actually be losing money on each gallon. Corporation X decides that they are willing to lose money for 6 months -- the amount of time they determine that it will take for Joe's to go out of business. Then they will gain Joe's share of the market and make their loses back after he goes out of business.

See where this is heading?

Without such laws, small businesses cannot compete with large corporations who have deep pockets and can afford to lose money.
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  #3  
Old 05-08-2007, 06:27 PM
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Walmart???


Quote:
Originally Posted by Eric5273
Actually, believe it or not, laws like that one are there to protect small business. I wish there was such laws in my industry.

An example of why such laws are needed is this:

Imagine a senerio where "Joe" has a small privately owned gas station in town. "Corporation X" owns all the other gas stations in the country except for Joe's station. So Corporation X decides that they will lower gas prices at the 3 gas stations nearest to Joe's to the point where those 3 stations will actually be losing money on each gallon. Corporation X decides that they are willing to lose money for 6 months -- the amount of time they determine that it will take for Joe's to go out of business. Then they will gain Joe's share of the market and make their loses back after he goes out of business.

See where this is heading?

Without such laws, small businesses cannot compete with large corporations who have deep pockets and can afford to lose money.
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  #4  
Old 05-08-2007, 06:35 PM
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This same thread came up last year I think.....time to use the search engine
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  #5  
Old 05-08-2007, 06:54 PM
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Could be but this guy didn't buy the station until last year and according to the article the station owner (Bhandari) said he received a letter from the state auditor in late (April which was last month) saying the state would sue him if he did not raise his prices. So i don't see how it could have come up last year. Secondly if this article came up in Yahoo 3 Hours ago there must be something more to the story but nothing was mentioned regarding it.

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Originally Posted by WagnerX5
This same thread came up last year I think.....time to use the search engine
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  #6  
Old 05-08-2007, 07:21 PM
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Quote:
Originally Posted by Quicksilver
Center City BP owner Raj Bhandari...
Profiling.

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  #7  
Old 05-08-2007, 08:30 PM
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And why should seniors and soccer moms get a break on gas prices..
I think guys like me, SUV driving, V8 loving, multi car garage dudes, should be the one to get the best prices.. After all, we burning the most fuel ..lol..
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Old 05-08-2007, 10:33 PM
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wrong way for a state to go.
when our average hits $3, were supposedly to kick all gas taxes but does it ever happen?
hell no.
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  #9  
Old 05-09-2007, 02:53 AM
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Soccer moms? No break for them. Seniors? Oh yes give em a brake. Why? Just because.

Quote:
Originally Posted by B-Line
And why should seniors and soccer moms get a break on gas prices..
I think guys like me, SUV driving, V8 loving, multi car garage dudes, should be the one to get the best prices.. After all, we burning the most fuel ..lol..
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