Our small town gas station went bankrupt because of the rising gas prices.
They calculated the gas price based on what they paid for the tank to be filled. When the price of gas skyrocketed, they kept the low price. News got out it was the cheapest gas around and people from all over came, filled up, and drained the tank.
When they had the tank refilled, it was 3x or so the price. So they raised their price. Not many came around anymore. Then gas prices lowered, but they were stuck with the higher-than-anyone priced tank of fuel. They kept missing the dips and were stuck with peak bills, losing fickle customers all along the way.
Is it wrong to base your price on the price it will cost to restock?
Our small town gas station went bankrupt because of the rising gas prices.
They calculated the gas price based on what they paid for the tank to be filled. When the price of gas skyrocketed, they kept the low price. News got out it was the cheapest gas around and people from all over came, filled up, and drained the tank.
When they had the tank refilled, it was 3x or so the price. So they raised their price. Not many came around anymore. Then gas prices lowered, but they were stuck with the higher-than-anyone priced tank of fuel. They kept missing the dips and were stuck with peak bills, losing fickle customers all along the way.
Is it wrong to base your price on the price it will cost to restock?