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Pastimes : BS Bar & Grill - Open 24 Hours A Day

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To: Ilaine who wrote (6829)	1/3/2007 4:54:09 AM
From: Maurice Winn	Read Replies (1) of 6901

<Maybe you can explain why BP prices are so much higher than other gas companies?> Only in principle. I suppose you are correct. Companies take a position in the market for various reasons. Some prefer to sell less, but at higher prices and higher margins. Maybe they have higher quality product - are you comparing like with like? Maybe they are full-service locations. Maybe they are surrounded by discounters who go for cut cost, cut price volume. Maybe they are premium locations with high rents or land prices, with very high traffic flows so they can handle a smaller proportion of the flow, so they might as well charge those who visit a lot. Maybe they have a consistent price strategy over whole states or more. Maybe they are short of supplies due to limited refining capacity for the quality they sell. Maybe their brand is really popular so they can charge more for their limited supplies. Something like that. Mqurice

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