Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (1896)	9/8/1998 6:27:00 PM
From: Marq Spencer	Respond to of 2578

<OT> Bay Area is minimum $.35 higher gas prices than other parts of California (for example Fresno) A simpler explanation is as follows - Real estate for the gas pump on El Camino in Sunnyvale costs a bit more than in Fresno. And you have to pay slightly higher wages to the people working the gas station. Other costs (utilities, property taxes, etc) may be higher as well. If the land costs are much higher, it leads to much higher operating costs (interest, insurance, etc.) which leads to higher prices. Plus, you need a higher return to get the same rate of return (make $10,000 on a $100,000 investment; make $50,000 on a $500,000 investment; but you may not be selling 5 times as much gas, so sale price minus cost of goods have to be higher). So gas prices are much higher. - Brian.

To: Lizzie Tudor who wrote (1896)	9/8/1998 7:09:00 PM
From: Geoff Nunn	Respond to of 2578

Michelle, Let me suggest a problem with the collusion argument. Presumably you would agree there is no collusion among gas stations in the Bay Area. Their numbers are just too great. If there is collusion it would be among the major oil companies. The problem with this, however, is that gasoline prices nationwide have been falling. If it is so easy for "the majors" to collude, why don't we see more of it? Why are prices high only in the Bay Area not nationwide? Why are the oil companies colluding only in the Bay Area, letting prices elsewhere fall? Geoff