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Gas Station Owner Told to Raise Prices

Gas Station Owner Told to Raise Prices
By Associated Press
3 hours ago

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.

Bhandari said he received a letter from the state auditor in late April saying the state would sue him if he did not raise his prices. The state could penalize him for each discounted gallon he sold, with the fine determined by a judge.

Bhandari, who bought the station in May 2006, said he worries customers will think he stopped the discounts because he wants to make more money. About 10 percent of his customers had used the discount cards.

Dale Van Camp of Merrill said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.

link
 
Originally posted by: BoberFett
States setting price floors on gasoline is quite common.

Pretty much. It's to prevent big companies from selling gas at unprofitable prices to drive the competition out of business so they can sell gas at higher prices.
 
discount cards that let sports boosters pay 3 cents less per gallon.

Dale Van Camp of Merrill said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.

:Q:Q Whaaaaa?

$100/$0.03 = 3,333.33 gallons used / year....
Assuming his car gets an average of 15 MPG (low)...

15 x 3,333.33 = 50k miles.

Either this guy drives a 5MPG tank, or spends his entire life on the road. I'm calling shens.
 
Originally posted by: mugs
Originally posted by: BoberFett
States setting price floors on gasoline is quite common.

Pretty much. It's to prevent big companies from selling gas at unprofitable prices to drive the competition out of business so they can sell gas at higher prices.

Why would you need to set a price floor for that? That could fall under antitrust practices.
 
Originally posted by: mugs
Originally posted by: BoberFett
States setting price floors on gasoline is quite common.

Pretty much. It's to prevent big companies from selling gas at unprofitable prices to drive the competition out of business so they can sell gas at higher prices.

Which is easily circumvented by the larger chains starting a company credit card that simply rebates a few cents per gallon of gas and we're right back where we started. Going after some mom and pop shop seems ridiculous.
 
Originally posted by: Black88GTA
discount cards that let sports boosters pay 3 cents less per gallon.

Dale Van Camp of Merrill said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.

:Q:Q Whaaaaa?

$100/$0.03 = 3,333.33 gallons used / year....
Assuming his car gets an average of 15 MPG (low)...

15 x 3,333.33 = 50k miles.

Either this guy drives a 5MPG tank, or spends his entire life on the road. I'm calling shens.

or he's just bad at math, and figured he was getting a good deal.
 
Originally posted by: BoberFett
States setting price floors on gasoline is quite common.

Common doesn't make it right...

Ugggh, things like price floors on gas just get me one step closer to bolting to Canada.
 
Originally posted by: Black88GTA
discount cards that let sports boosters pay 3 cents less per gallon.

Dale Van Camp of Merrill said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.

:Q:Q Whaaaaa?

$100/$0.03 = 3,333.33 gallons used / year....
Assuming his car gets an average of 15 MPG (low)...

15 x 3,333.33 = 50k miles.

Either this guy drives a 5MPG tank, or spends his entire life on the road. I'm calling shens.

Think multiple car family or small business.
 
Originally posted by: ZOXXO
Originally posted by: Black88GTA
discount cards that let sports boosters pay 3 cents less per gallon.

Dale Van Camp of Merrill said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.

:Q:Q Whaaaaa?

$100/$0.03 = 3,333.33 gallons used / year....
Assuming his car gets an average of 15 MPG (low)...

15 x 3,333.33 = 50k miles.

Either this guy drives a 5MPG tank, or spends his entire life on the road. I'm calling shens.

Think multiple car family or small business.

Even then, how would a $50 card save him $100 per year?
 
Originally posted by: tboo
Its called the minimum markup law here in Wisconsin.

So they cant have those gas price wars between stations ever? Like 2 stations across the street keep undercutting each other until its like 10c a gallon?
 
Originally posted by: PottedMeat
Originally posted by: tboo
Its called the minimum markup law here in Wisconsin.

So they cant have those gas price wars between stations ever? Like 2 stations across the street keep undercutting each other until its like 10c a gallon?

Nope. Wal-Mart tried to set their gas prices 5 cents lower then everyone else about 7ish years ago when they began to sell gas. Texaco took them to court and they won... They claimed unfair competition........ I thought this was America....
 
The Midwest has had some of the lowest gas prices in the nation for quite a few months now; what is this guy complaining about? o.0

Whether or not his intentions were good, his "deal" gave his business an unfair advantage over competing gas stations, and in effect, trying to save other people money, he probably ended up making more himself, in which case he screwed the other stations.
 
Originally posted by: evilsaint
The Midwest has had some of the lowest gas prices in the nation for quite a few months now; what is this guy complaining about? o.0

Whether or not his intentions were good, his "deal" gave his business an unfair advantage over competing gas stations, and in effect, trying to save other people money, he probably ended up making more himself, in which case he screwed the other stations.

Isn't that how capitalism is supposed to work?
 
Originally posted by: evilsaint
The Midwest has had some of the lowest gas prices in the nation for quite a few months now; what is this guy complaining about? o.0

Whether or not his intentions were good, his "deal" gave his business an unfair advantage over competing gas stations, and in effect, trying to save other people money, he probably ended up making more himself, in which case he screwed the other stations.

isn't that the point of owning a business? to make money and do better than your competition?

bah, bombrman beat me to it.
 
Originally posted by: evilsaint
The Midwest has had some of the lowest gas prices in the nation for quite a few months now; what is this guy complaining about? o.0

Whether or not his intentions were good, his "deal" gave his business an unfair advantage over competing gas stations, and in effect, trying to save other people money, he probably ended up making more himself, in which case he screwed the other stations.

OMG he actually made money AT THE SAME TIME as saving us money?! That fvcker!
 
Originally posted by: b0mbrman
Originally posted by: ZOXXO
Originally posted by: Black88GTA
discount cards that let sports boosters pay 3 cents less per gallon.

Dale Van Camp of Merrill said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.

:Q:Q Whaaaaa?

$100/$0.03 = 3,333.33 gallons used / year....
Assuming his car gets an average of 15 MPG (low)...

15 x 3,333.33 = 50k miles.

Either this guy drives a 5MPG tank, or spends his entire life on the road. I'm calling shens.

Think multiple car family or small business.

Even then, how would a $50 card save him $100 per year?

He isnt saying that single card would, the program would have.
 
Originally posted by: Pacfanweb
Wal Mart, Sam's, BJ's, anc Costco around here all give card holders a 2-3 cent discount on gas. Guess it's okay here.

Probably because they charge more for non-card holders, and the base price does not fall below the bottom threshold.
 
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