Egg logic – apply to reduce Fuel price


The below mail was forward, I think it is worth a read for people who want to reduce the price of Petrol. If not many, I would like to still support this movement. Wish there was some website to educate people.

A man eats two eggs each morning for breakfast.  When he goes to the
grocery  store he pays 60 cents a dozen. Since a dozen eggs won’t last
a week he normally buys two dozen at a time. One day while buying eggs he
notices that the price has risen to 72 cents. The  next time he buys
groceries, eggs are 76 cents a dozen.

When asked to explain the price of eggs the store owner says, “The price
has gone up and I have to raise my price accordingly”. This store buys 100
dozen eggs a day.  He checked around for a better price and all the
distributors have raised their prices. The distributors have begun to buy
from the huge egg farms.  The small egg farms have been driven out of
business.  The huge egg farms sell 100,000 dozen eggs a day to distributors.
With no competition, they can set the price as they see fit. The
distributors then have to raise their prices to t he grocery stores. And on
and on and on.

As the man kept buying eggs the price kept going up. He saw the big egg
trucks delivering 100 dozen eggs each day. Nothing changed there.   He
checked out the huge egg farms and found they were selling 100,000
dozen eggs to the distributors daily. Nothing had changed but the price of
eggs.

Then week before Thanksgiving the price of eggs shot up to $1.00 a
dozen. Again  he asked the grocery owner why and was told, “Cakes and
baking for the holiday”.  The huge egg farmers know there will be a lot of
baking going on and more eggs will be used. Hence, the price of eggs goes
up. Expect the same thing at Christmas and other times when family cooking,
baking, etc. happen.

This pattern continues until the price of eggs is 2.00 a dozen. The man
says, ” There must be something we can do about the price of eggs”.

He starts talking to all the people in his town and they decide to stop
buying  eggs. This didn’t work because everyone needed eggs.

Finally, the man suggested only buying what you need.  He ate 2 eggs a
day. On the way home from work he would stop at the grocery and buy two
eggs. Everyone in town started buying 2 or 3 eggs a day.

The grocery store owner began complaining that he had too many eggs in
his cooler.  He told the distributor that he didn’t need any eggs.  Maybe
wouldn’t need any all week.

The distributor had eggs piling up at his warehouse.  He told the huge
egg farms that he didn’t have any room for eggs would not need any for at
least two weeks.

At the egg farm, the chickens just kept on laying eggs.   To relieve
the pressure, the huge egg farm told the distributor that they could buy
the eggs at a lower price.

The distributor said, ” I don’t have the room for  the %$&^*&% eggs
even if they were free”.   T he distributor told the grocery store owner
that he would lower the price of the eggs if the store would start buying
again.

The grocery store owner said, “I don’t have room for more eggs. The
customers  are only buying 2 or 3 eggs at a time.  Now if you were to
drop the price of eggs back down to the original price, the customers would
start buying by the dozen again”.

The distributors sent that proposal to the huge egg farmers but the egg
farmers liked the price they were getting for their eggs but, those
chickens just kept on laying.  Fin ally, the egg farmers lowered the price
of their eggs.

But only a few cents.

The customers still bought 2 or 3 eggs at a time. They said, “when the
price of  eggs gets down to where it was before, we will start buying by
the dozen.”

Slowly the price of eggs started dropping.  The distributors had to
slash their prices to make room for the eggs coming from the egg farmers.

The egg farmers cut their prices because the distributors wouldn’t buy
at a higher price than they were selling eggs for. Anyway, they had full
warehouses and wouldn’t need eggs for quite a while.

And those chickens kept on laying.

Eventually, the egg farmers cut their prices because they were throwing
away eggs they couldn’t sell.

The distributors started buying again because the eggs were priced to
where the  stores could afford to sell them at the lower price.

And the customers starting buying by the dozen again.

Now, transpose this analogy to the gasoline industry.

What if everyone only bought $10.00 worth of gas each time they pulled
to the pump?  The dealer’s tanks would stay semi full all the time.  The
dealers wouldn’t have room for the gas coming from the huge tank farms.
The tank farms wouldn’t  have room for the gas coming from the refining
plants. And the refining plants wouldn’t have room for the oil being off
loaded from the huge tankers  coming from the oil fiends.

Just $10.00 each time you buy gas. Don’t fill it up.  You may have to
stop for gas twice a week but, the price should come down.

Think about it.

As an added note…When I buy $10.00 worth of gas that leaves my tank a
little under quarter full. The way prices are jumping around, you can
buy gas for $2.65 a gallon and then the next morning it can be $2.15.
If you have your tank full of $2.65 gas you don’t have room for the $2.15
gas.

You might not  understand the  economics of only buying two eggs at a time
but,

you can’t buy cheaper gas if your tank is full of the high priced stuff.

Also, don’t buy anything else at the gas station; don’t give them any
more of your hard earned money than what you spend on gas, until the prices
come down…”

just think of this concept for a while.

………………please pass this concept around….reaching out to
the mass ..the world …..the universe

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3 thoughts on “Egg logic – apply to reduce Fuel price

  1. This is a good logic. But until all the people follow it we wont see any effect. Sadly OPEC controls the prices. Most people just fill up the tank when they get gas.

  2. This logic will not work. The demand for fuel is not truly coming down. If everyone starts going twice a week to petrol bunk then the number of customers per day will increase, so sales per day will remain the same.
    If the demand truly comes down ie., if we cut down on fuel usage then we can see the price coming down, ofcourse demand is not the only factor that control price. If we start car pooling or reduce the usage of fuel by using other environmental friendly vehicles then the fuel price would reduce.

  3. I agree with Mickey. Going by the egg analogy, buying 2 eggs 12 times and buying 12 eggs 2 times are the exact same thing, except that the former requires more effort on the consumers part. If anything, putting only $10 of gas costs more because it requires you to go out of your way to the gas station 4-5 times more often (if it takes $40-50 to fill your tank).
    And there is nothing to guarantee that the price will go up after you fill up. What if you put a quarter tank of $2.15 gas into your car and then the price jumps up to $2.65? Unless you can predict day-to-day future gas prices, you are just as likely to come out on the losing end of this deal.

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