I got into a discussion with someone lat night that threw me off a bit. I couldn't help myself but I giggled at their theory right to their face and almost felt bad afterwards.
We were discussing the increasing gas prices and why some gas stations charge more than others.
I offered up the suggestion that among other things, gas is like buying things in the supermarket -- you have brand names such as Exxon or Mobil and you have generic type gas stations like Raceway or Blue Star. In the long run, it doesn't matter where you buy your gas but the brand names with their advertising and promotional methods make you feel as though their product is better.
This person I was talking to just couldn't bring themselves to buy gas at a more generic place. They know deep down that there isn't a difference but they just can't get themselves to buy that gas. The inherent belief that the brand names are better is apparent to them and me.
We then diverged and began to discuss why some places are cheaper besides the generic vs brand issue. This person's main theory is silly to me, but I wanted to ask you my humble readers what you think...
They believe that gas stations are enabled to charge more if they are "on the corner." Being on the corner makes it easier for them to charge you more because of "convenience." If the gas station is only available on a road like Route 1 South and you have to take various jug handles to get to the place, they have to charge you less to make themselves more enticing to you.
It made me laugh. I will give this person one thing. If the busines is the first gas station after getting off of a major road, I can see the price being high as people are often looking for the first available gas station to just fill up their car as soon as they can. That just makes good business sense.
I cannot however agree that just because a gas station is on a corner with two points of entry that they can charge more than the gas station that is 1500 feet south with only one point of entry.
What do you guys think?
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