Price increase?
01-10-2009, 09:31 AM
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RE: Price increase?
Wait a minute. There is a recession going on. That means fewer people are buying things. So how do you get more people to buy things ... you lower the price, right? NO! You RAISE the prices so even FEWER people buy them! [&:]
01-10-2009, 09:58 AM
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RE: Price increase?
Well, that's what's happening in the oil business now. Gasoline sales keep falling each month, so now gas stations are starting to raise prices again.
You know, the first time I saw stuff like this was back in early 1974 during the Arab oil embargo and people were cutting back on all kinds of energy use. I was living in Des Moines then and Iowa Power and Light announced that since their sales had dropped so dramatically, they were going to have to raise the price in order to ensure their investors continued to get fat returns. People thought that was absolutely insane, but since the utility was a monopoly, they had no choice but to pay. Now, it seems to be standard corporate practice for everyone.
You know, the first time I saw stuff like this was back in early 1974 during the Arab oil embargo and people were cutting back on all kinds of energy use. I was living in Des Moines then and Iowa Power and Light announced that since their sales had dropped so dramatically, they were going to have to raise the price in order to ensure their investors continued to get fat returns. People thought that was absolutely insane, but since the utility was a monopoly, they had no choice but to pay. Now, it seems to be standard corporate practice for everyone.
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