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  • Price of eggs

    THE PRICE OF EGGS

    This makes so much sense. Supply and Demand. I'll never fill up again until the prices come down.

    Give this story some serious thought ! ! ! !

    The Price of eggs

    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. I 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 sells 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 the 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".

    The 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 buy 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. They
    liked the price they were getting for their eggs but, them chickens just kept on laying.

    Finally, 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 them 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 dealers 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 Middle East.

    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 half 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..




    is this possible??
    sigpic
    when do native Americans become human and not mascots

  • #2
    Arapaho,
    That is a very interesting story. There is something we can learn from the purchasing of those eggs that we can come away with better consumer knowledge on the gas.

    I'm willing to give it a try. I hope everyone else will. This is something that would take many people to participate. It may be a slight inconvience at the beginning, but it may make a huge difference in my wallet at the end.

    I have an SUV so I'll have to put in at least about 15 dollars to get through 1 and half days though.
    Emancipate your mind!
    The People's Poster

    Comment


    • #3
      Coordinating this on a massive scale would be nearly impossible.

      Plus, production can be cut on gas and oil whereas you can't tell the chickens to stop laying eggs.

      Also, what grocery store lets you buy only 2 or 3 eggs? A half-dozen is the fewest I can find. And if the stores wanted they could stop selling the half-dozen containers and force you to buy a dozen at a time.

      The only way to really affect either situation would be simply to use less than you do now... only on a nation-wide level.
      "You can't take the sky from me..."
      ------
      "You can't shake the Devil's hand and say you're only kidding"

      Comment


      • #4
        I'm not sure this analogy holds, or does exactly what you think it does.

        First of all, eggs are perishable. The reason the store had to throw out eggs is because they would spoil and he'd have to keep accepting new eggs. If people start buying less gasoline, the gas station simply doesn't call for a new tanker as often, and the gas company sits on an ever growing reserve of 'inventory'. To extrapolate this to the extreme, eventually the refineries to cut back supply to match demand. However, as the production can't keep up for demand now as it is, this just doesn't seem possible.

        Further, gas is pretty much a necessity for people, as opposed to eggs. I can stop buying eggs whenever I want for as long as I want. However, I still have to drive to work every day and that distance isn't going to shrink. So, if I were to buy half as much gas every time I go to a gas station I'll be going twice as much.

        So, price won't come down simply because people are going to buy less gas each time because demand won't change. It is only with a marked change in DEMAND would market forces push the price of gas down. There are other ways to bring the price of gas down, but nothing fast and nothing that wouldn't quickly begin to have political tinges to it.
        Victory and defeat are matters of the temporary force of circumstance.



        Thanks, Snk16!!

        Comment


        • #5
          I wish this would happen as far as gas is concerned.....

          But the problem isn't with those setting the prices, it's with those who are buying the gas & allowing this to go on. As I have said before, people complain, but do nothing to solve the problem.

          Gas is why I don't live in Chucktown now.
          Save gas by living in the city where I work.

          It sucks.

          I like eggs, BTW.
          Just the other day, Ghandi made these ham & fried egg sandwiches to die for.
          Jesus ate three ONLY because we dared him to.

          He had heartburn all day long from it. We all had a good laugh.

          Comment


          • #6
            There is something I don't like in that argument, and even in the context of the example it wouldn't work. First, if people are still eating the same amount of eggs, chances are that weekly the store will sell exactly the same amount and depending on the periodicity of the re-stocking process, could happen absolutely nothing.

            And even if it indeed changes things, in a couple of weeks everybody should be aware of that, and the possible price reduction would have been temporary.

            If you do something like that with gas, the only possible effect that could have is that you'd have to stop twice as many times, increasing your gas consumption every time that you start your engine after half-filling your tank.

            The only way to have an impact in gas prices is, reducing the use of the car, change habits:
            - Use public transportation as much as you can.
            - Car pool.
            - Limit your trips (if you can go to buy your groceries once every two weeks instead of once a week).
            - Don't drive faster than 60.
            - Don't use the AC.
            - Don't keep the engine running while you're still parking.
            - If you're considering buying a car, give fuel efficiency more importance.

            The bad news... in the short run, pretty much, we're helpless.

            Comment


            • #7
              Save on gas....ride a horse.

              Better yet.............


















              You know what I'm going to say.....don't you?




















              Save a horse, ride a COWBOY.

              Comment


              • #8
                Originally posted by Jewels
                You know what I'm going to say.....don't you?

                Ooh ohh! Pick me!

                (no... not like that....)

                I know the answer!

                Comment


                • #9
                  Originally posted by Jewels
                  Save on gas....ride a horse.

                  Better yet.............


















                  You know what I'm going to say.....don't you?




















                  Save a horse, ride a COWBOY.

                  *Looks for ten gallon hat and old Village People Halloween costume*

                  Everybody's gotta elevate from the norm...

                  The greatest list of music I don't own on CD :sad:
                  You should check these guys out

                  Comment


                  • #10
                    Originally posted by Jewels
                    Save on gas....ride a horse.

                    Better yet.............


















                    You know what I'm going to say.....don't you?




















                    Save a horse, ride a COWBOY.
                    Lol, or ride an Elvis Cow

                    Comment


                    • #11
                      Haha

                      Comment


                      • #12
                        The best thing to do is just steal gas. Get an El Camino with the license plate in the tailgate and let it down before you pull up to the pump. Oh...and you may want to wear a hood or a mask.

                        Comment


                        • #13
                          i recieved another gas letter .....this one came from a guy who was an excecutive in a very large corporation.....what he recommender is that every one email a notice to all your contacts, they in turn pass it on and so on to stop buying gas from the two or three largest producers and stick to the smaller ones......

                          GAS WAR - an idea that WILL work

                          This was originally sent by a retired Coca Cola executive It came from

                          one of his engineer buddies who retired from Halliburton. It's worth
                          your consideration.

                          Join the resistance!!!! I hear we are going to hit close to $ 4.00 a
                          gallon by next summer and it might go higher!!
                          Want gasoline prices to come down? We need to take some intelligent,
                          united action.

                          Phillip Hollsworth offered this good idea. This makes MUCH MORE SENSE
                          than the "don't buy gas on a certain day" campaign
                          that
                          was going around last April or May! The oil companies just laughed at
                          that because they knew we wouldn't continue to "hurt" ourselves by
                          refusing to buy gas. It was more of an inconvenience to us than it
                          was
                          a problem for them. BUT, whoever thought of this idea, has come up
                          with
                          a plan that can really work. Please read on and join with us!

                          By now you're probably thinking gasoline priced at about $1.50 is
                          super cheap. Me too! It is currently $2.79 for regular unleaded in my
                          town. Now that the oil companies and the OPEC nations have
                          conditioned us to think that the cost of a gallon of gas
                          is
                          CHEAP at $1.50 - $1.75, we need to take aggressive action to teach
                          them
                          that BUYERS control the marketplace..not sellers. With the price of
                          gasoline going up more each day, we consumers need to take action. The

                          only way we are going to see the price of gas come down is if we hit
                          someone in the pocketbook by not purchasing their gas! And, we can do
                          that WITHOUT hurting ourselves. How?

                          Since we all rely on our cars, we can't just stop buying gas. But we
                          CAN have an impact on gas prices if we all act together to force a
                          price war.

                          Here's the idea: For the rest of this year, DON'T purchase ANY
                          gasoline from the two biggest companies (which now are one), EXXON and

                          MOBIL. If they are not selling any gas, they will be inclined to
                          reduce their prices. If they reduce their prices, the other companies
                          will have to follow suit. But to have an impact, we need to reach
                          literally millions of Exxon and Mobil gas buyers. It's really simple
                          to
                          do! Now , don't wimp out on me at this point...keep reading and I'll
                          explain how simple it is to reach millions of people!!

                          I am sending this note to 30 people. If each of us send it to at least

                          ten more (30 x 10 = 300) . and those 300 send it to at least ten more
                          (300 x 10 = 3,000)...and so on, by the time the message reaches the
                          sixth group of people, we will have reached over THREE MILLION
                          consumers.

                          If those three million get excited and pass this on to ten friends
                          each,
                          then 30 million people will have been contacted! If it goes one level

                          further, you guessed it..... THREE HUNDRED MILLION PEOPLE!!!

                          Again, all you have to do is send this to 10 people. That's all! (If
                          you
                          don't understand how we can reach 300 million and all you have to do
                          is
                          send this to 10 people.... Well, let's face it, you just aren't a
                          mathematician. But I am . so trust me on this one.) :-)

                          How long would all that take? If each of us sends this e-mail out to
                          ten more people within one day of receipt, all 300
                          MILLION
                          people could conceivably be contacted within the next 8 days!!! I'll
                          bet
                          you didn't think you and I had that much potential, did you! Acting
                          together we can make a difference.
                          sigpic
                          when do native Americans become human and not mascots

                          Comment


                          • #14
                            What about the people that only have those stations in their town?
                            What about the people that have their 'gas' cards?
                            What about the gas stations that don't advertise their distributor? Are 300 million people going to drive around their towns, ask the cashier who their distributor is?
                            Most likely, this email will end up in THEIR inbox, and they will inform their cashiers to not speak an utterance, when approached.
                            What about the people that have to drive OUT OF THEIR WAY to get gas elsewhere? Isn't that almost redundant?

                            How's that for a rebuttal?





                            ....
                            "It does not take a majority to prevail, but rather an irate,
                            tireless minority keen on setting brushfires of freedom in the minds of
                            men."

                            -- Samuel Adams

                            sigpicJacks RULE!!!!!!

                            Comment


                            • #15
                              It is a good consept but the way it is explained doesn't really work out. Here is why. The man used a dozen eggs a week before when he was buying them by the dozen. Now he is using a dozen eggs a week buying 2 at a time. The demand is still there. For demand to go down and supply to go up you would have to use less of the supply overall. Not just buying less at a time. With gas they send people to fill the tanks once a week lets say. You still use the same amount of gas and take the same amount out of that tank every week you just space it out now. So the tanks will still go empty and need to be filled. For this to work you would need to figure ways to save on gas by not driving to places that are within walking distance or by riding a bike to places in range of that. Using the same amount over a period is still using the same amount. But good consept just was a little off.

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