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HoustonTX
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- http://news.yahoo.com/s/ap/20070509/ap_on_fe_st/odd_cheap_gas;_ylt=At82MKSqy.LjboNdNvtK_nzMWM0F Is this OWNER NEPALI?? SEE THE NEWS.... Gas station owner told to raise prices Wed May 9, 6:05 AM ET 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 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 last month 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 a year ago, 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 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.
KnightCrawler
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Why is it Bizzare? Its capitalism at work....
BathroomCoffee
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Its probably the other gas station owners that coerced this. I cannot believe the state is getting involved in such a petty matter. I've never hear that selling anything cheap violates sales unfair act ? C'mon now !! I can understand if he was charging more. Saving $100 for local youth hockey is UNFAIR ? If any if Mr Bhandari is the one who is losing money. How about when stores have 25% or 50% off on merchandise ? That unfair sales tactic too then. I just think this is BULLSHIT !! When Visa or mastercard gives you 10% off on merchandise charged to their card ? this is unfair sales tactic too. Department of Agriculture, Trade and Consumer Protection needs to clarify WHY THIS IS AN UNFAIR SALES TACTIC ?
Samsara
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Not Capitalism but unfair/inethical/uneducated intervention at work! Price floors protect the suppliers only, making all of society worse off! This is the basics of Econ. These policy makers should be sent back to college to attend Econ 101!! Where is Adam Smith's "In competition individual ambition serves the common good" statement for Capitalism when you really need it?? Such BS policies make me sick..Makes me think we're under some sans freedom commie regime!
Daddy
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This is a just a clever marketing strategy that Mr. Bhandari is trying to implement. I believe he is lowering price of gas and offering discount coupons just to attract more local traffic at his gas station. If any of you think gas station owners make more money from selling gas than from other merchandise in the shop, then you are wrong BIG time. I don't think he was being 'nice" to seniors or whoever, but just building goodwill in the local community. See in the US, its usually not about what you can offer, but about who is offering the product you need. Thats why brand recognition is such an important part for organizational success. Having said all this, I do think that it wasn't necessary for the state to get involved in this.
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