Could someone please explain the yo yo pricing?
- Thread starter grampi
- Start date
Right about what? They said "I don't understand" in the first sentence (hence their question). Nobody is saying it doesn't happen.
It could be so many things, suspected increase in demand, such as holiday driving weekend, or just the weekend, but now it's getting close to Thanksgiving, so it could be this:
Also, no one has given a logical reason why it happens...it ain't supply and demand...Right about what? They said "I don't understand" in the first sentence (hence their question). Nobody is saying it doesn't happen.
Well, it is, except it can be a bunch of other things too.
For example, I knew a lady that worked for a lumber company. Her only job was to call ALL of the surrounding suppliers of 2X4's in the area and ask them the price of a certain 2X4.
Each day, the said lumber company would adjust their price tags to reflect the surrounding market.
In this day and age, not only do gas stations engage in this practice, but the oil companies themselves do as well.
I also knew a lady that kept a US weather map up on her computer screen all day. If an area was predicting snow, she would surmise that demand would go up. And you can imagine what stations in that area did.
Weekends and holidays are even easier to predict.
Gov't policy, not so much, but still a factor.
AI will make these kind of thing infinitely more "accurate" for lack of a better term. Let's suppose you have your're cell phone on you and you are walking through a WalMart with "Dynamic" pricing. Computers can track your net worth, or money in your account, and change the price of the item accordingly.
I'm starting to see those electronic signs at gas stations as well. Pretty common in fact. How often do you think those prices can change? Hourly, or by the minute? Can it be tied into the electronic tank level reporting system? Very easily. Expected delivery time, yep. Source of said delivery? No doubt.
4wd
$50 site donor 2026
But that 2x4 and that gallon of gasoline is already owned by the retailer - and retailer is not the oil company …
They do business with the distribution companies … for resupply …
Article on current oil prices Market watch link
We have,
Sounds like you should go ask the managers at those stations. If they don't give you an answer then it may be a forever mystery for you.
We all know that the Free Masons have been infiltrated by the Lizard People and are controlling the worlds markets.We have,
Sounds like you should go ask the managers at those stations. If they don't give you an answer then it may be a forever mystery for you.
Its simply retailers maximizing profit based on demand curves. Much like a beer is more expensive at the ball game than the grocery store.
Here its a weekly cycle - high on the weekends for tourists and those living paycheck to paycheck that fill on Friday, cheapest on Wednesday, and add a morning / evening price cycle (cheaper in the AM). Until you throw a long weekend or hurricane into the mix.
The fact that you have figured out your cycle puts you in the top 0.0001% observant.
Here its a weekly cycle - high on the weekends for tourists and those living paycheck to paycheck that fill on Friday, cheapest on Wednesday, and add a morning / evening price cycle (cheaper in the AM). Until you throw a long weekend or hurricane into the mix.
The fact that you have figured out your cycle puts you in the top 0.0001% observant.
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4wd
$50 site donor 2026
Yeah, it’s multiple parties setting prices - when not all are limited to commodity prices. All whilst people rage on Big Oil with “rich” CEO’s …
(When only the independent CEO’s are rich) …
4wd
$50 site donor 2026
And mixed drinks cost more at a … wait, I should stop there
Current wholesale spot price East of the Mississippi is well under $2. That includes crude oil production, refining, and delivery to the regional DC.
So anything your paying above $2 is tax, a little bit of local transport and retail margins. Don't believe the talking heads - the data is all available to those that want it.
If the price jumps more than a couple pennies in a day its retail margins adjustment, because all the other stuff is either fixed (like taxes) or changes very slowly - like crude prices.
If "1" rises to "2", that's a 100% increase.
If "20" rises by the same "1" to "21", that's a 5% increase.
If 100 rises by the same "1" to 101, that's a 1% increase.
Be careful with stats, that's all I am saying.
If "20" rises by the same "1" to "21", that's a 5% increase.
If 100 rises by the same "1" to 101, that's a 1% increase.
Be careful with stats, that's all I am saying.
Stats aren't supposed to be accurate, lol.
The saying, "Lies, d*** lies and statistics" isn't an exaggeration.
The saying, "Lies, d*** lies and statistics" isn't an exaggeration.
its an Ohio thing. They used to call it the speedway effect. (speedway gas stations)
they would all use price optimization from corporate and everyone else moved shortly afterwards with their prices.
The other day gas went from 2.22 at getgo to 3.09 in 24 hours.
then over 7 days its back down to 2.68, I expect within a week it will bottom out and shoot up to 3$ again.
(these are advantage prices, CC prices are 5-30 cents more)
Its very aggressive in Ohio "price cycling"
https://www.cspdailynews.com/fuels/speedway-effect
"So the Speedway Effect is essentially leadership or pricing control in these markets," Patrick DeHaan told WISH. "Speedway tends to be a very competitive chain. And their strategy is simply that they are the first to move in either direction."
https://wnbf.com/binghamton-gas-price-jump-linked-to-the-speedway-effect/
"
Patrick DeHaan, a petroleum analyst for GasBuddy.com, says the sudden increase in pump prices this week didn't appear to be related to any developments in the industry.
Instead, DeHaan said, the jump most likely was linked to something known in the business as "price cycling." He said it's sort of a game some gas retailers utilized as part of their marketing strategy.
DeHaan said Speedway often employs the technique in many of its markets. He said Speedway stations will gradually lower their prices to sell gas at or just below cost.
Competing outlets closely monitor prices at nearby stations and tend to adjust their prices accordingly.
but, DeHaan said, at some point in the "game" Speedway will move to a "price restoration" that results in a big price jump at its stations in a market. Other competing stations then follow suit. He calls it the "Speedway Effect."
they would all use price optimization from corporate and everyone else moved shortly afterwards with their prices.
The other day gas went from 2.22 at getgo to 3.09 in 24 hours.
then over 7 days its back down to 2.68, I expect within a week it will bottom out and shoot up to 3$ again.
(these are advantage prices, CC prices are 5-30 cents more)
Its very aggressive in Ohio "price cycling"
https://www.cspdailynews.com/fuels/speedway-effect
"So the Speedway Effect is essentially leadership or pricing control in these markets," Patrick DeHaan told WISH. "Speedway tends to be a very competitive chain. And their strategy is simply that they are the first to move in either direction."
https://wnbf.com/binghamton-gas-price-jump-linked-to-the-speedway-effect/
"
Patrick DeHaan, a petroleum analyst for GasBuddy.com, says the sudden increase in pump prices this week didn't appear to be related to any developments in the industry.
Instead, DeHaan said, the jump most likely was linked to something known in the business as "price cycling." He said it's sort of a game some gas retailers utilized as part of their marketing strategy.
DeHaan said Speedway often employs the technique in many of its markets. He said Speedway stations will gradually lower their prices to sell gas at or just below cost.
Competing outlets closely monitor prices at nearby stations and tend to adjust their prices accordingly.
but, DeHaan said, at some point in the "game" Speedway will move to a "price restoration" that results in a big price jump at its stations in a market. Other competing stations then follow suit. He calls it the "Speedway Effect."
f355spider
$50 Site Donor 2026
A little different. Most utilities are regulated by city, county and state governments. So they cannot change prices on a whim. Also, utility prices only go up....I've never seen them go down.
In the metro area, I've noticed the spread between grades to me significantly increased over earlier in the year
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