Thursday, April 20, 2006

JOSHUA TIME 419

The Price of Eggs and Gasoline
Maybe????This is long but worth reading to the end. The one thing I would change would be the amount of product I buy.This makes a lot of sense~ read to the end!!!A man eats two eggs each morning for breakfast. When he goesto the grocery store he pays .60 cents a dozen. Since a dozeneggs won't last a week he normally buys two dozens at a time.One day while buying eggs he notices that the price has risento 72 cents. The next time he buys groceries, eggs are .76cents a dozen. When asked to explain the price of eggs thestore owner says, "the price has gone up and I have to raise myprice accordingly".This store buys 100 dozen eggs a day. I checked around for abetter 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 todistributors. With no competition, they can set the price asthey see fit. The distributors then have to raise their pricesto the grocery stores. And on and on and on. As the man keptbuying eggs the price kept going up. He saw the big egg trucksdelivering 100 dozen eggs each day. Nothing changed there.He checked out the huge egg farms and found they were selling100,000 dozen eggs to the distributors daily. Nothing hadchanged but the price of eggs.Then week before Thanksgiving the price of eggs shot up to$1.00 a dozen. Again he asked the grocery owner why and wastold, "cakes and baking for the holiday". The huge egg farmersknow there will be a lot of baking going on and more eggs willbe used. Hence, the price of eggs goes up. Expect the samething at Christmas and other times when family cooking, baking,etc. happen.This pattern continues un til the price of eggs is 2.00 adozen. The man says,"there must be something we can do aboutthe price of eggs".He starts talking to all the people in his town and they decideto stop buying eggs. This didn't work because everyone neededeggs. Finally, the man suggested only buying what you need.He ate 2 eggs a day. On the way home from work he would stopat the grocery and buy two eggs. Everyone in town startedbuying 2 or 3 eggs a day.The grocery store owner began complaining that he had too manyeggs in his cooler. He told the distributor that he didn'tneed any eggs. Maybe wouldn't need any all week.The distributor had eggs piling up at his warehouse. He toldthe huge egg farms that he didn't have any room for eggs wouldnot need any for at least two weeks.At the egg farm, the chickens just kept on laying eggs.To relieve the pressure, the huge egg farm told the distributorthat they could buy the eggs at a lower price. The distributorsaid, " I don't have the room for the %$&^*&% eggs even if theywere free".The distributor told the grocery store owner that he wouldlower the price of the eggs if the store would start buyingagain. The grocery store owner said, "I don't have room formore 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 theoriginal price, the customers would start buying by the dozenagain".The distributors sent that proposal to the huge egg farmers. They liked the price they were getting for their eggs but, themchickens just kept on laying.Finally, the egg farmers lowered the price of their eggs. Butonly a few cents. The customers still bought 2 or 3 eggs at atime. They said, "when the price of eggs gets down to where itwas before, we will start buying by the dozen."Slowly the price of eggs started dro pping. The distributorshad to slash their prices to make room for the eggs coming fromthe egg farmers. The egg farmers cut their prices because thedistributors wouldn't buy at a higher price than they wereselling eggs for.Anyway, they had full warehouses and wouldn't need eggs forquite a while.And them chickens kept on laying.Eventually, the egg farmers cut their prices because they werethrowing away eggs they couldn't sell. The distributorsstarted buying again because the eggs were priced to where thestores 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. 10GallonsWhat if everyone only bought $10.00 worth of gas each time theypulled to the pump. The dealers tanks would stay semi full allthe time. The dealers wouldn't have room for the gas comingfrom the huge tank farms. The tank farms wouldn't have roomfor the gas coming from the refining plants. And the refiningplants wouldn't have room for the oil being off loaded from thehuge tankers coming from the Middle East. 10 GallonsJust $10.00 each time you buy gas. Don't fill it up. You mayhave to stop for gas twice a week but, the price should comedown.Think about it. 10 GallonsAs an added note...When I buy $10.00 worth of gas,that leavesmy tank a little under half full. The way prices are jumpingaround, you can buy gas for $2.65 a gallon and then the nextmorning it can be $2.15. If you have your tank full of $2.65gas you don't have room for the $2.15 gas. ** Everyone shouldread this and send it on!

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