Sent: Wednesday, April 26, 2006 9:43 AM
Subject: Something to think about if nothing
else
Very long,but worth the Read
!
Something to think about if nothing else.
Enjoy...
This makes a lot of sense~ read to the
end!!!
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 dozens 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 $1.00 a
dozen.
Again he asked the grocery owner why and was told,
"cakes and baking for the holiday". The huge egg farmers know there
will be a lot of baking going on and more eggs will be used. Hence,
the price of eggs goes up.
Expect the same thing at Christmas
and other times when family cooking, baking, etc.
happen.
This pattern continues un til the price of eggs is
2.00 a dozen. The man says,"there must be something we can do about
the price of eggs".
He starts talking to all the people in
his town and they decide to stop buying eggs. This didn't work
because everyone needed eggs. Finally, the man suggested only buying
what you need.
He ate 2 eggs a day. On the way home from work
he would stop at the grocery and buy two eggs. Everyone in town
started buying 2 or 3 eggs a day. The grocery store owner began
complaining that he had too many eggs in his cooler. He told the
distributor that he didn't need any eggs.
Maybe wouldn't need any
all week.
The distributor had eggs piling up at his
warehouse. He told the huge egg farms that he didn't have any room
for eggs would not need any for at least two weeks.
At the
egg farm, the chickens just kept on laying eggs.
To relieve
the pressure, the huge egg farm told the distributor that they could
buy the eggs at a lower price. The distributor said, " I don't have
the room for the %$&^*&% 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..
**_Everyone should read this and send it on!
_**
Harry H.
Gilliam