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Home > Blog > Why Pay More?
Out of Our Minds
Friday, August 19, 2005 9:04 AM
Why Pay More?
Anita Sharpe on Business

Who can explain this: near my office are two gas stations -- both big global brand names -- that are across the street from one another. It's a one-way street, so each station is equally convenient for commuters. Brand X is selling its regular gas for $2.59 a gallon; Brand Y is asking $2.79. Who is paying for Brand Y, and why?


5 comments

RTodd - 8/22/2005 9:01:37 PM
Boris nailed it for me. I have shopped at the same Gas Station for several years. Why? It's on the right side of the street with easy access back to the main highway. What's interesting is that several years ago I shopped at another station but the annoying questions if I wanted a car wash got to be too much. Can you say Type A...
Shawn Lea - 8/22/2005 3:17:23 PM
If Brand Y is on the right side of the street of a busy intersection, I would bite. (Of course, that only works one way.) I used to obsess about price, now I just pull into the station that's on the easiest side of the road.
Mike Duffy - 8/21/2005 7:37:00 PM
If Brand Y is Shell, they offer credit card purchasers (using a Shell-branded Citi card) 5% off gasoline purchases. So that $2.79 a gallon is really $2.65 a gallon - I know this figures into my own purchases of A vs. B. Just a thought.
Boris - 8/20/2005 11:51:57 PM
1. habit
2. laziness

C'mon that is simple. If you will ask the people shoping at the more expensive one they will answer you either that they 'always come here', or that the one they used was just on the right site of the street...........
Janet Auty-Carlisle - 8/19/2005 9:40:29 AM
Hey,
We have the same thing happen here in Ontario, Canada. I think it's just convenience more than anything else. We have two stations near us and one is generally a little cheaper than the other. If there is a price war going on for part of a day I always go to the one that is the little cheaper.
Twice at this spot I told them the other station had dropped their price and, upon checking with their binoculars to confirm this, they dropped theirs immediately...and...they thanked me!
I was just happy to get the lower price.

Living la vida fearless.
Jan
www.tobeyourbest.net

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