OhBoy! wrote:A difference of a shilling, two or three DOESN'T make much of a difference especially if one is fueling less than 10 liters!!!
Need i explain???
No, you don't need to explain because you don't get the point in the first place. If you sell at a shilling more and you get almost zero customers, you'll definitely reduce your prices by 1/=. The neighbouring fuel station will realize it has lost it's competitive advantage and lower their prices by 1/=. You will consequently reduce your prices again and the neighbouring petrol station does the same. This is replicated by all fuel stations and before we know it, fuel is retailing at what can be termed as the optimal/fair price.
As long as we continue fueling at petrol stations that are selling fuel at 98.4/= while the next station is selling at 90/=, why would they want to reduce their prices. Look at the bigger picture my friend. Not the 1/=.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.