Gas Prices, Hose Jobs, and Potato Chips
Yahoo news reported today that we are still getting hosed at the pump. Not just big oil this time, though they continue to stick it to us as well, but by our local mini-mart gas station. It appears retailers are not dropping prices until several days after they receive a new shipment of gas, gas which has been a little cheaper in the past few weeks.
I think this is terribly short-sighted of retailers. No matter what, they are never going to get much of a margin on gas. However, every penny the consumer has to spend on gas, he/she does not get to spend on potato chips. And the retailer has more than a fair margin on this most amazing of products.
It seems like the potato chip industry is doing the exact opposite of the ice cream industry. The ice cream industry lures you into believing you are getting a quart or half gallon of the delicacy, while you are actually getting cups less. The potato chip industry keeps increasing the size of their bag, while increasing the price even more.
I can remember when a bag of chips for my grade school lunch box cost a nickel. It contained a reasonable amount of chips, enough that I did not hunger for more. Before long the same size bag cost a dime, than a quarter, and finally fifty cents. Then a slightly larger bag cost quite a bit more, maybe seventy-nine cents. Then a bigger bag than that cost ninety-nine cents. I am talking Frito-Lay products, which I believe is Pepsico. These products were called Big Grab. The potato chip version of 7-11’s Big Gulp. The price went up about 30%, while the amount of chips in the bag went up about 10%. I am estimating, no scientific studies on this.
The thing about the Big Grab was it had more chips than I really needed or wanted. Of course, that did not stop me from eating all of them. Now there is a new product out, I think called a super grab-they don’t offer regular, Big Grab, and Super Grab, the only product available is the Super Grab. This has way more chips than I need or want. I have actually been able to avoid purchasing this a few times simply for that reason. Several other times I have not been able to avoid purchasing it.
Anyway, back to the mini-mart. Drop the price on gas and let us buy more potato chips. If you don’t drop the gas price, we are going to complain and call you a crook. But if you do drop the price of gas, we will think you actually feel for our suffering. Plus, we will still spend the money at your store, probably buying those chips I have talked of. This seems like a win/win situation for everyone.
I don’t even know the price of a bag of chips, or of the bottle of pop I usually buy with it-when I was a kid, 10 returnable bottles were the standard, now 20 ounce throw in the garbage plastic bottles are, but this is a chip story. What I am trying to tell you Mr. Retailer is that we aren’t going to complain about the price of chips. Let the chips fall where they may. Actually rise where they may.
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