What Is the Logic Behind this Pricing Strategy?
May 16, 2007 9:21 AM Subscribe
What is the strategy behind gas station pricing? Frequently I'll see two gas stations across the street from one another. Basic sales logic would tell you that the two stations need to be price competitive with one another to earn business, since both are equally accessible to customers. Yet often I'll notice that one station's per gallon price is a good $.10 higher than the across the street competitor. Is there a strategy to this than I'm missing? Or just illogical greed?