Thread: The Price of EGGS

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 until 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! Gator

Eggs unlike gas is a perishable commodity, although I applaud your intentions. True something has to be done about skyrocketing fuel prices. I would think alternative fuel sources are still our best bet. Solar power, Hydrogen and other renewable energy resources is a must for the future. For now, I'll take your advice of pumping just $10 a time for the Batmobile. :)

EGGcellent analogy,gator;I've been doing EGGzactly that for quite a while now.
I hope it works in the long run.

Great story Gator, which is similar to what I have been doing with a slight twist and I know this is a great idea. The only other comment I would add it this..... Do you think the oil companies were making fat cash when the price of gas was $1.50 per gallon? You bet! Price isn't determined by what the product costs to produce, it is determined by what the market will bear..... and currently our market is bearing $2.85+ per gallon.

With no action, the cost will only go up. In Kuwait, there are more Mercedes, Porsches, Rolls Royce's, Ferrari's, BMW's, etc. on the road than anywhere else. Not even LA, Beverly Hills, etc. have close to the number of these expensive vehicles on the road. Recently, we have been dancing above and around $3.00 a gallon.

Want gasoline prices to come down? We need to take some intelligent, united action. Last April or May, there was a campaign to "not buy gas on a certain day." The oil companies just laughed at that because they knew we wouldn't continue to "hurt" ourselves by refusing to buy gas. It was more of an inconvenience to us than it was a problem for them.

The following idea certainly makes much more sense and is a plan that can really work.

Please read it. By now you're probably thinking gasoline priced at about $1.50 is super cheap. Me too! It is currently $2.85 for regular unleaded, $2.95 for Plus and $3.05 for Premium in my town. Now that the oil companies and the OPEC nations have conditioned us to think that the cost of a gallon of gas is CHEAP at $1.50-$1.75, we need to take aggressive action to teach them that BUYERS control the marketplace.... not SELLERS!

With the price of gasoline going up more each day, we consumers need to take action. The only way we are going to see the price of gas come down is if we hit someone in the pocketbook by not purchasing THEIR gas! And THAT we can do WITHOUT hurting ourselves.

How? Since we all rely on our cars, we can't just stop buying gas, but we CAN have an impact on gas prices if we all act together to FORCE A PRICE WAR!

Here's the idea: For the rest of this year, DON'T purchase ANY gasoline from the 4 biggest gas stations: EXXON, MOBIL, SHELL and BP (formerly Amoco). If they are not selling ANY gas at all, they will be forced to reduce their prices. If they reduce their prices, the other companies will have to follow suit or else they won't be selling any gas. I personally have not bought gas from any of these gas stations in the last 6 months.

But to have an impact, we need to reach literally millions of Exxon, Mobil, Shell and BP gas buyers. It's really simple to do!! It is very simple to reach millions of people!! I am sending this note to at least thirty people I know. If each of you send it to at least ten more (30 x 10 = 300)... and those 300
send it to at least ten more (300 x 10 = 3,000), and so on, by the time the message reaches the sixth generation of people, we will have reached over THREE MILLION consumers!

If those three million get excited and pass this on to ten friends each, then 30 million people will have been contacted! If it goes one level further, you guessed it..... THREE HUNDRED MILLION PEOPLE!!! That is greater than the entire United States population.
Again, all you have to do is send this to 10 people and DON'T purchase ANY gasoline from EXXON, MOBIL, SHELL and BP. That's all.

How long would all that take? If each of us sends this email out to ten more people within one day of receipt, all 300 MILLION people could conceivably be contacted within the next 8 days!!! I'll bet you didn't think you had that much power and potential, did you! Acting together we can make a difference. If this makes sense to you, please pass this message on.

PLEASE HOLD OUT UNTIL THEY LOWER THEIR PRICES TO THE $1.30 RANGE AND
KEEP THEM DOWN. THIS CAN REALLY WORK IF WE ALL WORK TOGETHER AND REFUSE TO BUY GAS FROM THESE COMPANIES!

Ellengieinc, I think thats a great Idea and we need to start something, maybe you could clean up your article a bit where everyone could copy and paste it to be sent out as an email to all their friends. I know I for one am doing it on a larger scale than most people because I am buying 300 gals of desiel at a time,but now I only buy about 100 gals. This causes me to purchase fuel twice or more each week and I don't buy it from the same source so it helps to keep those tanks full in the ground. I will keep my eye out for another article from you or please PM me when you have something. Great stuff! Gator