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painfulasterisk1@lemmy.ml 10 months agoI compare landlords to gas stations, if one increases the cost of gasoline for 0.20 USD overnight, believe me that the one less than a block away will follow suit in less than 6 hours.
Comment on [deleted]
painfulasterisk1@lemmy.ml 10 months agoI compare landlords to gas stations, if one increases the cost of gasoline for 0.20 USD overnight, believe me that the one less than a block away will follow suit in less than 6 hours.
throwwyacc@lemmynsfw.com 10 months ago
Only if the price is actually increasing. Otherwise you’d just sell cheap petrol and put them out of business
APassenger@lemmy.world 10 months ago
You’d go up at least 10 cents. Still worth it to cross the street, but more profit while it’s available.
throwwyacc@lemmynsfw.com 10 months ago
Right, but the in order for the other station to not go out of business they have to match. But are incentivised to beat that price by a further 10c to increase the amount of business they get See where I’m going?
APassenger@lemmy.world 10 months ago
If there’s competition, yes.
If there’s scarcity, where the supplier side has more leverage, the math changes. They may well just volunteer to make more profit.
Where I live, the difference of one block is 50 cents over two intervals. One number on this street, 50 cents cheaper a block further and another 50 cents cheaper another block down. $1 in difference.
They’re all in business and have been this way for years.