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painfulasterisk1@lemmy.ml 6 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 6 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 6 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 6 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 6 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 6 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.