Ed Driscoll.com Ed Driscoll.com
GNAT LILEKS, GENIUS FINANCIAL ANALYST:“how
By Ed Driscoll · March 6, 2003 10:28 PM ·

GNAT LILEKS, GENIUS FINANCIAL ANALYST:

“how much did it cost to fill up, daddee? Because if it’s over twenty bucks for the first time in a long time you’re less inclined to go inside the station to get some high-profit items like soda or jerky, or buy a car wash ticket, right? And since the profit margin for gas on the retail level is constantly miniscule, and since high-profit items help repay the loans to the oil company that fronted you money for pumps, upgrades, canopies and the like - then aren’t these high oil prices hard on the individual stations, increasing their likelihood of defaulting on their loans from the company? Granted, they can take the hit from losing a station here or there, but might not this continual erosion of the consignee’s profit margin tempt them to switch to another brand who’d pay off the old loan, leading to market-share erosion? I mean, people think high gas prices are great for gas companies, but that’s a rather simplistic take. Isn’t this side-effect of high gas prices on the stations completely ignored by the press, which sees Big Oil as a monolithic octopus yanking all the levers with ingenious synchronization?”
Now that's one smart kid!

Comments


Since 2002, News, Technology and Pop Culture, 24 Hours a Day, Live and in Stereo!

(And every Saturday on Sirius XM Satellite Radio.)

What They're Saying

"Ed Driscoll does the important, difficult, work of keeping Western civilization afloat..."--Jonah Goldberg, National Review


Navigation
Weblog
Ed TV
Podcasts
Twitter Feed
Articles
Essays
Interviews
Links
About Me
FAQ
Photos

Home

Support the Site

Search

Archives
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004
September 2004
August 2004
July 2004
June 2004
May 2004
April 2004
March 2004
February 2004
January 2004
December 2003
November 2003
October 2003
September 2003
August 2003
July 2003
June 2003
May 2003
April 2003
March 2003
February 2003
January 2003
December 2002
November 2002
October 2002
September 2002
August 2002
July 2002
June 2002
May 2002
April 2002
March 2002

Etcetera


Bookmark Me!

Blogroll Me!

Steal This Button!

Syndicate this site (XML)
Podcasts Feed

AddThis Feed Button

AddThis Social Bookmark Button

youtube_logo.gif

Our Podcasts' Apple iTunes Page

Powered by
Movable Type 3.35

Site design by
Sekimori

Copyright © 2002-2008 Edward B. Driscoll, Jr. All Rights Reserved