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You can buy gasoline cheaply because it is a commodity

25 Mar

The words “competitors” and “competition” imply you are selling a commodity that can be obtained elsewhere. Gasoline is a commodity. I know of some intersections in Sacramento that have three gas stations. I (and all the other drivers) can wait at a red light and see what the gas stations are charging for 87 octane gasoline. When I need 87 octane gasoline, I go to the cheapest provider. I see 87 octane gasoline as a commodity. No matter where I go for 87 octane gasoline. I know that I will be getting 87 octane gasoline. I cannot justify going to the most expensive provider for a commodity when someone else has a lower price just across the street. From Escape the Cubicle

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