If the FBO owner could forecast the future price of fuel accurately, he
wouldn't be running an FBO.
Mike
MU-2
"G.R. Patterson III" wrote in message
...
Dennis O'Connor wrote:
Our airport manager says he is letting the tanks go nearly to empty
before
ordering another load, because he will have to raise the price
significantly
once he does..
I don't think much of that logic. If he then buys a full load of gas at a
higher
cost and the supplier lowers the price a few weeks later, he needs to
charge
higher prices for quite some time before he sells enough to need to refill
his
tanks. He runs the risk of pricing himself out of the market for a while.
If I
were doing it, I would buy as little as possible while the supplier's
prices
are high. And, yes, I have seen avgas prices go down as well as up.
Most of the airports in this area let the tanks go nearly dry because they
get
price breaks for quantity purchases. I understand that there's a large
discount
if you buy an entire trailer full at a time. Maybe that's what he's trying
to
do.
George Patterson
A diplomat is a person who can tell you to go to hell in such a way
that
you look forward to the trip.
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