Can anyone explain why Conway and Jonesboro gas prices are 10 to 20 cents less per gallon than of that Fort Smith?
Five Star:
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Lack of Competition?
Submitted by Jack Swink on Wed, 06/27/2012 - 2:27pm.
Randy, a salesperson in construction told me concrete go for as much as $10 to $20 more a yard in FS than in NWA. His answer was lack of competition in FS.
Good Question
Submitted by Good Question (not verified) on Wed, 06/27/2012 - 3:45pm.
Good question. I just checked on Arkansasgasprices.com. Murphy's in Conway is 2.95/gallon. Murphy's in Fort Smith is $3.11/gallon. Murphy's in Bentonville is $3.22/ gallon. Current national average price is $3.42/gallon. This is definitely not due to lack of competition. Every street corner in Fort Smith and Bentonville has a gas station on it. I think it may be due to capitalism. Businesses look to maximize profit. As long as no station in Fort Smith or Bentonville drops their price, none of the others will. That way they can make a whole lot more money.
Submitted by Jack Swink on Wed, 06/27/2012 - 5:47pm.
The interesting tidbit is Bentonville has a median household income of $50,000, Conway $46,000 and Ft Smith drags up the bottom, having the lowest median household income of surrounding cities at $33,000. The question would be how many suppliers does Conway have versus how many suppliers Fort Smith has?
Comments
Lack of Competition?
Submitted by Jack Swink on Wed, 06/27/2012 - 2:27pm.
Good Question
Submitted by Good Question (not verified) on Wed, 06/27/2012 - 3:45pm.
Another Good Question
Submitted by Jack Swink on Wed, 06/27/2012 - 5:47pm.
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