Gas Price Venting

Beginning in January of 2008, the price of oil has gone up substantially, breaking every record. Not surprisingly, the oil companies made record profits in the 1st AND 2nd quarters of this year!

By the end of May (2008) the price of oil per barrel was $130 and climbed as high as $142 in June. Since that hike, the prices have begun to come back down. Finally, the price has begun to drop. The price of oil has dropped every day for the last 20 days.

Today (right now) (this instant) the price is $120 per barrel. You’d think that gas prices would drop with the oil prices, right? Of course not! Why would they?
I watched a news report last night on this very topic. The reporter was investigating why the price of gas in Utah is still above the national average.

Today, the national average for regular gas is: $3.84 per gallon.

Here’s an idea of what people are paying for regular gas around the country today (per the iea.doe.gov):

California: $4.20
Colorado: $3.89
Florida: $3.88
Massachusetts: $3.85
Minnesota: $3.61
New York: $4.10
Ohio: $3.68
Texas: $3.76
Utah: $4.15
Washington: $4.14

The #1 reason the local gas companies touted for not lowering the price of gas in Utah was this: We bought the gas at the higher price and that’s what we have in stock. Once we get the new gas in at the new price, we can pass that on to the consumer.

What!?!?!?
So let me get this right: When the price of oil went up, we saw the cost hike at the pumps the VERY SAME DAY. Those gas companies didn’t say, “well, the gas we have in stock was purchased at the lower price, so we will keep it low until the new gas price comes in then pass it on to the consumer.”

On the news, the reporter finished her report with something to the effect of, “So hang in there. The gas prices will catch up. And that’s good news, something to look forward to.” Wow! Thanks KSL! You’re the best! Way to help me keep my chin up.

So if you’re bugged by your gas prices, hang in there, it’ll catch up and before long, you’ll be paying what you should – but by then the national average will have dropped and you’ll still be paying more than that at the pump – but keep your chin up and hang in there.

Wanna Save Money at Costco?

Costco is one of the only places I go to shop for food items I know I can stock up on. The idea, of course, is to save money by buying in bulk. Did you know there are a few "signs" to watch for when shopping at Costco that can save you some mullah? Here's the low down:


#1 - The ASTERISK - Look at the price sign. If you see an asterisk it means the items will be discontinued soon. Think you might want that item? It might not be there next time, so get it now if you like it.


#2 - The CENTS - if the price of the item ENDS in as $.99 or $.95, it means the price is at it's highest possible mark up (which for Costco is 13%).

If the price ends in anything other than $.99 or $.95 or an even dollar amount (i.e. $.97 or $.96) it means the price has been dropped by the maker of the product (possibly because it might be discontinued at the location).


#3 - If you see a PLUS SIGN in the right hand corner of the price sign, it means this product is a test product. Meaning it's being tested for the demographic. So if you like it, buy it so it will continue to be available at the location. (this is why you can go to one Costco and find one product but another Costco might not carry it).


#4 - If the price is an even dollar amount (i.e. $10.00 or $23.00) it means the price has been marked down by the merchandising manager. This manager has the authority to mark prices down as much at 50%!
It can indicate a few things: 1. This was a floor model; 2. the item isn't selling so they are trying to move product; 3. they are making room for an updated product.
On larger items (furniture, computers, etc) you can negotiate a price with the merchandising manger (only) - ask for $10 or $15 more off the discounted price. They might do it.


#5 - The lowest price of clothes is found on the center table in the middle of all those tables of clothes. Start there and work your way out for the best deals on clothes you find.


#6 - Seasonal items - Costco (like most retailers) likes to stay ahead by a full season, so plan ahead.
Certain seasons present better deals on items:
Late Winter - Furniture deals are best
Late Spring - Lawn & Garden
July 4 (yes, it's a season) - Furniture
Early Fall - Fall Holiday items (Halloween, Thanksgiving)
Mid Fall (October 1 - End of Dec) - Christmas items

So these are the tips I learned from a fellow class mate of mine. Her husband is a merchandising manager and these are public tips, so no insider trading going on here. Hope it helps all of you Costco shoppers!