A man can't run his own business in WI?
This is crazy!
Gas Station Who Gave Discounts to Elderly Ordered to Raise Prices
Wednesday, May 09, 2007
MERRILL, Wis. -
A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices.
Center City BP owner Raj Bhandari has been offering senior citizens a 2 cent per gallon price break and discount cards that let sports boosters pay 3 cents less per gallon.
But the state Department of Agriculture, Trade and Consumer Protection says those deals violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price.
Bhandari said he received a letter from the state auditor last month saying the state would sue him if he did not raise his prices. The state could penalize him for each discounted gallon he sold, with the fine determined by a judge.
Bhandari, who bought the station a year ago, said he worries customers will think he stopped the discounts because he wants to make more money. About 10 percent of his customers had used the discount cards.
Dale Van Camp said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.
Gas Station Who Gave Discounts to Elderly Ordered to Raise Prices
Wednesday, May 09, 2007
MERRILL, Wis. -
A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices.
Center City BP owner Raj Bhandari has been offering senior citizens a 2 cent per gallon price break and discount cards that let sports boosters pay 3 cents less per gallon.
But the state Department of Agriculture, Trade and Consumer Protection says those deals violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price.
Bhandari said he received a letter from the state auditor last month saying the state would sue him if he did not raise his prices. The state could penalize him for each discounted gallon he sold, with the fine determined by a judge.
Bhandari, who bought the station a year ago, said he worries customers will think he stopped the discounts because he wants to make more money. About 10 percent of his customers had used the discount cards.
Dale Van Camp said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.
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Easy way to get around that game would be to charge them full price, give them a card and when they get it fully punched, give them back something of value. Some Viagra for the seniors and sports equipment for the sports supporters.[:0][;)] 0 -
The "minimum mark-up" law in Wisconsin is crazy!
Free market, competition, capitalism ????!!
I love WI, but what a tax pit. You outta hear some of the ideas on the drawing board to tax us even more.0 -
Interesting, so if the wholesale prices increase, the station owner is required by law to make a larger profit, For instance say the wholesale price is $3.00 per gallon and required profit is 9.2% (.27 per gallon profit). If the wholesale price rises to $3.50 the profit rises to .32 per gallon. It reminds me of how Canada taxes fuel, it is also a flat rate. The higher the price the more tax is collected.
That seems fair, right?0 -
for what its worth i'm 4 blocks from that station (same street), Wis. also has a 'percentage gas tax', the higher the price the more they take[xx(] 0 -
If I'm not mistaken, the taxes on gas in WI are suppose to go towards keeping the roads in good shape, but judging from some areas the money isn't going towards that.
Jon0 -
quote:Originally posted by Jon0322
If I'm not mistaken, the taxes on gas in WI are suppose to go towards keeping the roads in good shape, but judging from some areas the money isn't going towards that.Jon
Perhaps its for the roads leading to and from the state senators/ congressmen's golf course and driveways to their summer homes. [V]0 -
Our government is INSANE. 0 -
its easy to forget but the purpose of business is to achieve revenue, not a love relationship with customers looking for bargains.
dont believe it? stop giving deals to customers and watch how fast they stop loving you.[;)]
end of story.0 -
The purpose for the law is to prevent huge sellers, like Wal-Mart or others, from selling gas at below cost in order to drive small competitors out of business leaving the market to them at which point they charge as much as they like. It sounds crazy but the minimum retail price is intended to preserve competition and ultimately keep prices lower. 0
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