PPRuNe Forums - View Single Post - Why isn't Avgas getting cheaper ?
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Old 20th Nov 2008, 19:15
  #23 (permalink)  
batninth
Oh Shazbat!
 
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Guys, I'd be interested in your business case for reducing the price of a niche commodity where the volume sold did not appreciably change despite a 50% rise in prices?
Ah, price elasticity I believe. Of course, if we listen to Mr Porter, there is always the threat of competitive pressure, so your business case holds as long as you're the only player in town. But when the airfield only a few miles away drops it's prices then your cost per litre holds but on very few litres sold.
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