• Who sets a dealer's retail prices?

    The dealer sets his own prices. See the previous question. The reality is that prices are determined indirectly by large companies operating in a free market. We are supplied with gasoline by Circle K. They have several thousand locations. In Peoria, most are BP. They set the prices in their stores. They have a great degree of influence over our prices because exactly the same product we sell is marketed by Circle K in locations a mile or so away. In larger cities this also happens with major oil companies operating locations themselves. Prices are set by the oil company in their retail stores which in turn controls street price. The dealer's cost is determined by the oil company. In the above example dealer selling price is indirectly determined by the oil company. If the dealer does not follow, he won't sell any product.


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