Archive for July, 2008

According to ABC News (http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=8732039&ch=4226713&src=news), some gas stations are automatically changing the prices on the pump for credit card users. In the story, as soon as the reporter swipes her card, the price on the digital readout increases .08 more than the posted amount: From the posted amount of 4.27 to 4.35.

Station owners don’t profit from gas, but from in-store items. Some gas stations offer discounts for using cash, hoping while inside the buyer will pick up a soda or candy bar.

The price of gas has risen so high that the scope of what one spends has been lost. It’s easy to bait-and-switch someone who has become numb to the cost. Most consumers won’t notice the additional 8 cents per gallon.

Deceptive, yes. Illegal…can’t tell. I’m not sure if this qualifies as price gouging. However keep an eye on the rate at the pump and your receipts.

This story highlights gas stations in New York state, and there is no mention of how widespread this practice is.

At the more remote brothels in Nevada, truckers used to be big business. But with diesel prices rising, the cost of gas is cutting into their bottom line. Brothels are seeing business decline as much as 25% from last year, according to industry officials.

In order to combat the business downturn, the Shady Lady Ranch, a brothel that depends on long-haul truckers, is offering gas cards valued at $50 and $100. The card value is determined by how much the client spends.

With the right credit card, an enterprising trucker could get a gas card and get points/cash back up to 5-6% of their spend. Most of these cards offer additional points/cash back for vehicle maintenance, convenient stores, groceries—the BP Visa Rewards Card offers “2% rebates on all eligible travel and dining purchases”. I’m sure the brothel could code for that. Some brothels may even be considered a hotel/motel, in which case a Hotel credit card may work.

Of course this is speculation. I’m no industry official. I wasn’t even sure they take credit cards, but a quick phone call to the Shady Lady Ranch verifies they take all four: Visa, MasterCard, American Express and Discover. According to the Moonlit Bunny Ranch only take Visa and MasterCard.

The original story on the AP: High fuel prices put pinch on Nevada brothels