Re: can cobol handle the handle?

From: Richard (riplin_at_Azonic.co.nz)
Date: 01/07/04 

Date: 6 Jan 2004 16:47:11 -0800

"JerryMouse" <nospam@bisusa.com> wrote

> This is obviously not the case with consumables - those companies use other
> tactics. For example, Rockefeller managed to drop the price of kerosene from
> $3.00/gallon to less than five cents within three years. In so doing, he
> dramatically increased his customer base (and destroyed the whale-oil
> business).

First of all your figures are wrong:

"""Standard Oil began in 1870, when kerosene cost 30 cents a gallon.
By 1897, Rockefeller's scientists and managers had driven the price to
under 6 cents per gallon, ..."""

But this wasn't just because he was a good guy and wanted to help
consumers:

""" ... and many of his less-efficient competitors were out of
business -including companies whose inferior grades of kerosene were
prone to explosion and whose dangerous wares had depressed the demand
for the product."""

It was also to drive the competitors out of the market - those making
kerosene, not just whale oil. Not only would that low price drive
existing manufacturers out, but it acted as a barrier from anyone else
entering the market. Standard Oil could make a profit at that price
because they had large volumes and a captive distribution network, but
also kerosene is a byproduct of petrol production which was increasing
at about 40% a year and so the total kerosene market had to be
increased otherwise it would be a waste product.

The 1870s was also a highly deflationary time when prices for
everything fell.

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