Editing 1721: Business Idea

Jump to: navigation, search

Warning: You are not logged in. Your IP address will be publicly visible if you make any edits. If you log in or create an account, your edits will be attributed to your username, along with other benefits.

The edit can be undone. Please check the comparison below to verify that this is what you want to do, and then save the changes below to finish undoing the edit.
Latest revision Your text
Line 10: Line 10:
 
In this comic, [[Cueball]] announces he has "an exciting business opportunity to share". After hearing discouragement from his off-panel audience, he promises that "this time it's a good one", and goes on to explain his plan.
 
In this comic, [[Cueball]] announces he has "an exciting business opportunity to share". After hearing discouragement from his off-panel audience, he promises that "this time it's a good one", and goes on to explain his plan.
  
βˆ’
Cueball's plan involves the premise that a small amount of {{w|Octane rating|premium gas}} is left in a fuel pump hose after a car driver fills their car up with premium gas. Note that not all gas stations leave the fuel in the hose: many pump it back into the tank for storage. He states that even if the next customer only pays for regular {{w|Gasoline|gas}}, that they are still getting a small amount of the expensive premium gas. Though he doesn't get a chance to finish the outline for his plan, one can assume he planned to get premium fuel at regular prices, so he could then sell it for profit. After hearing the first part of his plan, two people from the off-panel audience announce they are leaving, clearly and correctly thinking that Cueball's idea is stupid and impractical.
+
Cueball's plan involves the premise that a small amount of {{w|Octane rating|premium gas}} is left in a fuel pump hose after a car driver fills their car up with premium gas. Note that not all gas stations leave the fuel in the hose: many pump it back into the tank for storage. He states that even if the next customer only pays for regular {{w|Gasoline|gas}}, that they are still getting a small amount of the expensive premium gas. Though he doesn't get a chance to finish the outline for his plan, one can assume he planned to get premium fuel at regular prices, so he could then sell it for profit. After hearing the first part of his plan, two people from the off-panel audience announce they are leaving, clearly and correctly{{citation needed}} thinking that Cueball's idea is stupid and impractical.
  
βˆ’
In reality, this would be an impossible business venture to execute. While in the United States often the same hose is used for the various octane fuels, the amount of fuel contained in the hose is relatively small (about [http://www.wsj.com/articles/SB122944043385810527 a third of a gallon], or [http://www.metronews.ca/drive/2012/05/08/one-pump-three-grades-how-does-it-know.html half a liter]) compared to the amount that is generally purchased, though [http://www.wsj.com/articles/SB122944043385810527 for motorcycles the ratio is more significant]. It is also illegal to resell fuel without the correct licenses, and it would be difficult, bordering on impossible, to have the fuel pump run to ''just'' the premium fuel out, and driving to each {{w|Filling station|gas station}} would use more money to buy more fuel than any money that could be made back. This is not to mention trying to keep track of when someone purchased premium so as to be the next person to use that pump to extract those precious drops.
+
In reality, this would be an impossible business venture to execute.{{citation needed}} While in the United States often the same hose is used for the various octane fuels, the amount of fuel contained in the hose is relatively small (about [http://www.wsj.com/articles/SB122944043385810527 a third of a gallon], or [http://www.metronews.ca/drive/2012/05/08/one-pump-three-grades-how-does-it-know.html half a liter]) compared to the amount that is generally purchased, though [http://www.wsj.com/articles/SB122944043385810527 for motorcycles the ratio is more significant]. It is also illegal to resell fuel without the correct licenses, and it would be difficult, bordering on impossible, to have the fuel pump run to ''just'' the premium fuel out, and driving to each {{w|Filling station|gas station}} would use more money to buy more fuel than any money that could be made back. This is not to mention trying to keep track of when someone purchased premium so as to be the next person to use that pump to extract those precious drops.
  
 
[[1499: Arbitrage]] implies a similar plan to extract wealth out of a small market inefficiency that, in reality, would be far too onerous to exploit, in this case reselling the free chips offered at some restaurants. The same idea was also used in [[1110: Click and Drag]] where a person takes [http://imgs.xkcd.com/clickdrag/2n2w.png free drinks to resell]. See also the ''[[what if? (blog)|what if?]]'' article ''{{what if|22|Cost of Pennies}}'' regarding why it would not be worth trying these kind of ventures out.
 
[[1499: Arbitrage]] implies a similar plan to extract wealth out of a small market inefficiency that, in reality, would be far too onerous to exploit, in this case reselling the free chips offered at some restaurants. The same idea was also used in [[1110: Click and Drag]] where a person takes [http://imgs.xkcd.com/clickdrag/2n2w.png free drinks to resell]. See also the ''[[what if? (blog)|what if?]]'' article ''{{what if|22|Cost of Pennies}}'' regarding why it would not be worth trying these kind of ventures out.

Please note that all contributions to explain xkcd may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see explain xkcd:Copyrights for details). Do not submit copyrighted work without permission!

To protect the wiki against automated edit spam, we kindly ask you to solve the following CAPTCHA:

Cancel | Editing help (opens in new window)