How do discount gas stations do it?
- Thread starter SteveD2
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I think that's asinine. Whenever I'm going through Oregon, I plan my trips so I do as much of my fueling as possible in other states!quote:
Originally posted by ZmOz:
Hey...in Oregon it's not even legal to get out and pump your own gas!I have yet to see a station where you can't pay at the pump...
As far as the selling below cost laws, they are generally poorly written and really aren't very effective when it comes to fuel sales. When I was in the business, we developed documentation were we would always show we were priced "below cost" in order to meet a competitor's price - this gives you an out. Also how do you define cost? (belive me there are several ways to define cost) Most of the laws don't get that specific thus they are very hard to enforce when push comes to shove. Overall I found the below cost laws stupid and they ended up costing the public more at the pump after all was said and done. The intent was alright but in actual practice they seldom worked and in most cases the public pays more. It really isn't that expensive to open a location to sell gasoline so if the big boys get too greedy then the free enterprise system still works and competitors will take note and eventually build a store up the street.
As far as profits, 10-12 cts/gal was a good pool average. That would be $8,000-$12,000 each month for a typical decent location. (Some high trafic locations could double that - so you see it can be pretty good) Inside figure another $12-15,000/month in gross profits from the pop, beer, snacks, etc.
I always liked to tell people that the State and Federal governments both make more $ on a gallon of fuel than the company operating the store. That helps to put it into prospective.
[ May 12, 2004, 11:30 PM: Message edited by: Cressida ]
As far as profits, 10-12 cts/gal was a good pool average. That would be $8,000-$12,000 each month for a typical decent location. (Some high trafic locations could double that - so you see it can be pretty good) Inside figure another $12-15,000/month in gross profits from the pop, beer, snacks, etc.
I always liked to tell people that the State and Federal governments both make more $ on a gallon of fuel than the company operating the store. That helps to put it into prospective.
[ May 12, 2004, 11:30 PM: Message edited by: Cressida ]
I was with the President of a fair sized independent this week (has 8 stations, distribution to a dozen more independents, and sales to companies and municipalities). He sends his tankers to fill at Texaco, Exxon, or Shell, depending on the best price at the moment.
I think the costco's have contracts for volume and no marketing..... Just as their ability to buy motor oil and sell it for less than the companies sell to their brand-name distributors.
I think the costco's have contracts for volume and no marketing..... Just as their ability to buy motor oil and sell it for less than the companies sell to their brand-name distributors.
just the other day, my dad went to a cheapie station cause he was about to run out of gas, and HAD to stop, got 5 bucks, moved, on, and his car started mis-firing 10 miles later. Water in the gas...800 bucks in repairs. Go cheapie gas station..quote:
Originally posted by ZmOz:
Fortuneately all the discount places around here are new and I use 87 octane.
The same thing can happen at a brand name station. Lastly, did he blame on coincidence/timing or was there really a diagnosis of water in the fuel. And out of curiousity how would you know water was in fuel unless you actually had it tested by a lab?quote:
Originally posted by Durrr:
just the other day, my dad went to a cheapie station cause he was about to run out of gas, and HAD to stop, got 5 bucks, moved, on, and his car started mis-firing 10 miles later. Water in the gas...800 bucks in repairs. Go cheapie gas station..quote:
Originally posted by ZmOz:
Fortuneately all the discount places around here are new and I use 87 octane.
Kestas
Staff member
Eljefino, why do you need to add dry gas to this exercise, or even shake the sample? All I ever do is draw a sample into a clear container. Water is immiscible in gas and naturally settles to the bottom.
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