[DMCForum] Re: O/T Gas Prices in California reach $4.10 per gallon today

["therealdmcvegas" <dmcvegas@xxxxxxx>]

You've got to remember something here. Gas stations don't make their
profits by fuel sales. Their money is actually made inside of the
convience store portion. The competition is based this way: People
WILL NEED to buy fuel. But they're betting that when you stop by to
refuel, that you're going to get out of your car, and walk inside and
purchase a drink, chips, or whatever else they have for sale inside.
Which is why you'll see so many of these places tethered to some other
sort of business. Such as a franchise, or independant fast food
outlet, slot machines (for appropriate states) or even a lube or car
wash building.

Now, you do have to be careful about one thing. Many times you'll see
some gas station with low fuel prices. And that's great. BUT BEWARE!
Since these places may even lose profit selling cheap gas, the low
prices may very well be a "cash-only" price. Meaning that if you don't
get out, and walk in-side to pay with cash, they will peanalize you
with a transaction surcharge. Around here it's about 75¢. Because if
you go inside, you're more likely to buy snack item with the change
you recieve, and increase the owners profits.

A gas station is nothing more than a liquor store with a hook to get
you to stop by. But it is true that the distributor also sets the
price. And it is at their descrition as what they can dictate that it
MUST be sold at (some states even have laws regulating this). There
was a case with one gas station owner here in Las Vegas who chose to
close his business. He was on the expressway offramp, and had a good
location. But Texaco told him that because of his location, he was
going to have to remain 9¢-12¢ higher than the competition down the
street. Needless to say, no one stopped by, and the guy was losing
money. So while he had like a year or so before the property was going
to be demolished for freeway expansion, he went ahead, and closed up
shop early.

Now to add to this, I'd reccomend checking out your local
Phillips/Conoco/Unocal station. If you stop inside and purchase some
of the items for sale inside the convenince store like chips, soda,
snack cakes, or beer, they'll take like 1¢-3¢ of each gallon of fuel
(gas or diesel), and will also let you combine the items together for
like 7¢ off each gallon you pump. Not 100% sure of how it works, but
will be trying this plan on my next fill-up. But in the mean time,
here's a link:

http://www.tankbankrewards.com/index.htm

-Robert



--- In DMCForum@xxxxxxxxxxxxxxx, Marc Levy <malevy_nj@xxxx> wrote:
> So, is he saying that he was ripping people off?
> 
> Prior to this last rise in fuel prices, NJ was
> considered one of the less expensive states for gas
> (due to our lower road tax, and mandatory "full
> service").  This is no longer the case, but the local
> radio morons like to call up owners of gas stations to
> talk to them about the prices.
> 
> The claim (by the owners) was that the suppliers
> charge them differently based on their location.  So,
> while WaWa and the "Cheap stations" are at about $2.35
> today, the name-brand stations are at $2.49 and claim
> they are still making the same $0.10 per gallon profit
> they have always made...  Well, if this is the case it
> will soon be hard to make money in the consumer fuel
> market because if the profit-per-gallon is fixed, the
> percentage profit of the business is on a rapid
> decline.
> 
> So, the question is...  How much PROFIT is the guy
> making at $4.10 a gallon??  Because maybe the oil
> companies are charging him a premium based on his
> location.
> 
> --- Jeremiah Montee <angelito03299@xxxx> wrote:
> 
> > That butthead needs to be shot. $4.10/gal is almost
> > unforgiveable.  He was intervieweed on CBSnews.com
> > and
> > he informed people "Gas this far out is a privilege
> > and people tend to forget that".  Oh please...I got
> > your privilege...
> > 
> > Jeremiah
> > 
> 
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