Skip to content

We don’t make money selling gasoline!

July 22, 2013

ichart

 

According to data collected from census.gov site, gas station operators are enjoying increasing level of profits. It is not disconcerting profits for these operators are climbing. What is troubling is their hypocrisy and obvious price fixing.

The claim gasoline sales is not profitable, is not true. Furthermore, the claim margins are so low for gasoline it a loss leader to attract buyers into their over-stuffed kiosk-style cashiering sites (aka: store), is not true. If that were true, why would they have added the credit card swipe to the gas pump. I can not remember the last time I ventured into a store.

To accept their claim gasoline margins are near zero  requires proof margins are expanding for store sales. The largest volume sales for gas station operators is gas, lottery tickets, cigarettes/beer. And they have voluntarily deprived themselves by letting credit card transactions happen at the pump and not drag foot traffic into the store. Really?

Price fixing is evidenced by a simple of comparison of prices on each of the four corners of any intersection in the U.S. Ever see a price war break out there? How about comparing the prices in wealthier neighborhoods to prices in lower socio-economic areas.

Any operator in a capitalist endeavor should be encouraged to maximize profits, the conditional is fairly.

Advertisements

From → business, Strategy

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s