Ummm, whats going on?

[jmac00]

So we all know that fuel prices are sky rocketing.

So I have a question:

Lets say a gas station receives a shipment of fuel on Sunday night. Lets say the shipment is for 100,000 gals and the gas station owner posts the price @ 50¢/gal.(ya, I'm still living in 1970)

Now Monday morning rolls around and the stock market gets the Libyan jitters and the price per barrel goes up 1 dollar. so Mr Gas Station owner increases his price Monday afternoon to 75¢ citing increased cost per barrel. On Monday Mr Gas Station owner sells 10,000 gal. He now has 90K gallons left in the tank that he bought at 50¢/gal.

Tuesday rolls around and the stock market gets even more jittery about the conflict in Libya and the price per barrel goes up some more. So Mr Gas station owner increase his price at the pump to $1 per gallon. Yet the gas in the tank was bought at 50¢ and is still at 50¢. On Tuesday Mr GSO sells another 10K gal

Wednesday rolls around and a bird poops on an oil tank in Libya and the price of a barrel goes up again. So Mr GSO raises his price again, on the same gas he bought at 50¢ three days ago?

anyone see what I'm getting at here? The gas in the tank is still at 50¢/gal, yet Mr Gas station owner raises his price on a Fantasy

Gas station owners are crying they are going broke, they only make a couple pennies per gal...........BS

some one is getting rich while the rest of us are going broke:gah: this is crap :gah:

[Stamas]

Yet people still pay $1.50 for a 16oz bottle of water.

[jmac00]

Yet people still pay $1.50 for a 16oz bottle of water.

the point being the price remains stable. The price doesn't increase on a whim every 6 hours

[GT Jets]

Your paying for the fuel to replace the fuel in the tank, not the fuel in the tank.

Gasoline and diesel is bought in lots. Normally the stations are about two weeks ahead of you buying the fuel in the tank. This is why the fuel price jumps so quickly.

Gas stations don't make a bunch of money on fuel, this is why 90% of all gas stations sell beer, cigarettes and snacks.... :cheers:

Truth is, the government makes as much money off of fuel sales as the stations.... In case you think I am FOS... http://www.gaspricewatch.com/usgastaxes.asp


GT

[jmac00]

Your paying for the fuel to replace the fuel in the tank, not the fuel in the tank.

Gasoline and diesel is bought in lots. Normally the stations are about two weeks ahead of you buying the fuel in the tank. This is why the fuel price jumps so quickly.

Gas stations don't make a bunch of money on fuel, this is why 90% of all gas stations sell beer, cigarettes and snacks.... :cheers:

Truth is, the government makes as much money off of fuel sales as the stations.... In case you think I am FOS... http://www.gaspricewatch.com/usgastaxes.asp


GT

that would only be true if the Gas station got a shipment everyday. but they don't

[GT Jets]

that would only be true if the Gas station got a shipment everyday. but they don't

Trust me on this, I have worked at a service station (back when they called them service stations), stations aren't who's making the big money....The refinery owners are.

Otherwise you would see a whole lot more stations owned by big oil....

There are only two oil company owned stations in my neighborhood, one BP and one Chevron. All others are franchised or private.

By the station raising prices by a dime, they don't stand to make too much more profit because there are normally stations on three of four corners due to zoning limitations...

GT

[midhvac]

Gas is going up now. But the station owners claim they get hammered when it goes down. And no those folks aren't doing well. The money's all flowing to the upper parts of the ladder. But all we can see is the $$$$ signs at the station, rather than the real greed.

[cjpwalker]

:putergreet:

[jmac00]

your assumption is that gas price will drop as fast as they went up, they won't.

Im sure the GSO will survive

[cjpwalker]

They did a couple of years ago... went from over $4.00 to 1.50 in just a few weeks. It didn't last long, but it sure took me back to the old days...

[ZeroTolerance]

More idiots need to buy diesel vehicles so I don't have to pay $3.79 a gallon for diesel which costs less to produce than gas. 34gallons a week is eating my wallet!!!!!!!!!!!!!!!!!!!!

[jmac00]

maybe I'll switch to Natural gas :whistle::cheers:

[cjpwalker]

More idiots need to buy diesel vehicles so I don't have to pay $3.79 a gallon for diesel which costs less to produce than gas. 34gallons a week is eating my wallet!!!!!!!!!!!!!!!!!!!!

Sorry, can't afford the fuel or the $100 oil changes, or repairs: $600 water pump, $1200 clutch, 1500 watt block heater so I can drive it in the winter, etc...

Granted they do sound cool, and will haul heavy things up big hills quickly. But honestly I also can't afford heavy things to haul quickly up hills right now.

[cjpwalker]

mmm... diesel!

http://www.youtube.com/watch?v=uOj6gPwkiXg

[wolfem]

hmm

[REECHMAN]

More idiots need to buy diesel vehicles so I don't have to pay $3.79 a gallon for diesel which costs less to produce than gas. 34gallons a week is eating my wallet!!!!!!!!!!!!!!!!!!!!
High diesel prices are supposedly due to India and China using all of it to build up their countries. When I bought mine back in 05, diesel was 1.39/gal, 30 to 40 cents cheaper than gas. It stayed that way for awhile then I think the oil companies said wait a minute, we forgot about diesel. And the rest is history.

[jmac00]

I guess we are in a no-win situation :nopity:

[ZeroTolerance]

I use my diesel unlike some people. Even though that diesel smoked like hell in that video its still cleaner than gas. You only have to repair it if you don't maintain it properly. I change oil, air filter, and fuel filter every 5000miles. Oil changes are free so far and air filter + fuel filter cost me a total of $70. When I have to start paying for my oil changes I will probably pay $120 for everything. Not bad I love my diesel :)

[stephy]

Well so we're getting bent over again.......

So what is it this time? The Libyan unrest ? They account for less than 1% of what we use.......

If yall remember the last time the reason was our lack of refineying........

I live in a VERY rural part of our country, this has a tremendous effect on our local ecomemy........

Not good.....

[cjpwalker]

I use my diesel unlike some people. Even though that diesel smoked like hell in that video its still cleaner than gas. You only have to repair it if you don't maintain it properly. I change oil, air filter, and fuel filter every 5000miles. Oil changes are free so far and air filter + fuel filter cost me a total of $70. When I have to start paying for my oil changes I will probably pay $120 for everything. Not bad I love my diesel :)

The video was for fun, and it is kind of fun to watch that "rollin' coal" as long as your not down wind of it :).

If I had a use for a diesel i would buy one. I don't own the service van and the boss has made his decision there. At home the groceries and the kids fit in the v6 minivan or the v6 explorer just fine. Can't justify anything else.

That's great that your oil changes are free. Usually 12-14 quarts of delo and a big ol' filter are pretty spendy. Depending on the rig, fuel filters and air cleaners are pricey too.

[sarge]

My 1.9L TDI 2005 New Beetle does great on fuel. 40 MPG diesel is pretty good. Plus, it hauls ass! (not from a dead stop, but at 80-90 mph it can jump over 100 mph pretty quickly)

[ZeroTolerance]

Only have one more free oil change :( And to be honest I get 14MPG in the city and 19MPG on the Highway with my big diesel. Not bad for its size and weight. I traded in my wife's Denali for my diesel and have got **** for it ever since. Got her a 2.5L SL Altima as a replacement. Everytime we get in an argument I hear about it lol

[REECHMAN]

I use my diesel unlike some people. Even though that diesel smoked like hell in that video its still cleaner than gas. You only have to repair it if you don't maintain it properly. I change oil, air filter, and fuel filter every 5000miles. Oil changes are free so far and air filter + fuel filter cost me a total of $70. When I have to start paying for my oil changes I will probably pay $120 for everything. Not bad I love my diesel :)
Fuel filter for 7.3 power stroke is 20.00, Air filter K&N one time. Use either Mobil Delvac or Rotella oil, watch for the sales. Do it yourself, Auto Zone will take the used oil.

[ZeroTolerance]

Ford :/ Cummins surpasses all my friend! I use Rotella In my street bike good SHEET

[REECHMAN]

Ford :/ Cummins surpasses all my friend! I use Rotella In my street bike good SHEET

Old Cummins I agree, better mileage for sure than p stroke. I don't know about these new ones they keep changing.

[ZeroTolerance]

They keep changing thanks to the wonderful EPA :). The engines themselves have not changed much just the BS that the EPA requires to add to them. The 2007-2009 Cummins have issues with regeneration. Mine.. They have apparently fixed the problem

[Silver06]

Have an '06 Cummins and '06 Jeep Liberty CRD diesel. I do all my own oil changes and maintenance, oil, fuel, and air filter and (3) gallons of mobil delvac is less than $100. Like they said, watch for the specials.

Now the '03 6.0 PowerStroke I had before, lets not go there.:gah:

[ZeroTolerance]

^ hehe did your exhaust shoot flames out of it?

[REECHMAN]

Have an '06 Cummins and '06 Jeep Liberty CRD diesel. I do all my own oil changes and maintenance, oil, fuel, and air filter and (3) gallons of mobil delvac is less than $100. Like they said, watch for the specials.

Now the '03 6.0 PowerStroke I had before, lets not go there.:gah:

Turbo problems?

[Silver06]

^ hehe did your exhaust shoot flames out of it?

Nah, just CPS seals, rear main seal, C94 injectors, coolant tank puking, wiring harness in 5R110 transmission. And no, this truck never had a chip or any kind of modification. Bought it new with 62 miles on it.

Should have known better than to get a first year engine. They still offered the 7.3. Oh well, you live you learn.

[ldmth44]

PRICING: I worked for oil company owned service stations for 15 years. Dealers/operators don't have control over pricing and they do only make cents on the gallon. Fuel is bought ahead of time, but pricing is based on demand, market conditions, world conditions, and pricing in a particular sales zone. Ever notice some stations in a geographical area are closely priced but go across town and their prices may be higher or lower due to a certain stations immediate competitors regardless if they sell same brand of fuel. Dealers, and company owned stores, generally survey their "zones" daily (usually done by oil company sales reps, or station managers, that have brand dealers under their control, for example, and prices are set accordingly.)
VOLUME: Unless a particular service station has a very high sales volume of fuel, it may not be profitable. Independent dealers struggle to make $$$ on fuel sales due to low volume. (Ever see established repair shop owners that used to sell gas? Depending on lease agreements, they may have gone out of business, or bought the oil company out of the property and run their repairs out of that shop, they only do repairs and sell no more fuel due to lack of volume and maintenance costs associated to keep fueling equipment up to snuff--EPA regulations are strict and tough, very costly for an independent. The profit is not there to continue selling fuel.) Look how the oil companies have taken over the convenience store industry. Profits are from high volume fuel sales, store sales profits, etc. These store are stratigcally placed to maximize a strong, profit making site.
FOUL: But it is ridiculous when every time there is a wind blowing in any oil producing country, the prices spike, production is limited to force demand down and prices up, until the unrest levels off. But, stop complaining! The US still has the LOWEST prices for a gallon of gas in the world--could be worse! Would you pay $8-$10 a gallon? Look at Europe!
SUPPLY & DEMAND: Keep in mind that these prices are results of the unrest in the Middle East from a few weeks ago, not overnight. Oil is bought on futures pricing and the costs are set due to the oil producing countries situations at that time. Demand is way up for oil as well due to China becoming a major user, thus contributing to higher pricing as well. The trickle down effect takes a couple of weeks to hit the pump in our area.

[ZeroTolerance]

So was it ever "Found on Road Dead"?

[REECHMAN]

So was it ever "Found on Road Dead"?

First On Race Day. It sucks that you have a Dodge truck wrapped around a good Cummins engine.

[ZeroTolerance]

Haven't had one problem yet and I have owned dodges before. As have my parents, in laws, etc with no problems.
Only problem I have had with a dodge is that two months after I bought this one my 02 4.7L decided to hydroplane into the back of a box truck going 50MPH :P

[Silver06]

So was it ever "Found on Road Dead"?

:grin2: No, but almost. I was about 1/4 mile away from the dealer when the transmission wiring harness decided to somehow get rubbed through. It shifted to the dealership, but dang, it must have been some kind of failsafe mode. Jerked your neck each time it shifted. Came from a blue oval family, but having oil drip constantly from your year old truck did it for me. Ordered the '06, and have loved it ever since. Miss the heavier gauge sheet metal, and the leaf spring front end, but, Ford did away with that after '04 anyway. Love the helical limited slip, no clutch packs.

Let's just say my dad was not a happy camper seeing me drive BRAND X:grin2:

[ZeroTolerance]

I feel bad for Ford owners. My parents owned a station wagon back in the day POS. Cheap made still to this day

[ldmth44]

:hijacked:Guess this thread got hijacked!!!
The pickup is the reason gas prices went up, so much for intelligent discussions:payattention:

[REECHMAN]

Haven't had one problem yet and I have owned dodges before. As have my parents, in laws, etc with no problems.
Only problem I have had with a dodge is that two months after I bought this one my 02 4.7L decided to hydroplane into the back of a box truck going 50MPH :P

Ouch, Nah I'm just kidding you, my brother has a 04 dually with a cummins it's a good truck. It was pretty cool when we were both pulling campers running side by side rolling the black smoke.

[Silver06]

I feel bad for Ford owners. My parents owned a station wagon back in the day POS. Cheap made still to this day

Like this one?

[REECHMAN]

:hijacked:Guess this thread got hijacked!!!
The pickup is the reason gas prices went up, so much for intelligent discussions:payattention:

"If it were'nt for trucks we wouldn't have tail gates", Joe Diffie.

[REECHMAN]

:hijacked:Guess this thread got hijacked!!!
The pickup is the reason gas prices went up, so much for intelligent discussions:payattention:

DRILL HERE! DRILL NOW!

[ZeroTolerance]

Im sad.... My truck doesnt black smoke :( I was looking forward to the black smoke but NO :(

[REECHMAN]

Im sad.... My truck doesnt black smoke :( I was looking forward to the black smoke but NO :(

You sure? Is it because of all that recirculation bull****? I know some of the big trucks don't smoke anymore either.

[REECHMAN]

Im sad.... My truck doesnt black smoke :( I was looking forward to the black smoke but NO :(

After it's out of warranty, chip it, then it will.

[ZeroTolerance]

Ya, thats what I was planning on doing. Blocking off EGR and all the other BS and chipping

[JimmyM]

So we all know that fuel prices are sky rocketing.

So I have a question:

Lets say a gas station receives a shipment of fuel on Sunday night. Lets say the shipment is for 100,000 gals and the gas station owner posts the price @ 50¢/gal.(ya, I'm still living in 1970)

Now Monday morning rolls around and the stock market gets the Libyan jitters and the price per barrel goes up 1 dollar. so Mr Gas Station owner increases his price Monday afternoon to 75¢ citing increased cost per barrel. On Monday Mr Gas Station owner sells 10,000 gal. He now has 90K gallons left in the tank that he bought at 50¢/gal.

Tuesday rolls around and the stock market gets even more jittery about the conflict in Libya and the price per barrel goes up some more. So Mr Gas station owner increase his price at the pump to $1 per gallon. Yet the gas in the tank was bought at 50¢ and is still at 50¢. On Tuesday Mr GSO sells another 10K gal

Wednesday rolls around and a bird poops on an oil tank in Libya and the price of a barrel goes up again. So Mr GSO raises his price again, on the same gas he bought at 50¢ three days ago?

anyone see what I'm getting at here? The gas in the tank is still at 50¢/gal, yet Mr Gas station owner raises his price on a Fantasy

Gas station owners are crying they are going broke, they only make a couple pennies per gal...........BS

some one is getting rich while the rest of us are going broke:gah: this is crap :gah:

Answer this:
On Thursday when that big underground tank runs dry how much will Mr. GSO pay to refill it? And where is that money going to come from?

[edward301]

When you buy gas you are paying for the replacement cost of gas. Yes
when stations pay one price per gallon, and the price goes up, they do
make some extra profit, but some of that is lost when gas prices go down.
Sure stations are slow to lower prices, but they still loose.

Stations usually make 15 cents per gallon profit, but credit card fees
consume 1.6% of that, and most pay with credit card.

The big money makers are refineries, and speculators.

[Control Man]

Here this morning Gas is $4.65 / US gallon and Diesel is $4.92 / US gallon

Guy that owns the corner store /gas bar , told me he gets a few PENNIES per litre regardless of $at the pump it does not vary.

The fuel is owned by the fuel suppliers and they recently revamped his pumps , tanks ecte at their cost and they pay the utilities for the pumps lights ecte at the gas bar. Supposedly this is the new way of doing things as the older gas bars get revamped.

[secorp]

Profits of .15 cents was not what I was told.

Most stations are indeed franchised. If you own several in the area you can get bids from Shell, Texaco, BP or whomever and get maybe .4 cents on the dollar. A single one station owner may have to settle for a fraction of a penny, just enough to pay the power bill to run the pumps and lights. The single station owner needs the gas to get you in the parking lot them maybe in the door. that's why station owners put discounts on coffee on the pump to get you inside.

The single station owner needs speculators to know how to price their gas. speculators are the ones that drive the price of oil up without them gas stations would go out of business. most single owner stations do not have the cash on hand to absorb leaving the price alone until the next batch order.

[John Markl]

Buddy of mine runs a Shell station here.....4 cents per gallon is his cut.....and his distributor dictates the pump price(s)....

Gas is just to get you in the door. He depends on auxillary sales to keep the doors open.

[jmac00]

Buddy of mine runs a Shell station here.....4 cents per gallon is his cut.....and his distributor dictates the pump price(s)....

Gas is just to get you in the door. He depends on auxillary sales to keep the doors open.

well they ain't going to make a dime on me, I don't buy anything from the store, around here Griffith Oil delivers to ALL the gas stations regardless of the name on the sign. which I have never been able to figure out? If one company is delivering to all the stations, how does the price vary so much.

[secorp]

If one company is delivering to all the stations, how does the price vary so much.

If you own more stores you can get a better deal on the price, all the stations in your area are not equal.

[jmac00]

If you own more stores you can get a better deal on the price, all the stations in your area are not equal.

no kidding.

I got to figure out a business that doesn't require me driving anywhere.

Like stock broker, or Romance Novelist.

I should have married someone with money, either that or the wench is going to have to get a third job :grin2:

[uniservice]

So,,how do you price the parts in your service truck? You bought the part for $10. Mark it up to $20, put it in the truck. Somehow it doesn't get used on the job that it was purchased for and you haul it around in the truck. A couple of years later, you need the part on a call, vaguely remember having it on the truck, can't recall what you paid for it, so you call the distributor, he tells you the part sells for $20. You sell it at $40. where's the problem? Same thin with refrigerants. I've got r-22 that I paid $$$$ a jug for. I'm certainly not selling it for what I was selling it for in 2002.

[ldmth44]

If you own more stores you can get a better deal on the price, all the stations in your area are not equal.

Pricing in a particular area , or "zone," is set by what your competitors in that zone are doing. As I said in a previous post, diligent pricing surveys are done frequently to check what your competition is doing, thus the prices for that zone are set. That's why one side of town might be different from the other, depends on what your local competitors in your zone are doing. Disparity from stores across the street from one another depends on when the fuel supplier psses on its price change to the dealer (say at the next tanker delivery), but evetually they come into line with each other. If anyone is making 15 cents per gallon, their prices must be way up from their competitors and their business will suffer. Average profit can range be more like 7 cents per gallon, depends on current pricing, volume, local taxes applied, credit card fees, etc. Its not as simple as people think.

[pdrake65]

So,,how do you price the parts in your service truck? You bought the part for $10. Mark it up to $20, put it in the truck. Somehow it doesn't get used on the job that it was purchased for and you haul it around in the truck. A couple of years later, you need the part on a call, vaguely remember having it on the truck, can't recall what you paid for it, so you call the distributor, he tells you the part sells for $20. You sell it at $40. where's the problem? Same thin with refrigerants. I've got r-22 that I paid $$$$ a jug for. I'm certainly not selling it for what I was selling it for in 2002.

Sorry to go off topic here , did you say that you have a jug of R22 that cost you $$$$ ?!? Was it ever that cheap in the last ten years?

[ZeroTolerance]

Cheapest I found was $$$$$ at Locke Supply. And when I found out it was that cheap I almost had a heart attack! Sick of paying $$$$

[mcr]

Cheapest I found was $$$$ at Locke Supply. And when I found out it was that cheap I almost had a heart attack! Sick of paying $$$$
I've been getting it a $$$$$ at Johnstone.

[uniservice]

2002, summer. $$$$$ bought 20 jugs. used last one summer of 2010. That was my own private stock. Company purchased a lot more than that, but I just used it for small jobs. When I'd hit a big user like a boat, I'd purchase at the going rate. Bought it from A plumbing company that was selling Amana at the time. Since then they have halted all HVAC business and sell only plumbing again.

[secorp]

Pricing in a particular area , or "zone," is set by what your competitors in that zone are doing. As I said in a previous post, diligent pricing surveys are done frequently to check what your competition is doing, thus the prices for that zone are set. That's why one side of town might be different from the other, depends on what your local competitors in your zone are doing. Disparity from stores across the street from one another depends on when the fuel supplier psses on its price change to the dealer (say at the next tanker delivery), but evetually they come into line with each other. If anyone is making 15 cents per gallon, their prices must be way up from their competitors and their business will suffer. Average profit can range be more like 7 cents per gallon, depends on current pricing, volume, local taxes applied, credit card fees, etc. Its not as simple as people think.


To be sure nothing is ever simple, it is just our attempt to make it so.

If you are making 4 cent per dollar you have more profit room, the Franchise owner across the street from the .4 cent owner is making 1/2 a penny per dollar so he/she has to charge the most he/she can. the guy across the street can undercut his competition a penny and get more buss. the 1/2 penny owner may have to take a loss and drop his price to match or go out of business. The multi atation 4 cent owner also has the ability to drop his price at all his stores.

If one owner buys the same product cheaper then the other person he/she has the ability to use that buying power if he/she so chooses. the cost of credit card fees is a separate charge from the oil price. and that is also negotiable. Should you own ten stores and generate much more charges then the single station owner, that owner has more bargaining power. the Walmart effect has been around forever.




PS. I just priced two jugs R-22 for $$$$$ even.

[Dad]

Hey guys... this isn't a Pro area so watch the parts pricing chat, OK?

[jmac00]

well this has turned into an interesting topic, but your going to have to go a long way for me to believe a GSO is making pennies on a gallon of gas and they make most of there money on store sales of groceries and coffee.

ie: if 10 cars pull in to fill up, I bet only 2 or 3 will actually go inside to purchase anything (other than gas)

at pennies on the gallon that would be equivalent to us making 10 bucks on every furnace we sell, it simply does make any sense to stay in that business. Especially if you start to figure in payroll and overhead.

[beenthere]

So we all know that fuel prices are sky rocketing.

So I have a question:

Lets say a gas station receives a shipment of fuel on Sunday night. Lets say the shipment is for 100,000 gals and the gas station owner posts the price @ 50¢/gal.(ya, I'm still living in 1970)

Now Monday morning rolls around and the stock market gets the Libyan jitters and the price per barrel goes up 1 dollar. so Mr Gas Station owner increases his price Monday afternoon to 75¢ citing increased cost per barrel. On Monday Mr Gas Station owner sells 10,000 gal. He now has 90K gallons left in the tank that he bought at 50¢/gal.

Tuesday rolls around and the stock market gets even more jittery about the conflict in Libya and the price per barrel goes up some more. So Mr Gas station owner increase his price at the pump to $1 per gallon. Yet the gas in the tank was bought at 50¢ and is still at 50¢. On Tuesday Mr GSO sells another 10K gal

Wednesday rolls around and a bird poops on an oil tank in Libya and the price of a barrel goes up again. So Mr GSO raises his price again, on the same gas he bought at 50¢ three days ago?

anyone see what I'm getting at here? The gas in the tank is still at 50¢/gal, yet Mr Gas station owner raises his price on a Fantasy

Gas station owners are crying they are going broke, they only make a couple pennies per gal...........BS

some one is getting rich while the rest of us are going broke:gah: this is crap :gah:

Ok, first they don't have 100,000 gallons tanks.

Second. lets say he paid 50 cent a gallon for 10,000 of gas, and is selling it at 75 cents a gallon. So he keeps his price at 75 cents a gallon until he runs out of gas. So he orders another 10,000 gallons, but now he has to pay 75 cents a gallon for it. He sold it at a loss in that case.

[John Markl]

well this has turned into an interesting topic, but your going to have to go a long way for me to believe a GSO is making pennies on a gallon of gas and they make most of there money on store sales of groceries and coffee.

ie: if 10 cars pull in to fill up, I bet only 2 or 3 will actually go inside to purchase anything (other than gas)

at pennies on the gallon that would be equivalent to us making 10 bucks on every furnace we sell, it simply does make any sense to stay in that business. Especially if you start to figure in payroll and overhead.

Well, as I said earlier, I have a personal friend who runs a Shell station. It's 4 cents per gallon, period, and the distributor sets the price.

His profit comes from indoor sales....from flats fixed, to beer, cigs, and lotto tickets.....The markups on drinks and snacks would rival our flat-rate books.

Not everyone that we give a "free estimate" to, buys our stuff either, but we survive.....Keep in mind that not everyone who comes in buys gas either....

[GT Jets]

Ok, first they don't have 100,000 gallons tanks.

Second. lets say he paid 50 cent a gallon for 10,000 of gas, and is selling it at 75 cents a gallon. So he keeps his price at 75 cents a gallon until he runs out of gas. So he orders another 10,000 gallons, but now he has to pay 75 cents a gallon for it. He sold it at a loss in that case.


Just so you know.....You can't teach common sense...Many have tried, all have failed.:gah:

100,000 gallon tanks :LOL:


They can buy 100,000 gallons though, that is when they lose their arse when the bottom drops out of the market...I don't know if that has ever really happened though. :anyone:

GT

[beenthere]

Just so you know.....You can't teach common sense...Many have tried, all have failed.:gah:

100,000 gallon tanks :LOL:


They can buy 100,000 gallons though, that is when they lose their arse when the bottom drops out of the market...I don't know if that has ever really happened though. :anyone:

GT

Happens to oil companies sometimes that take advantage of the summer fill up discount. And then have to watch as the price of oil drops below what they paid for it at a summer discount. So they end up having to buy all the oil they are going to deliver and keep the more expensive oil in the tank until the price comes back up.

[jmac00]

Just so you know.....You can't teach common sense...Many have tried, all have failed.:gah:

100,000 gallon tanks :LOL:


They can buy 100,000 gallons though, that is when they lose their arse when the bottom drops out of the market...I don't know if that has ever really happened though. :anyone:

GT


good freaking grief, and they don't sell gas for 50¢ either....idiots

I think it's time to close the thread :gah::gah::gah:

[GT Jets]

good freaking grief, and they don't sell gas for 50¢ either....idiots

I think it's time to close the thread :gah::gah::gah:

My point was that do you really think gas stations are making tons of money?

Think about it for a second. Lets just say 200 cars came to a gas station and all bought 25 gallons of gas, that would be a total of 5000 gallons, agreed?

So lets say the profit margin worked out to $1.00 a gallon (which is ridiculous).

So they would profit $5000 in only 200 patrons...Really?

Break it down.

They have one employee running the register that most likely barely breaks minimum wage, most purchases are via a credit card.

They have limited maintenance on the facility, the largest being the pumps and the bathroom.

So now lets take that $5000 with 200 patrons and multiply that by one month.


$150,000 a month? really again?

Figure the same scenario for $.05 a gallon...

Same 5,000 gallons but now at a more realistic $.05 per.

$250 per 200 patrons (real numbers are closer to 1000 patrons here).

$250 for a slow day times one month....= $7500...A little more realistic, you think?

If it were a $1.00 per gallon, I would be looking into going into the gas station business....Last time I looked, I didn't see any gas station owners driving Bugatti's...:.02:

Not trying to offend anyone, it just irritates me to have people with no "real" experience making comments about something they know little about.

BTW, I have worked for a service station as a youngster. The tire and oil service quadrupled the profitability of the fueling station....:.02:

As stated before, the governments make a ton more dough on fuel sales than does the GSO.

GT

[beenthere]

good freaking grief, and they don't sell gas for 50¢ either....idiots

I think it's time to close the thread :gah::gah::gah:

Here in PA they are limited to 15.9 cents on the gallon, after all cost. Yes, they are allowed to figure in what it will cost to replace that gallon of gas.

I had worked for 2 small oil companies that both supplied gas to private gas stations, and also sold gas themselves. They weren't getting rich off of gasoline sells.

Oh, and the under ground tanks for gas, were only 10,000 gallons tanks. And some of the smaller gas tanks at the stations were only 4,000 gallon tanks for the higher octanes. And since they couldn't take a full drop, they were charged more per gallon for it to be delivered to them and they of course didn't sell much of it at what they had to charge then.