Gas Prices.......A Ripoff in Progress ???

[PVVikeFan]

How many times have we all heard how the gas stations make just a penny or two on a gallon of gas? All the convenience stores swear that they make their money selling what is inside the store, not by selling gas. They could never survive on the small amount of money they make at the pump. They act like they just have the gas as a service to their store customers.

I actually fell for that line until recently. I had never, for some reason, paid that much attention to what was going on. I guess what finally got my attention was a few days ago as I was driving through Norton and I saw gas under $2.00 for the first time in a long time. The price was $1.98.9 to be exact. Gas was still $2.05.9 everywhere else at the time. But this price was not at a convenience store. It was not a "service station" that sold tires and shocks or did mechanic work. It was a little place on Park Ave. that sells GAS. And nothing but gas. Sure, you have to pump it yourself, but you also have to do that at the places that say they are not making any money on gas.

My point is if this place can sell nothing but gas and make enough money to pay an attendant and all the other related expenses, rent, utilities, etc. why is it that nobody wants to admit how much money they are making on a gallon of gas? Now the gas has come down to the same price at other places. I'm just a poor dumb hillbilly from Big Stone Gap America, but I'm feeling kind of ripped off right now.

Oh your 100% correct bro. Most don't even know the price to put up till they are called. One will get a call and drop their price 5-8 cents per gallon and make a quick fortune before the others find out.
Then they all kind of fall in line. It's a game. They know we have to pay. WXBQ did a survey a few years ago when it was like this. Well guess what. Most were changing their prices as the announcements were being made. And one guy said i only make 3 cents off each gallon of gas.
Well if you got the cheapest in town your making some good money at just 3 cents a gallon.
These people are ripping us off. Even those who don't buy from OPEC. Problem is like i said they know they got us.
So the burn us and then our own country does by not having manufacturing places? Or not working on an alternative fuel or way to do something with gasoline to make it more efficient.

[Ironlung]

When gas was about 2.10 a few weeks ago there was a little store in Nickelsville selling gas for 1.99 a gal. It's just a little country type store, not a chain. The guy that owns it told me he was just using it as a draw. He said he sold 6000 gallons that day, until he was out. He said that his store sold about $3000 more in store sales that day.

As some one who works around c-stores, grocery stores, and ma & pa types stores, I can tell you, most don't make alot off of gas. Of course there are a few (one in particular that I service, most of you can probably guess who. Very popular around here) that are just trying to get every penny that everyone has. The products that I sell this chain were on par with most stores in the area. Last week though, their main office faxed us a new price list for my items and some of them they have an over 100% markup.

Yep just what i thought bro. I figured such. As i said it's not all most follow a few. And now i guess we know why. That answered my question on how the others decide when to drop their prices.
Thanks bro. it all seems much clearer now.

[PVVikeFan]

But I still don't understand how this one little place in Norton can sell gas only and sell it cheaper than anybody else. The theory of not making money on gas just makes no sense.

[Craes]

most of the time they don't make money on gas anyway, they make money when they pay 10 cents for a lighter they charge you a dollar for. If you have lower gas prices you may take a cut there but make it up with the in store buys.

[PVVikeFan]

You evidently did not read my first post. The place that first lowered gas prices sells GAS ONLY. There is nothing else to make anything up on. They have been there for several years and have never sold anything but GAS.

That is the big deal. Those who sell gasoline and nothing else.
Well think for sec. They sell nothing else. So their actually making a huge profit.
Instead of the 3 cents per gallon. And no over head.
Guess what their getting. They have no other overhead.
See what i am saying. No convience store. Nothing sold but what gasoline. So their profit is what?
Yeah man we are getting ripped off. And most look to those PVVIKING has said to set their prices.
They don't make a fortune off of fuel.
But it helps attract costumers to buy fuel and what ever else they sell.

[DawgFan3]

I was out in Roanoke this weekend...gas prices down to $1.79 out there..but most places where still around 1.82.