Posted on 05/19/2005 10:44:07 AM PDT by newgeezer
ATLANTA - As the price of gasoline has gone up, the way it's marketed has changed. ...
But with the price shock of the 1970s, we started pumping it ourselves. And from then on, only one thing mattered: Cost.
Today, once again, price is dramatically changing the market. Supermarkets like Kroger and discount stores like Wal-Mart and Costco have plunged in, offering gasoline that consumer advocates agree is as good as anything being sold by the big names, and selling it 2 to 7 cents cheaper than nearby stations. Volume is what allows them to buy gasoline at a better price, which they often sell for little profit.
...
Right now, these "hypermarkets," as they're called, account for less than 10 percent of the gasoline market, but they're growing fast.
Among new grocery stores planned in 2003, just 18 percent included gas pumps. By 2004, that number soared to 62 percent. All that new competition has cut profits.
...
"There's no question hypermarkets are a threat," echoes Jeff Lenard, also with the association. "They're changing the way convenience stores are doing business. And if you don't change along with it, you won't be around."
Smaller gasoline operations are fighting back, supporting legislation barring hypermarkets from selling below cost. At least 29 states now have such laws. Maryland has stepped in 31 times to put down price wars, forcing gasoline retailers to raise their prices.
But some chains like Sheetz are using convenience and high-tech innovations to lure customers, like ordering ready-made food or gourmet brews at the pump. These days, as one convenience store expert put it, you can make more money selling a 12-ounce cup of coffee than on a 12-gallon fill-up.
© 2005 MSNBC Interactive
(Excerpt) Read more at msnbc.msn.com ...
The Maryland gasoline retailers lobby must be getting its money's worth.
Don't fill up today.
Sheetz is a modern marvel.. the product of capitalism and free enterprise.
Unacceptable to those who don't want to adapt.
Gasoline stations at grocery stores is absolute genius..
The biggest price discrepancy comes when prices are dropping -- These 3 retailers drop it much faster than the gas stations when the wholesale price goes down.
Why not? What will that accomplish?
Bump
Ping.
A local supermarket chains has its own gas stations and was doing some undercutting. A state organization of gas stations is now suing the chain -- unfair trade practices or some such. In my opinion, that's bull. If these actions against discounters are successful, we will be that much closer to kissing capitalism and free enterprise goodbye.
Something businessmen have known forever.
I liked this part:
Volume is what allows them to buy gasoline at a better price, which they often sell for little profit.
That is typically illegal, so they better watch their wording. Volume doesn’t allow you to buy cheaper. You buy at the same price as everyone else, typically. Volume-based rebates are what allow you to sell at a lower price. You’ll get the rebates at the end of the month, assuming you meet the various metrics which are generally scientifically designed to be just slightly out of reach.
But it’s usually “rebate,” not “discount.” ‘Cause in a lot of places discount is illegal – rebate is not.
LOL!
I wish that Sheetz was a public co. They are a great company.
"Maryland has stepped in 31 times to put down price wars, forcing gasoline retailers to raise their prices"
(happened under Governor Parris N. Glendening)
Sad to say, fellow MDers think these democrats running MD are out to protect them. But they are always making laws to jack up the prices of everything: walmarts, HMOs, gas prices, you name it. The many MD poor must be clueless.
C'mon, everyone knows protection isn't free.</sarcasm>
One price fits all when it comes to energy.
Here in New England some Super Stop and Shops sell gas and they offer discounts of 5 cents per gallon to those who have their discount cards (self-serve users scan their cards)
http://www.stopandshop.com/stores/gas.htm
It's a misguided attempt at a boycott, which assumes that oil companies are gouging customers and that if we don't buy any gas on a specific day it will "force" them to lower prices. Neither premise is true, so it's completely pointless.
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