Posted on 05/24/2007 5:48:44 AM PDT by kellynla
Yep, that’s why most place sell snacks and soft drinks as that is the best way to make money off of selling gas.
I feel bad for this guy.
Snacks and soda are ok, but I’ll bet they make more off cigarettes and lottery tickets.
Sounds like the credit card industry is cleaning up.
Now I don’t feel guilty for paying my balance each month.
Sounds like the old “chain store” argument. Independents cannot match economies of scale when selling a commodity product.
So cut the price 15 cents a gallon for cash purchases. Sales will increase, it'll put pressure on MC, and the increased cash sales might have {cough, cough} positive tax benefits.
In order for gas prices to be lower, demand must change as it tends to be inelastic.
Supply must also be increased the left is against this method.
Expect more of the same as the dollar continues to lose value. Lots of small busness will fold.
Cigarettes maybe, but lottery tickets no. The retailer gets 5 cents for every $1.00 ticket sold. Not much of a margin.
Offering discounts for cash purchases violates oil company franchisee agreements and, in some cases, state law.
There’s a small gas station near where I live that has stopped selling gas.
counting scratch offs too? All i ever see anyone buying in the local quickie mart are cigs and scratch offs and lotterty tix. i go for the zig zags.
MC doesn’t work that way. They get a flat rate right off the top. He cuts prices by 15 cents, and MC still gets their cut. He’ll end up losing money even more.
I can’t say for sure for all states, but I know in Texas the retailer gets 5 cents for every $1.00 ticket sold.
Really? There's a chain here in MO that offers a 4 cent/gallon discount if you pay cash. No problems with law or companies as far as I can tell.
If they are cash purchases, Master card doesn’t have anything to do with it.
Funny, Wisconsin state law requires that stations markup gas by 9.18%.
Believe me, they sell gasoline only to bring in folks who buy other retail items. Beer, cigarettes and soda being some of the largest selling items.
When stations stopped offering full service, gas prices came down and the old fashion service stations folded. You can pull into a Jiffy Lube for an oil change or a convenience store for a fill-up, while getting a six-pack on your way home from work.
You're right. I misread the post I was replying to. Sorry about that, Uncledave!
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