Running on Empty(Gas stations stop selling fuel)

milwaukee journal sentinel ^ | May 23, 2007 | THOMAS CONTENT

[lewislynn]

Distributors intentionally keep their inventories lower coming into the Springtime...this has the desired effect as demand rises. Capitalism works.

In the case of this article, capitalism = fewer retail outlets for your product...got it.

[sportutegrl]

Actually, since pay at the pump became widespread, many people don’t bother to go in and buy impulse type items anymore, especially moms with kids in carseats.

[ShadowAce]

Please see Post #20. I misread your post and was corrected.

[cinives]

So go blame the EPA, Congress and all envirocritters.

Read a good economics textbook too - oligopolies and monopolies can only be sustained by government laws restricting entry into a field.

[ol' hoghead]

Atlas Shrugged comes to mind.

[mvpel]

Discounts for cash instead of credit card violates their terms of service with the credit card processor. That’s why some stations will only accept debit cards or cash, since the swiped debit card fee with a PIN can be a flat rate rather than a percentage, or a considerably lower percentage than credit card.

[zeugma]

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 many states, the socialsts will put you in jail for that.  Why do you think Exxon stopped doing cash pricing?

[Bloody Sam Roberts]

In the case of this article, capitalism = fewer retail outlets for your product.

In the case of this article, those retailers who refuse to adapt will perish. Many a gas retailer sells more than gas and auto repairs in order to make money.

[listenhillary]

Distributors intentionally keep their inventories lower coming into the Springtime...this has the desired effect as demand rises. Capitalism works.

Springtime = reformulated gas. Hard to stock up if the spring mix isn't being produced yet.

[listenhillary]

Very good point! Taking credit cards seems to be a lose lose situation.

[Shots]

Odd the JS left out what their sister TV Station WTMJ reported. He only stopped selling his gas FDR 24 hours as a protest or so they reported at 8 AM this morning. Also just repeated at 9:28 am

That is the station in Mequon and then they are also running a clip about cheating at the pumps

http://www.todaystmj4.com/news/local/7658557.html

[Thermalseeker]

Discounts for cash instead of credit card violates their terms of service with the credit card processor.

Could be, but I know of at least a dozen gas stations in my area that offer discounts for cash and have been doing it for years. I pay more attention to diesel since I drive a diesel, but the discounts are offered on both fuels. I know of a few FBO's that offer cash discounts on avgas, too.

[freeforall]

Consumers can also adjust demand accordingly.

[RC30]

Most credit card companies require you to charge the same price cash or credit. If you as a credit customer see someone offer a discount for cash, you can call the credit card company and they will have a talk with the merhcant. Technically/contractually if they want to take credit cards they have to keep prices the same between cash & credit. Also (although I see this done quite a bit) I believe most credit card companies don’t like minimum charge amounts.

[Shots]

Ops I just noticed this station is located in Brookfield while the one I mentioned is in mequon so if I caused any confusion.

[Publius Valerius]

I believe most credit card companies don’t like minimum charge amounts.

That's true. Merchants cannot set minimum prices for credit card transactions without violating the terms of their agreement with the credit card company.

[Old Professer]

Pay $3.44/gallon and sell it at $3.44/gallon; going to take a lot of volume.

[Publius Valerius]

It is a little bit of a semantics issue. Per Mastercard:

“Surcharging credit card transactions is strictly prohibited by the card associations,* MasterCard® , and Visa® . A merchant may, however, offer discounts for cash transactions provided it is clearly disclosed to cardholders as a cash discount and the cash price is presented as a discount from the standard price available for all other means of payment.

“*MasterCard® modified its regulations to allow the IRS to assess a 2% convenience fee. No other industries were part of that modification. Visa® is not part of the IRS program and has no exceptions to surcharge prohibition.”

[winner3000]

It is time for merchants to give a discount to customers who pay cash. Otherwise, they should stop whining about credit card companies.

[kellynla]

I don’t know how it is where you live but in CA the ARCO stations where I trade take cash and charge you fifty cents to accept credit cards. Not too many independents left where I live in Southern Cali...