An observation from today's roamings

Something I noted today and am wondering if a trend is developing. I
reached the refuel point on my car (essentially when the needle
reaches 3/4 of a tank) and pulled into a gas station along the way.
Had to go in to get the receipt and there were signs on the door
saying to the effect that the station would be closing permanently on
March 10.

No biggie to me, but further on in my morning travels, I noted another
station whose price (US$3.09) hadn't changed in weeks. Something
caught my eye on one pump (the bright red bag over the handle) and
looking at the others that I could see from the intersection (stopped
at a red light) they all were similarly covered.

Gave me pause to think (yeah, I know that's a strange concept...), is
selling gasoline becomming so unprofitable and/or a pain in the ass
that people are getting out of the business? The second station did
appear as if the C-store was still open, but I don't think they are
selling gas.

"You can fool some of the people all the time,
and those are the ones you want to
concentrate on."
--President George W. Bush

In article >,
necromancer > wrote:

> Gave me pause to think (yeah, I know that's a strange concept...), is
> selling gasoline becomming so unprofitable and/or a pain in the ass
> that people are getting out of the business? The second station did
> appear as if the C-store was still open, but I don't think they are
> selling gas.

What I have been told by someone in the business is that many
of the independent stations have to pay for their gas up front,
COD when the truck comes. They count on selling the last tank
of gas to pay for the next tank. If they sell a tank at $2.89,
and the next tank comes in when it is $3.08, they end up short
and cannot afford to refill. Once they get behind, they never
seem to be able to catch up.

Another trend that I am seeing is that stations are selling
all the gas that they can get, so they are cutting back shifts.
I see a lot of stations that used to be 24x7 that are no closing
at night. Why bother to take the robbery risk and bother with
marginal employees (or work it yourself) when you don't sell
any more net volume of gas anyway.

-john-

--
================================================== ====================
John A. Weeks III 612-720-2854
Newave Communications http://www.johnweeks.com
================================================== ====================

On Mar 6, 2:15�pm, necromancer
> wrote:
> Something I noted today and am wondering if a trend is developing. I
> reached the refuel point on my car (essentially when the needle
> reaches 3/4 of a tank) and pulled into a gas station along the way.
> Had to go in to get the receipt and there were signs on the door
> saying to the effect that the station would be closing permanently on
> March 10.
>
> No biggie to me, but further on in my morning travels, I noted another
> station whose price (US$3.09) hadn't changed in weeks. Something
> caught my eye on one pump (the bright red bag over the handle) and
> looking at the others that I could see from the intersection (stopped
> at a red light) they all were similarly covered.
>
> Gave me pause to think (yeah, I know that's a strange concept...), is
> selling gasoline becomming so unprofitable and/or a pain in the ass
> that people are getting out of the business? The second station did
> appear as if the C-store was still open, but I don't think they are
> selling gas. �
>
> "You can fool some of the people all the time,
> �and those are the ones you want to
> �concentrate on."
> � � � � � � --President George W. Bush

I've noticed the bags over the handle thing as well at the place I
used to get gas recently as well, but somehow, the associated
convenience store stays open, which makes me wonder what people go
there for. (Then again, its next to a high school and they probably
draw the kids cheating class.) I've also seen some gas stations
close as well, but they were usually of the ones with 4 to 8 pumps.
If they have lots of pumps, they are open.

necromancer > wrote in
:

> Something I noted today and am wondering if a trend is developing. I
> reached the refuel point on my car (essentially when the needle
> reaches 3/4 of a tank)



You fill up after using only 1/4 of a tank? ;-)

I usually fill up when the gauge gets down to 1/4.

--
Jim Yanik
jyanik
at
kua.net

On 6 Mar 2008 22:34:49 GMT, Jim Yanik > wrote:

>necromancer > wrote in
:
>
>> Something I noted today and am wondering if a trend is developing. I
>> reached the refuel point on my car (essentially when the needle
>> reaches 3/4 of a tank)
>
>
>
>You fill up after using only 1/4 of a tank? ;-)
>
>I usually fill up when the gauge gets down to 1/4.

Just me, I guess. As humid as it is around here, I prefer to keep the
tank full.

--
"Hell i once painted a whole car with a bunch of spray cans."
--Laura Bush murdered her boyfriend, 3/29/06

Ref:http://tinyurl.com/qqaeq
Message ID:

On Thu, 6 Mar 2008 13:35:47 -0800 (PST), DandyDan
> wrote:

>On Mar 6, 2:15?pm, necromancer
> wrote:
>> Something I noted today and am wondering if a trend is developing. I
>> reached the refuel point on my car (essentially when the needle
>> reaches 3/4 of a tank) and pulled into a gas station along the way.
>> Had to go in to get the receipt and there were signs on the door
>> saying to the effect that the station would be closing permanently on
>> March 10.
>>
>> No biggie to me, but further on in my morning travels, I noted another
>> station whose price (US$3.09) hadn't changed in weeks. Something
>> caught my eye on one pump (the bright red bag over the handle) and
>> looking at the others that I could see from the intersection (stopped
>> at a red light) they all were similarly covered.
>>
>> Gave me pause to think (yeah, I know that's a strange concept...), is
>> selling gasoline becomming so unprofitable and/or a pain in the ass
>> that people are getting out of the business? The second station did
>> appear as if the C-store was still open, but I don't think they are
>> selling gas. ?
>>
>> "You can fool some of the people all the time,
>> ?and those are the ones you want to
>> ?concentrate on."
>> ? ? ? ? ? ? --President George W. Bush
>
>I've noticed the bags over the handle thing as well at the place I
>used to get gas recently as well, but somehow, the associated
>convenience store stays open, which makes me wonder what people go
>there for. (Then again, its next to a high school and they probably
>draw the kids cheating class.) I've also seen some gas stations
>close as well, but they were usually of the ones with 4 to 8 pumps.
>If they have lots of pumps, they are open.

That could be it. The first station was 4 pumps and the second is 6
pumps. I guess the second station being on a busy corner can still
make enough insales from the C-store alone to stay afloat.

Though, I didn't think of it earlier, but there was a Shell station at
US17/IH95 (Exit 29 in GA) that closed about a couple of months ago.
That one, IIRC, was 10 gas pumps and about 15 Diesel pumps for the
truckers.

--
"This town needs an enema!"
--The Joker

"necromancer" > wrote in
message ...
> Something I noted today and am wondering if a trend is developing. I
> reached the refuel point on my car (essentially when the needle
> reaches 3/4 of a tank) and pulled into a gas station along the way.
> Had to go in to get the receipt and there were signs on the door
> saying to the effect that the station would be closing permanently on
> March 10.
>
> No biggie to me, but further on in my morning travels, I noted another
> station whose price (US$3.09) hadn't changed in weeks. Something
> caught my eye on one pump (the bright red bag over the handle) and
> looking at the others that I could see from the intersection (stopped
> at a red light) they all were similarly covered.
>
> Gave me pause to think (yeah, I know that's a strange concept...), is
> selling gasoline becomming so unprofitable and/or a pain in the ass
> that people are getting out of the business? The second station did
> appear as if the C-store was still open, but I don't think they are
> selling gas.
>
> "You can fool some of the people all the time,
> and those are the ones you want to
> concentrate on."
> --President George W. Bush

Most independent gas station/convenience stores make little to nothing on
the gas. Gasoline is a loss leader to get you into the store and buy the
overpriced stuff inside. Needless to say, Pay At The Pump was not an
innovation that cared for.

- B

On Mar 6, 2:34*pm, Jim Yanik > wrote:
> necromancer > wrote :
>
> > Something I noted today and am wondering if a trend is developing. I
> > reached the refuel point on my car (essentially when the needle
> > reaches 3/4 of a tank)
>
> You fill up after using only 1/4 of a tank? *;-)
>
> I usually fill up when the gauge gets down to 1/4.
>
> --
> Jim Yanik
> jyanik
> at
> kua.net

Depends on the market. If prices are going up, I keep the tank full,
i.e., fill at 3/4 approx. Price going down, fill when tank near
empty. Okay, it doesn't save all that much but it does feel better.

Harry K

["Followup-To:" header set to misc.transport.road.]
On 2008-03-07, Bill > wrote:

> Most independent gas station/convenience stores make little to nothing on
> the gas. Gasoline is a loss leader to get you into the store and buy the
> overpriced stuff inside. Needless to say, Pay At The Pump was not an
> innovation that cared for.

No. Even the oil companies didn't like it, as they want to upsell you stuff
from the C-store too. I speak from experience, having had the "PLUS SALES"
mantra drilled into me by BP when I worked for them as a retail cashier.

Another factor to remember with the dealers is that the oil companies are
not only suppliers but also competitors, and will attempt to screw the dealers
seven ways from Sunday. I've never seen such an incestuous relationship
anywhere else besides telecomm/Internet (that industry is the same way,
where you have to make major purchases from your competitors).

--
Steve Sobol, Victorville, CA PGP:0xE3AE35ED www.SteveSobol.com
Geek-for-hire. Details: http://www.linkedin.com/in/stevesobol

["Followup-To:" header set to misc.transport.road.]
On 2008-03-07, richard > wrote:

> Let's do the math here.
> Subtract the state taxes from the pump price + say 3 cents.
> That's what the station pays for it right?
> Maybe not. I believe there is a hidden profit realized by the stations
> that they are not willing to disclose. After all, how can Shell and
> others kickback 15 cents a gallon to it's customers?

Ummmmm.... that's on credit cards, and you are paying interest on those
cards in most cases. Plus, we are talking dealers here, and the dealers
don't have much of a margin (though we all know the oil companies themselves
are making tons of money).


--
Steve Sobol, Victorville, CA PGP:0xE3AE35ED www.SteveSobol.com
Geek-for-hire. Details: http://www.linkedin.com/in/stevesobol