If fuel prices are so tight, why does walmart sell it for 20 cents a gallon less just 1/4 mile away.
The Sad Destruction of Flying J by Pilot- catering to cars
Discussion in 'Truck Stops' started by Diesel_Smurf, Jul 22, 2010.
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You can't run a business off of that kind of margin.
Fuel is the loss leader. Get you in the door to spend money on other things. Same for Walmart. You come for cheap fuel and end up shopping for all kinds of other stuff.
Station operators are at the mercy of the oil companies. They don't make money off the fuel. It doesn't even pay the overhead. -
Fuel isn't much of a loss leader at china mart.
Go watch the fuel/gas islands there and see how many folks are either coming from the store and getting fuel or are going to the store after getting fuel.
It doesn't seem like very many when I've been there getting my fuel and watching the traffic. -
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lol
I didn't say "NEVER". -
But the Murphy station I used is not producing near the output that the big guys are. Murphy is making a couple cents per gallon, so that leaves the big guys making .23 cents more.
I have seen the books on several client stations. You will never get me to believe the sob story. -
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This is an interesting thread. I'm a 4 wheeler but am very much a supporter of the American Trucker. I live near a Flying J in Ky and me and my wife were very excited when we saw a Denny's opening up where the Cookery once was. The Cookery when we moved out here had good food at good prices, however over the past year the prices went up and the food quality went down. So far we have ate at the Denny's twice, the first night it opened and a second time and thus far the service has been quick, food hot, and with the 2, 4, 6, 8 dollar menu very reasonable on price. Hopefully it remains that way over time.
From a business point of view some of the arguments here are valid. The markup on fuel is on avg about 8-10%. The margin though ends up being about 10cents per gallon after you takeout the credit card processing fees. Even though Pilot purchased Flying J doesn't mean they are in any stronger liquidity standing than Flying J was. Without reading the details of the deal my guess is it was financed with debt, which represents risk and a reason for some of the cost cutting changes that you may see at both truck stop brands.HFC Thanks this.
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