Why cheap Gas/Diesel is cheap?
Discussion in 'Questions From New Drivers' started by Solo Soul, Sep 13, 2021.
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blairandgretchen and Solo Soul Thank this.
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at one time, at the station i ran, the mark up for the station owner could have been as much as $1.00 per gallon profit.
then came the energy crisis, of the 1970's, (if i recall), and that pretty much ended any more such high profits for the station owner(s).
it was not uncommon during my time, running that station, that as little as a half cent to a full penny profit per gallon was just fine and dandy with the owner(s).
this is why there aren't that many full service gas stations, with mechanics for the past 2-3 decades now. there is no profit in gasoline or diesel sales or auto repairs. the profits margins are much higher in the self-serve, convenience store set-ups.
i personally knew 3 Mobil dealers, 2 Gulf dealers and 3 Shell dealers, with a full complement of mechanics, and repair bays, that they were each approached by, Mobil, Gulf, and Shell, that if they converted over to 100% self-serve, convenience stores, thier profits would triple in only 1 year....
and that's just what they did, fired off the costly mechanics, got rid of the costly insurance, like workman's comp, payroll, and converted over.
each dealer, was able to buy "a few more" stations, and make even MORE profits.
and the gasoline and diesel they buy, in HIGHER volumes, gives them more discounts, and thusly can sell fuels at FULL retail, and make well up to and if not over $1.00 in actual profits per gallon.
smaller stations simply cannot compete with that.Cowboyrich, Diesel Dave, Mototom and 2 others Thank this. -
I found a place even cheaper
Trucker61016 Thanks this. -
But I don't want to kill SBA's Suburban
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Diesel Dave, dngrous_dime and blairandgretchen Thank this.
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Oh.....you won't be responsible.......it is the evil fentanyl dealers.......they prey on inner city Suburbans and Hyundai's with fart pipes, multi color undercarriage lights that listen to hip hop.....yaknowwhaddimdsayinyo!Solo Soul Thanks this.
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you can always buy additives, from AutoZone, Advanced Auto, and other parts stores or online, specific to diesel engines.
check this brand out, they advertise on a TV show, Truck U
Hot Shot's Secret - The Original Stiction EliminatorSolo Soul Thanks this. -
WHY on earth are the rest of you buying into the TROLL.......and trying to give legit advice????? Do any of you pay the LEAST BIT of attention?
Solo Soul Thanks this. -
i am bored, and lonely, the wife is at the kids house, baby sitting the grand kids, and of all days, i could not get to any of the 3 ranges i go to....
it's something to do...... -
I would only worry about the quality if it were a run down out of the way type place where it might be old fuel.
As I understand it, the $$ to be made in gas station business is made in the store, hence the proliferation of gas stations that keep having increasingly large stores, delis, food courts, etc.
As I understand the business, it would not be uncommon for the proprietar to be selling gas at a loss, and making it up on sales inside the store.Trucker61016, Solo Soul and buddyd157 Thank this.
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