3 ms·
Some (most?) gas stations make more money on the convenience store than on the gas itself. So setting up a scheme to encourage the customer to come in the store
by athenot 10y ago
Some (most?) gas stations make more money on the convenience store than on the gas itself. So setting up a scheme to encourage the customer to come in the store is in their interest. They make it super easy to toss in a side item with the gas purchase.
- rubyfan 10y agoGood context. Lottery tickets, tobacco products, monster energy drinks, coffee, soda, 5 hour energy, protein bars and beef jerky are evidently where the money is made.
- ams6110 10y agoThis is true. Gasoline is sold with almost no profit. It's one example of a perfect competitive market converging on zero profit (at least for the retailer). Gasoline is a commodity, it's all the same and everwhere it's sold there are usually several competing retailers and prices are highly visible from the street.
- rubyfan 10y agoYeah interesting, I wonder if there's anything remotely similar in the real world.
- analog31 10y agoI suspect it's quite common. Gas is an ideal loss leader -- the price on the sign, and your need for gas, gets you into the station. But now you're there, and you're less sensitive to the price of a Coke or bag of jerky. But there are a lot of markets where price competition drives down the margins for the "main" product, so that the retailers make up their profits on smaller stuff. I've read that a store selling electric guitars or bicycles makes relatively little profit on those items, but instead, makes their nut on accessories, things that wear out, service, lessons, etc.