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Costco is 20% cheaper than all other stations in Toronto. So either Costco is selling at a loss (unlikely) or there's plenty of profit in gas for gas stations.
by aianus 9y ago
Costco is 20% cheaper than all other stations in Toronto. So either Costco is selling at a loss (unlikely) or there's plenty of profit in gas for gas stations.
- colejohnson66 9y agoOr they buy a lot in bulk when the price is low.
- kspaans 9y agoGiven that you have to pay an annual membership fee to get access to that gas, it's likely subsidized by the fee and used as a loss-leader to bring people to shop at Costco.
- Baeocystin 9y agoCostco does not subsidize its gas sales. It makes money from them: https://www.fastcompany.com/60019/tiger-costcos-tank https://www.fastcompany.com/60019/tiger-costcos-tank It's an older link, but they still do much the same. There have been court cases brought against them by consortiums of other gas stations here and there, but AFAIK Costco has emerged victorious so far.