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sometimes there is. i.e. there is an intersection by me that has 3 gas stations on it. They used to have identical pricing. Then one station started charging t
by vaksel 15y ago
sometimes there is.
i.e. there is an intersection by me that has 3 gas stations on it. They used to have identical pricing. Then one station started charging the same amount for credit card transactions as it did for cash(other stations had cc transactions cost 10 cents more per gallon)
result? that station is always packed...there is a line to actually get gas...while the other stations barely have any business.
So it costs them 10 cents out of $3.70 a gallon or 2.7%(you know the actual cost of cc transactions..that every business in the world pays without a second thought) to get market penetration.
And since now the cost of gas is pretty high, they are getting a ton of money, since every fill up gets them $40-80
- jamesbritt 15y agoAnd since now the cost of gas is pretty high, they are getting a ton of money How much of that do they keep?
- vaksel 15y agonot much, the profit margin after they pay their bills is about 3-5%
- ck2 15y agoNote I am not talking about the profits for individual stations. I am talking about the profits for the wholesale suppliers, the major players in the oil industry which are the most profitable business in the history of humankind (yet still get huge tax breaks and even taxpayer funding for their research and development, recently renewed in Congress).