Oil companies payback

crazy hawaiian · Jun-26-2008, 12:05 AM

I've posted a couple times on what I consider is a way to get the attention of the oil companies.

A recent article in the Union/Trib reinforces my point.

Quote: "Mini-marts are also a key to survival, Lewis said. He noted the $1.20 profit from he makes from a $1.59 slush drink is about the same as the $1.21 profit he gets from selling 11 gallons of gas at $4.54 a gallon".

Buy your gas at a gas station. Use other local businesses for the all the things you normally buy at a gas station mini-mart.

Hara_san · Jun-26-2008, 12:59 AM

How does this make sense? Punish the small business owners who are just trying to make a living? I recently read 3000 gas station owners had to close up shop. Has this decreased gas sales or just killed the small guy? Something to think about.

Sluester · Jun-26-2008, 06:51 AM

What if you don't buy junk at a mini mart, just fuel? What are the gas station making on thier fuel?

Kurt · Jun-26-2008, 07:53 AM

Buy my squishees....

gecsr1 · Jun-26-2008, 08:08 AM

I have a hard time believeing that the profit to the gas station or mini mart is only 10 cents a gallon... usally profits are based on a precentage of the cost. as fuel goes up so does the % factor.

I just can not believe that it's a dime a gallon profit.

TROB · Jun-26-2008, 10:10 AM

its true, gas station owners don't make much per gallon. i worked at one for a couple years working for my dads friend and he was making about $0.15/gallon sometimes 20 cents/gallon......but he said where its competitive (4 stations at one intersection) they only get .08 - .10 /gallon.
the money that keeps gas stations afloat is from the garage, and the store. if you don't have those, its a struggle

so believe it

gecsr1 · Jun-26-2008, 10:30 AM

Quote:

Originally Posted by TROB

its true, gas station owners don't make much per gallon. i worked at one for a couple years working for my dads friend and he was making about $0.15/gallon sometimes 20 cents/gallon......but he said where its competitive (4 stations at one intersection) they only get .08 - .10 /gallon.
the money that keeps gas stations afloat is from the garage, and the store. if you don't have those, its a struggle

so believe it

Sorry ....I don't believe.... it they were making 10 cents a gallon when gas was 2.00 a gallon and now the are making 10 cents a gal when gas is almost 5.00 a gallon... that is no return on there intail outlay..... you can make more in a money market account.....

cost of overhead has almost doubled in the last few years.... it does not eqaute....

so your saying they are making 2% gross profit on a gallon of gas.... before overhead.... sorry ...just sounds like a line of bull to me...

Don't get me wrong they have a right to make a fair profit , they are in business to make a profit.... and 10 % or 15 % or 20 % wouldn't be out of the question. I understand it's not the small businessman that controls the price.

over and out....

walkerman · Jun-26-2008, 10:33 AM

Quote:

Originally Posted by gecsr1

I have a hard time believeing that the profit to the gas station or mini mart is only 10 cents a gallon... usally profits are based on a precentage of the cost. as fuel goes up so does the % factor.

I just can not believe that it's a dime a gallon profit.

You have to remember that the stations have to buy their gas from the refiners, who have to buy it from OPEC. When the cost of OIL goes up, OPEC makes more money...the refiners and gas stations both have to pay the higher prices to, in order to get the oil to refine into gas and sell.

Now, you wanna talk about profit....the government makes more in taxes than the stations make for selling the gas, and to my knowledge, they didn't have anything to do with producing the product.

As to your statement....
"Sorry ....I don't believe.... it they were making 10 cents a gallon when gas was 2.00 a gallon and now the are making 10 cents a gal when gas is almost 5.00 a gallon... that is no return on there intail outlay..... you can make more in a money market account..... "

Sorry, I don't believe he said they are still making 10 cents a gallon, now did he.

gecsr1 · Jun-26-2008, 10:42 AM

Quote:

Originally Posted by walkerman

You have to remember that the stations have to buy their gas from the refiners, who have to buy it from OPEC. When the cost of OIL goes up, OPEC makes more money...the refiners and gas stations both have to pay the higher prices to, in order to get the oil to refine into gas and sell.

Now, you wanna talk about profit....the government makes more in taxes than the stations make for selling the gas, and to my knowledge, they didn't have anything to do with producing the product.

I do understand all that and the poor small biz guy gets it in the shorts all the time....

but I am just saying he make more than 2% gross profit on a gal of fuel. making 10 cents on a 5.00 purchase just does not make sense.

shinerunner · Jun-26-2008, 10:51 AM

One of our coutomers has over 200 minimart gas stations.
He claims his biggest money maker is ciggerettes.

**Marcus** · Jun-26-2008, 11:42 AM

Quote:

Originally Posted by gecsr1

I do understand all that and the poor small biz guy gets it in the shorts all the time....

but I am just saying he make more than 2% gross profit on a gal of fuel. making 10 cents on a 5.00 purchase just does not make sense.

Unfortuantely the wholesale price that gas is selling for keeps the margin at about $0.10-0.20 a gallon. We have some family friends in the Bay Area who own some gas stations and they are looking at getting out of the business.

Jig Strike · Jun-26-2008, 11:45 AM

Quote:

Originally Posted by gecsr1

Sorry ....I don't believe...

....so your saying they are making 2% gross profit on a gallon of gas.... before overhead....

....making 10 cents on a 5.00 purchase just does not make sense.

Belief does not effect reality.

The 10 to 15 cents per gallon is the profit not the markup.

20,000 gallons per month at 15 cents profit per gallon is $3000 profit.