Re: Subject: Fw: Gas Prices High??!!
I run a gas station/c-store. The margin on a gallon of fuel is hefty. The taxes in NY on a gallon of fuel are hefty. We subsidize a large metro public transportation system even though I have never set foot on a subway train. Even though oil is a commodity and the price per barrel is set on supply and demand the price on the street IS affected by consumers. My company sends me E-Mails as to what my prices should be based on what I report as competitors prices on my market map(four different brand stations within 5 miles). When they go down, we go down. When they go up, we go up. Just one days lag on the movement of 2 cents has a dramatic effect on my sales volume. The consumer is acutely aware of the difference in price between brands. As prices go up the sales in my store go down. The fella with a $20 used to put $18 in the tank and then come get a coffe and donut. Now, $20 goes in the tank and he brings a thermos to work and the tank isn't even full. I do believe that boycotting the majors will force them down and then the mids and smallers will follow. And yes sometimes Mobil buys fuel from our tanks and retails 5-6 cents/gal. higher or we buy from them and sell at lower retail but from what I understand that's borne out of necessity not habit. As for the smaller un-branded stations I really don't know where they get their gas. I t all angers me too because I pay the same as you for a fill-up but I don't get paid more for raising the price. It hurts me doubly because I'm rated on my inside sales of coffree, donuts, chips, etc... and they go down when fuel goes up. Hope this helps. Those who say the consumer has no power are those who fear the power.