Thursday, March 10, 2011

Prices at the Pump

Grace discusses the profitability of gas stations in the face of rising gas prices.

I also thought it was interesting that there is so little profit for stations on gasoline. Instead they want to draw customers inside to purchase beverages and snacks. It never occurred to me that the lowest priced gas station could also make a profit this way. If you lose a penny per gallon on gasoline to draw customers in but then sell the customer two sodas and a bag of chips, you are going to make more money than you would have with a higher price of gasoline.

Please read her full post.

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