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Author Topic: loyalty customers Back to Topics
glride

Rookie Author
Knoxville

Posts:22
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Joined:Aug 2011
Message Posted: Dec 25, 2012 7:30:09 PM

Have the Gas Buddy staff checked into the idea of a loyalty discount for their users. It seems to me that this size of buying group could negotiate a discount country wide for it's members.

[Edited by: glride at 12/25/2012 7:31:37 PM EST]
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Gas_Buddy
Champion Author Maryland

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Points:3,544,095
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Message Posted: Dec 27, 2012 4:32:44 PM


glride:

Gas station and other business loyalty "discounts" aren't operated in a vacuum. In the case of a gas station accepting it's own company's discount card (generally a credit card), it's the parent organization that's offsetting any cost/price differences in order that the gas station doesn't take a loss on sales. In the case of a separate business providing a gas purchasing discount (such as Winn-Dixie or Kroger's fuel discount), it's generally limited to one fuel brand (frequently Shell) and limited to a certain amount of gas that can be purchased. And, more importantly, it's based on the gas purchasing customer buying spending X amount of purchases from the store before the customer can "take advantage" of the fuel discount.

In some cases the fuel brand covers the discount in order to get free advertising and "overflow" purchasing", in other cases, the other business subsidizes the fuel discount. But it's not, to the best of my knowledge, get a "discount card" and use it at virtually any gas station you want. It's a very directed purchasing, "loyalty" if you will, relationship.

Who would Gas Buddy work their relationship with? It obviously couldn't be with all brands and it's unlikely that individual, unbranded gas stations would benefit from the Gas Buddy program. But, say that Gas Buddy has an "arrangement" with Fred's Gas Station in Knoxville to give a discount to Gas Buddy members. What does Fred's get out of the deal other than losing a couple cents from the 9 to 12 cent per gallon mark-up it currently gets? And what does Gas Buddy get out of the deal? Fred's posting a sign that says "Join Gas Buddy For Fuel Savings"? Or would either Gas Buddy pay Fred's to offset the "discount"? Or would Fred's pay Gas Buddy for "promoting" Fred's station?

Sorry, but I can't see how your suggested "discount country wide" would work, even for a buying group the size of Gas Buddy. Not unless you have more ideas or procedures you haven't included in the original post.
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kwzh
Champion Author San Jose

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Message Posted: Dec 27, 2012 2:34:53 AM

Gas stations are pretty much unaffected by GasBuddy's existence.
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DiannaFan
Champion Author Utah

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Message Posted: Dec 26, 2012 10:41:01 PM

I minorly disagree with Bytebug about stations losing money. The less competitive stations certainly do, but the most competitive stations gain customers from GB. The margins might be smaller, but they can make up for that in volume.
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scoutmaster
Champion Author Pittsburgh

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Message Posted: Dec 26, 2012 8:09:49 AM

Agree with bytebug.
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bytebug
Champion Author Orange County

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Message Posted: Dec 26, 2012 7:58:56 AM

Given the amount of money gas stations lose because of GasBuddy, doesn't seem very likely. Plus would conflict with the stations own loyalty programs.

Requesting this thread be moved to the improvements category.

[Edited by: bytebug at 12/26/2012 8:01:09 AM EST]
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ziyulu
Champion Author Austin

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Message Posted: Dec 26, 2012 5:18:29 AM

How about a membership card that you can use to scan at various gas stations?
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CampKohler
Champion Author Sacramento

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Message Posted: Dec 26, 2012 2:23:27 AM

This suggestion has been added to the Suggestion Tracking List as a new subject.

Any way of saving on gas is of course welcome, but GB may not wish to sign an exclusive contract with a particular retail brand, something that may appear to impair its impartiality. However, if they could negotiate with several brands at the same time, that might not be of such a concern. Perhaps even if all of GB-dom is taken as a whole, it might still only be a tiny drop in the vast ocean of fuel sales.
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