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Author Topic: Don't Boycott Gas Back to Topics

Rookie Author

Joined:Oct 2012
Message Posted: Oct 4, 2012 4:02:08 PM

One way to bring gas prices in line with reality is to stop buying anything but gas from the oil companies. No more cigarettes, papers, pop, sandwiches, candy, coffee, lottery tickets etc., etc. The industry has spent millions over the last dozen years creating sales other than gas with huge market-ups. This cash flow is most important to their operations and if sales were reduced even slightly we would see more competition within the industry. Any major reduction in confectionary sales would be disastrous for them. Stop buying this stuff from them, save some money as it’s always cheaper at grocery stores, and join the fight against high gas prices.
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Veteran Author Miami

Joined:May 2010
Message Posted: Jul 13, 2013 8:38:43 PM

good point
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Champion Author California

Joined:Jan 2012
Message Posted: Jul 13, 2013 2:24:05 PM

I never go in the store part, unless I need a bill that is in better condition.
then machine will take it.
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Champion Author Cleveland

Joined:Aug 2004
Message Posted: Jul 13, 2013 9:18:44 AM

Since more often than not, stations are LOCALLY OWNED, it is the local owner - your neighbors - who make the money from the ancillary sales of products other other gasoline. Gas is often a 5-6 cent profit per gallon. Thus, volume is the key in gas sales. At 75 cents per car profit, you can see you'd need a lot of cars to make any real money.

That's where Slurpies, KitKat bars, and hot dogs come in. There is real profit there. I do not buy anything from gas stations. I don't even go inside. I use Pay-At-The-Pump and drive away.

But, understand this: A corporate station does take the money and run. But, how are they reinvesting it? Yes, their executives make too much money. But, drilling costs money. Shipping the oil - if found - costs money. Building new refineries and storage facilities cost money. Maintaining stations, trucks, and paying employees costs money.

Now, are we seeing it?
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Rookie Author Vancouver

Joined:Oct 2012
Message Posted: Nov 6, 2012 11:09:51 PM

I’ve waited a few days to see if there might be constructive comment on my approach to creating some pressure on the oil companies to lower prices at the pump. While I understand some of the feedback, I have the feeling that I have failed to make my case clear enough. If you would just take a moment to consider how much the oil companies have invested into creating non-gasoline sales revenue, you then have to appreciate how important this is to their retail operations. This is the proverbial weak link and while I have some sympathy towards the individuals that operate
the stations under franchise agreements, they too must be considered complicit in the conspiracy to create a non-competitive market allowing for inflated prices we pay at the pump. Unfortunately in every battle there is always collateral damage and in this case the station owners are in the way of lower prices. I still maintain if sales of sundry items were to be substantially reduced, the oil companies, to protect both the retailers and their own interest, would then become more competitive in order to attract business back. While you might not go inside to pay, take note the next time you fill up just how many customers do and at the same time purchase any number of items.
I find it somewhat disappointing that this site didn’t offer more dialogue but rather condescending opinions. I wasn’t looking for a a lesson in economics 101. It’s too bad the majority contributors have really nothing to say.
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Rookie Author Oregon

Joined:Jul 2007
Message Posted: Oct 16, 2012 11:40:42 PM

Just like on a cruise ship they don't break even or profit unless you buy the drinks and everything else in the "Convenience" store. Larger stores with gas stations sell a higher volume at a lower price and a better option in the grocery store for prices on the items available in a AMPM or equivalent. If you fill up more often when prices are on the rise you will save more money instead of waiting until the tank is empty and the price have risen more. A regular routine is hard to change especially when you have a tight budget.
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Rookie Author British Columbia

Joined:Sep 2012
Message Posted: Oct 9, 2012 4:21:46 PM

Gasonly12 is right. Exactly what I do. Gas station convenience stores are a rip-off anyway. Everything top dollar. Always have been always will be. If you have money to waste you shop there but not me!
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Champion Author Stockton

Joined:Jun 2008
Message Posted: Oct 8, 2012 1:37:24 PM

What Gas_Buddy said.
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Champion Author Maryland

Joined:Aug 2004
Message Posted: Oct 7, 2012 8:53:44 PM

First, assuming Gasonly12 will return to this topic, most people don't buy from the convenience stores attached to gas stations. Most, as you read in the discussion topics repeatedly, prefer to pay by credit, at the pump, so they don't waste time shopping in the store; they prefer to gas and go.

Second, the mark-up for gas is generally about 9 to 12 cents per gallon, which means that, if there are no in-store sales, the gas station has to pay all operating costs from that 9 to 12 cents per gallon. If that's not enough to cover operating expenses, then the station needs to increase that mark-up in order to cover costs - and to stay in business. If the typical gas station sells 100,000 gallons of gas per month, that means the station takes in perhaps $12,000 (or considerably less). From that money, which many here call "profit", the station has to pay rent, salaries and benefits for several or more people, franchise fees (if it's branded), maintenance and upkeep, and taxes. And it has to pay insurance, which is not a litte amount for such a business. And, it has to not only pay off the cost of investing in the business and finance charges, it also has to pay the credit card fees so you can pay at the pump without having to go in the store, whether you buy anything there or not.

So if a gas station takes in $12,000 a month, $144,000 a year, that's a big deal, right? Making one heckuva lot of money isn't he? Now let's take the salary of one employee per week, earning minimum wage, about $300 a week (meaning he earns about $15,000 a year to live on.

Okay, break time: Do you want to or expect to or think you can live on that much a year? or that little a year? Or do you think that people should earn a little more than $15,000 a year?)

Okay, if you think that the gas station needs only four people to operate the station in a month, that means you're deducting four $15,000 salaries a year from your $144,000, leaving you $84,000 a year. From that $84,000 a year, take away rent. Want to say that rent for a decent location is what? $5,000 a month? Maybe more? Let's even say that rent is $3,000. That means you're paying $36,000 a year, leaving you $48,000. Pretty good, isn't it? $48,000. That should be enough to pay off the loan the owners took out to open the business, finance charges. Of course we still haven't paid for utilities, and the accountant, or maintenance and upkeep. And we haven't mentioned a return on the investment for the owner - because I don't think you'd operate a business if you didn't make a profit for your effort.

Oh yeah, from that $144,000, you still have to pay off credit card fees. And you don't pay a credit card fees based on your mark-up, you pay credit card fees based on the price at the pump. So if a station sells 100,000 gallons a month, and pays a 2.5 percent credit card fee, and gas costs, let's say $3.60 a gallon, that means it's paying about 9 cents per gallon in credit card fees, or about $9,000 a month in credit card fees. I'll simplify that for you; it pays $108,000 a year in credit card fees ($9,000 per month times 12 months a year). Forgetting that you still have expenses left from the $48,000, you now have to pay $108,000 in credit card fees.

Pretty hard to operate a business if you're not making enough money to cover your expenses. And if you can't cover your expenses because no one buys anything in the store, your only option is to raise gas prices so you have a higher mark-up to work from.

Sorry, Gasonly12, if you're expecting the gas station to stay in business, and to be competitively priced against other gas stations, so you can buy fuel at the least possible price (as far as gas stations go), it's pretty hard to see how your idea will work.

But I'm willing to listen to how you think a gas station can stay in business if it can't earn money any other way than by selling gas, and that way doesn't cover it's expenses let alone the owner/operator earn an honest return on his investment, just as you'd probably like to earn if you opened or operated a business.

But that's just my opinion. That's all.
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Champion Author Manitoba

Joined:Dec 2011
Message Posted: Oct 7, 2012 5:26:25 PM

Just reduce consumption..Ask ourselves if we really need to make that extra trip.
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Champion Author Lexington

Joined:May 2005
Message Posted: Oct 7, 2012 8:56:50 AM

You talk like a mule with his tail on backwards.
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Champion Author Pennsylvania

Joined:Jun 2003
Message Posted: Oct 7, 2012 8:19:39 AM

Personally I'm glad there are people that DO buy all that junk in the stations. It hopefully will keep the owner from raising their gas prices even more to cover losses.
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Champion Author Massachusetts

Joined:Sep 2011
Message Posted: Oct 7, 2012 12:28:11 AM

Hey, funny story. Gas boycotts don't work and NEVER WILL.
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Champion Author Dallas

Joined:Aug 2003
Message Posted: Oct 6, 2012 2:14:24 PM

uhhhh we got a boycott forum
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Veteran Author North Carolina

Joined:Aug 2012
Message Posted: Oct 6, 2012 11:44:24 AM

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Champion Author Manitoba

Joined:Dec 2011
Message Posted: Oct 6, 2012 11:00:14 AM

My suggestion is for everyone to reduce consumption.Hold off that unnecessary trip here and there.Can you imagine the impact if every North American cut out that one trip a year or even every two months.It would do damage and there would be a surplus sitting around and prices would drop.
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Champion Author Massachusetts

Joined:Aug 2008
Message Posted: Oct 6, 2012 6:03:47 AM

Why would you buy that stuff at the gas station anyways?

Too expensive and don't buy gas one day a week pick any day just don't go.
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Champion Author South Dakota

Joined:Mar 2005
Message Posted: Oct 5, 2012 8:20:37 PM

That will not break the gas companies, but the owners of the convinience stores.
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Champion Author Tucson

Joined:May 2008
Message Posted: Oct 5, 2012 4:16:18 PM

You have got to be kidding. If all they can sell is gasoline do you think the price will go down? What a brilliant
idea, lets sell everything at a loss.
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Champion Author Alabama

Joined:Mar 2011
Message Posted: Oct 5, 2012 12:44:20 PM

Good grief Gasonly12, you must be another graduate of the Obama School of Economics. From what I can see it must be located somewhere in Canada.
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Champion Author Stockton

Joined:Jun 2008
Message Posted: Oct 5, 2012 12:37:34 PM

Oh, oh, just wait til Gas_Buddy reads this! He's going to tear you a new one.
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Sophomore Author Illinois

Joined:May 2008
Message Posted: Oct 4, 2012 11:31:49 PM

This strategy presumes that gas sales are profitable for the station owner. This is not typically true. The reason other things are higher, is that the gas prices will get you to stop in the store and buy other things, which are marked up more. Also, there is a convenience factor. For many things it is possible to find it for a less expensive price, but convenience is worth the extra price to some people. So, I agree with the post that boycotting these items would result in higher gas prices, not lower.
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Champion Author Chicago

Joined:Feb 2011
Message Posted: Oct 4, 2012 4:52:31 PM

How many times are you going to post the same message Gasonly12. You created this topic in the wrong category.
Your plan to lower gas prices is to stop buying cigarettes, papers, pop, sandwiches, candy, coffee and lottery tickets? Seriously, what nonsense.
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Champion Author Buffalo

Joined:Apr 2008
Message Posted: Oct 4, 2012 4:23:39 PM

LOL, I actually believe that it would have an opposite effect. The gas station operators still need to pay their bills, so if nobody bought stuff from inside the store, they would be forced to make up the money lost at THE PUMP!
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Champion Author Houston

Joined:Mar 2011
Message Posted: Oct 4, 2012 4:07:25 PM

Learn the business and go read the Boycott page of this board. The vast majority of all gas stations in the country are owned and operated by independent wholesalers and dealer. In otherwords Shell, Exxon, Chevron, BP, etc make 0 dollars from stores inside sales. A boycott such as you suggest would only hurt the local operators who are most likely your neighbors. They buy gas from the majors and are forced to take the price that is posted. Most make only 8 to 14 cents a gallon selling gas while most of their income comes from inside sales. To not buy from them would hurt them significantly and have no effect at all on the majors and other gas wholesalers.Bad plan man, bad plan.
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