Interesting gasoline pricing strategy

In reality, auto fuel is not an open market commodity and whole sale prices are not set by supply and demand beyond what the consumer can afford. Everyone needs gasoline; there are no competitive fuels. The oil companies have us by the … The only way the customer can exert pressure is to run more economical cars as a group and buy cars that run on alternate fuels. So, though we complain about the of lack standardized gas prices, it’s not the retailer who is whole to blame. Find me one retailer who is getting rich pumping gas. I don’t blame them one bit for charging what they can. They are the little man just like the rest of us with bills to pay and try to make the most when they can…it isn’t like they have a consistent market, at least around here with things like tourism and bad weather having big affects on business swings.

dagosa Been there done that. As a service station owner/operator in the mid 1970s the nickel per gallon gasoline and diesel profits would pay the electric bill if you were lucky. There were no gas stations with convenience stores. If you made a few dollars profit it was by twisting wrenches and busting knuckles but if you diagnosed and completed a job well done it was much more satisfying than pumping gas (Oregon), washing windshields, and selling Twinkies!

For those of us with < 50 miles work commute and fuel efficient cars, I'm not sure why gas price matters when it's a 10-20 cent difference.

@xaml, it’s the general principle of not wanting to get ripped off. Warren Buffet was known for refusing to buy soda from hotel vending machines! He could have paid 10X market rates and never felt it; he didn’t want to feel like a sap, or a sucker, by overpaying.

Why would I…of much more modest means…want to get “played” by overpaying, regardless of whether or not it makes a meaningful difference in my budget? Getting the most for your money becomes a sport of sorts! I buy my motor oil on clearance and stockpile. Rather than go to the hardware store and spend $50, I’ll go to the supermarket…buy a $50 gift card and pocket the $3 fuel savings–I feel like I “scored points” in a game.

The only time I’ll pay more on gas is to frequent a store that has free air. I think it’s a safety issue; I think charging for air is a dubious practice; I’ll pay up to a 10c/gallon premium to reward stations that offer it free. (I used to behave similarly for stations that didn’t require prepayment, but that ship has, alas, sailed.)

The only time I’ll pay more on gas is to frequent a store that has free air. I think it’s a safety issue; I think charging for air is a loathsome practice;

The problem is that it’s just as loathsome to stop in and air up your tires for free and then drive to the supermarket at the other end of the block to buy your gas because they’re cheaper. Watching that happen day after day is why I installed a coin-op air machine.

Sorry…probably overstated my intensity there. I edited it down a bit, since I didn’t mean it personally. I still like to vote with my wallet, though.

Nothing to be sorry about. I look at it this way, if you want some free tortilla chips and salsa with your dinner, you go to your favorite Mexican restaurant and get the chips and salsa that come with the meal. But you don’t go in, sit down and eat some chips and salsa and then leave to go to Taco Bell for your dinner.

We had the last free air hose (excluding tire shops) for miles around, and I would have 20-30 cars a day come in and use it. Maybe 5 of those would be customers. The rest would yank the hose out and drive over it on their way out, or complain that the gauge on the free air wasn’t accurate. So now it’s coin-op. I looked into a way to have a remote start on it that would allow us to turn it on from inside the building but couldn’t come up with anything reasonable.