ddhr.org - Defunct gas station

Date: 2008 | 03 | 03

Defunct gas station (3)

Mar 3, 2008

I've mentioned this before, but I'll ask it again: How can a gas station possibly go out of business? If you have a product everyone wants, you overcharge for it, and you have even a mediocre customer base, how can you possibly not make a profit? #business

Comments

Scott

Mar 3, 2008

Gas station operators only make pennies on the gallon. The majority of the profit from gas goes to the refiners (Do a search on Exxon Mobil profits). Gas stations can only stay in business in one of two ways. Pump enough gas (very high volumes) to cover the operating costs (lease payments, payroll, insurance) or from a lucrative auto repair business.

Dave

Mar 3, 2008

Interesting first comment, Scott. I guess I think of profits in terms of corporate profits, which don't necessarily reflect the profits of individual gas stations.

Exxon just made history recently by reporting the highest quarterly and annual profits ever for a U.S. company. This is one of the reasons I don't buy gas from Exxon. And they're always about 10 cents more expensive.

Greg

Mar 3, 2008

About 4 years ago while traveling through Kansas City MO. I over heard two Managers for Sheetz talking about how much money they lost for gas sales. In one week it was over $10,000. They make their money on all the soda (pop), chili dogs and other over price snacks that you buy. So this goes along with support for what Scott previously posted.