The cost of gas . . .

by sizemik 6 Replies latest jw friends

• 

  sizemik

  I've just completed an interesting exercise on the price / margins etc on supplying fuel . . .

  If I sell $1,000,000 worth of fuel per annum . . . (yeah, a million bucks worth)

  I will earn a GROSS profit of $20,000 . . . before retailing expenses (wages, insurance, certification,advertising, lease etc)

  And it will require a working capital investment of $20,000 to have the privelege . . .

  So who's making all the money? . . . not me!

  If I sell each customer a chocolate bar and a coke . . . I will make MORE profit than a tank of gas.

  Just thought you'd be interested to know . . .
• 

  nicolaou

  Careful mate, I opened this can of worms a few years ago - ouch!

  Nice to see you back, hope you had a good time . . .
• 

  GOrwell

  and with credit card fees (especially the premium cards), that 2-3% evaporates...
• 

  Broken Promises

  If I sell each customer a chocolate bar and a coke . . . I will make MORE profit than a tank of gas.

  So THAT'S why they keep trying to push the junk food on us when we walk into the store...

  My mechanic sells petrol although mechanical repairs is his main business, and he's finally decided that it's not worth supplying petrol, he simply doesn't make enough of a profit to make it worth his while. He's flat out doing his mechanic's side of the business (he's a good mechanic).
• 

  sizemik

  Yeah BP . . . it appears to be the case. This place has a large 5 bay workshop for two of my sons to do their thing in . . . retailing gas will only be worthwhile if it on-sells retail products from the cafe . . . no wonder SSn's stock grocery items. I can't see retailing gas doing any more than breaking even of itself . . . which kinda irritates the shit out of me to be honest.

  It basically becomes a means of promotion only. It's on the main arterial route in the SI . . . so will move a mountain of their product. It's suprising they've managed to screw the retailer down to this level. The Gross Profit works out at about 1.9 %. If I can't lean on an opposition supplier enough to get a decent deal, they can shove it.
• 

  wobble

  Hey sizemik !

  you aren't inferring the petrol companies are a greedy lot of bastards who keep all their $$$billions of profit for themselves and their shareholders are you ?

  A helluva lot of Fuel Stops have gone over the decades in the U.K , those that survive have amini supermarket attached, some of these stop selling fuel and just keep the shop.

  Soon,as we have to travel to find an outlet it will cost to make a trip just to get fuel, crazy world.
• 

  WTWizard

  The real cost of gas is because of stupid regulations that prevent people from getting past petroleum. Sure, they talk about it--only to find some flimsy "environment" excuse to prevent development. And the "education(??)" system sucks--worldwide. This prevents scientists from rising that could find a way to harness unlimited energy to power things, keeping fuel costs down.

  Another reason energy costs are high is the Rothschilds. They use the System to tax everything, keeping the oil producers in debt so they have to charge an arm, a leg, and a mint (and your firstborn) for oil and gas. A surprising amount of everything we buy goes to finance the banking system, gas included. Most of the capital is loaned at interest (usually much more than the 0.25% you get at the bank) by the banking system. This keeps people that produce and refine oil in debt (besides the stupid environmental rules that prevent them from improving the system). Gas stations also get loans from these banks (with links to the Rothschild system) at steep interest and need to get that interest if they wish to stay in business.

  Of that $4 gallon of gas, I wonder how much of that actually finances the debt system and how little is actually for the gas itself.