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Old 08-20-2014, 07:14 PM
 
21,392 posts, read 15,551,642 times
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Quote:
Originally Posted by ntwrkguy1 View Post
I fail to see how that is possible, as most fountain drinks that I have ever purchased have ranged from 59 cents to a max of $1.49........unless of course you are talking about revenue instead of profit.

Gas station profits can be slightly higher. I have a friend who owns a station in NC, and he's averaging nearly 10 cents a gallon. His prices are higher, but his location is ideal, and people aren't willing to drive a bit farther to save 5 cents a gallon.


In houston I don't believe I've seen fountain drinks under a buck but whatever it is the cost is 5-15 cents
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Old 08-30-2014, 04:23 PM
 
12,149 posts, read 14,104,283 times
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Quote:
Originally Posted by oregonwoodsmoke View Post
The mark-up on gasoline isn't much. Gas stations make their money with the convenience store and selling cigs and lottery tickets.

The city is unlikely to get their fuel delivered any cheaper and the station attendants still have to be paid and some one has to clean the building and driveways. Electric bill still has to be paid and some sort of rent for the station site.

Maybe the city seized a gas station for back taxes and has rented it to themselves property tax-free? If they don't have to pay rent, that gives them a little advantage over commercial sites. It also makes them eligible for a lawsuit from the commercial stations for the unfair advantage.

The employees who run the station are going to be city employees with government benefits, so maybe the free rent advantage cancels out.

It will be interesting to see how this plays out.

You forgot that there are significant taxes on fuel (road tax, sales tax etc) which everyone pays.
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Old 08-30-2014, 04:27 PM
 
12,149 posts, read 14,104,283 times
Reputation: 17971
Quote:
Originally Posted by ntwrkguy1 View Post
I fail to see how that is possible, as most fountain drinks that I have ever purchased have ranged from 59 cents to a max of $1.49........unless of course you are talking about revenue instead of profit.

Gas station profits can be slightly higher. I have a friend who owns a station in NC, and he's averaging nearly 10 cents a gallon. His prices are higher, but his location is ideal, and people aren't willing to drive a bit farther to save 5 cents a gallon.

You do realize that soda fountain beverages cost like a nickel to dispense right? Ask your buddy in the gas station if he makes more from the fuel or the C-store.......I think he will tell you C-store by a mile.

C-stores make a gas station.....5% of a lottery ticket is profit to the store, stuff like ice or ready made food (pizza/wings/donuts) has stupid high margins. Walk through a C-store and price 10 common items and then walk through Walmart and price the same 10 items......you will be shocked at the margin difference.
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