Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
More Plant Shutdowns
04-22-2008, 05:38
Post: #22
More Plant Shutdowns
Ryan, this is much like Grocery stores saying they have margins around 1%

In neither case are they talking about gross margins, but rather net profits. A
lower gross margin with very high volume can produce net margins greater than
that of a low-volume, high-margin business. "Can" being the operative word - not
every discounter succeeds, by any means, but it is a workable situation for some
retailers, fuel or otherwise.

Flying J is a good example, but not particularly applicable in your
neck-of-the-woods because the FJ stations are Franchises rather than
company-owned. Elsewhere most FJs are company-owned and have lower prices than
those around them except where the competitors choose to price-match.

On 4/22/2008 at 10:25 AM Ryan Wright wrote:

>I always hear how gas stations operate on a
>penny per gallon margin at best, but this guy has been profiled in the
>local paper and claims that's BS and that he is still making a profit
>at the lower price point.
Quote this message in a reply
Post Reply 


Messages In This Thread
More Plant Shutdowns - birdshill123 - 04-18-2008, 14:11
More Plant Shutdowns - Mike Hohnstein - 04-18-2008, 14:31
More Plant Shutdowns - jim riordan - 04-18-2008, 14:45
More Plant Shutdowns - Henry Jay Hannigan - 04-18-2008, 14:46
More Plant Shutdowns - David Brady - 04-18-2008, 15:22
More Plant Shutdowns - mbulriss - 04-18-2008, 16:04
More Plant Shutdowns - Pete Masterson - 04-19-2008, 04:00
More Plant Shutdowns - Ron Thompson - 04-19-2008, 08:02
More Plant Shutdowns - Pete Masterson - 04-19-2008, 09:29
More Plant Shutdowns - Steve Pfiffner - 04-19-2008, 11:09
More Plant Shutdowns - mbulriss - 04-19-2008, 11:26
More Plant Shutdowns - Mike Hohnstein - 04-19-2008, 12:04
More Plant Shutdowns - Ryan Wright - 04-20-2008, 06:39
More Plant Shutdowns - Ron Thompson - 04-20-2008, 07:35
More Plant Shutdowns - mbulriss - 04-20-2008, 07:46
More Plant Shutdowns - Gary Smith - 04-20-2008, 08:24
More Plant Shutdowns - Bill Garamella - 04-20-2008, 12:34
More Plant Shutdowns - David Campbell - 04-21-2008, 07:41
More Plant Shutdowns - Ryan Wright - 04-21-2008, 11:29
More Plant Shutdowns - Dorn Hetzel - 04-21-2008, 23:16
More Plant Shutdowns - Ryan Wright - 04-22-2008, 05:25
More Plant Shutdowns - Don Bradner - 04-22-2008 05:38
More Plant Shutdowns - Pete Masterson - 04-22-2008, 07:09
More Plant Shutdowns - Ryan Wright - 04-23-2008, 08:38
More Plant Shutdowns - Leroy A. Eckert - 04-25-2008, 07:42



User(s) browsing this thread: 2 Guest(s)