More Plant Shutdowns

[Leroy A. Eckert]

In the 80's to mid 90's my independent truck stop grossed between 10
and 25 cents per gallon. I spoke with an independent operator a couple
of weeks ago here and that margin is now generally 10 to 15 cents
depending on which way the price is moving and how smart you are. So
there is room to reduce your gross margin 2-3 cents and make it up in
volume, and depending on how crafty you are in committing to forward
fuel if you have that capability one can make money and many time lots
of it. You also can get whacked.
However, consider the risk now. Based on 10c per gallon gross profit.
Includes all applicable taxes for simplicity.
Cost per load Now--7,500x$4.10=$30750--Retail=$4.199--Gross Profit=$750.00
Cost per load Then--7500x$.90=$6,750--Retail=$.999--Gross Profit=$750.00
I carried several hundred thousand dollars of receivables then on card
lock. That would be four times greater today with the same profit.
When would you have rather owned a truck stop? I am glad I am out.

Leroy Eckert
1990 WB-40 Smoke N Mirrors
Dahlonega, GA
Royale Conversion








--- In WanderlodgeForum@yahoogroups.com, "Ryan Wright"
wrote:
>
> I fill up at a little bitty gas station located a couple of miles from
> my house. They only have four pumps and when I roll in, I block two of
> 'em. They don't mind, of course, since the fuel flows like a flood as
> long as I'm parked there. Their prices are consistently 5 to 10 cents
> cheaper per gallon than everywhere else. In fact, the local cops
> "suggested" he raise his prices and generally harassed him for
> "causing" traffic jams in front of his store by offering such low
> prices.
>
> Not sure how he does it. 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. There doesn't appear to be anything wrong
> with his fuel or any shenanigans going on, I've filled up there twice
> now and haven't had any problems.
>
> -Ryan
>
> On Tue, Apr 22, 2008 at 4:16 AM, Dorn Hetzel wrote:
> >
> > The local Love's truck stop here in Hogansville was $4.149
yesterday "cash"
> > price.
> >
> > The odd thing with loves is the diesel pumps on the "car" side
give the
> > "cash" price when I use my credit card, but the pumps on the
"truck" side
> > differentiate.
> >
> > So I fill up on the "car" side. Only annoying thing is only $75
per card
> > swipe...
> >
> > Dorn Hetzel
> > 77FC35
> > Hogansville, GA
> >
>