silly fuel price differences

[idtrans]

Ok I am in Youngstown, OH the truckstops are all at around $4 per gallon. I was driving in downtown and saw a small gas station with diesel for $3.69 "yes I filled my tanks LOL" why is the car diesel always cheaper in some places and then the truck stops outrageous retail priced? I understand the fuel discounts but my god that is a huge price difference.

Also in Laredo the truck stops are always .25 to .35 higher than the HEB on the loop for diesel.

 

[OntarioVanMan]

Ok I am in Youngstown, OH the truckstops are all at around $4 per gallon. I was driving in downtown and saw a small gas station with diesel for $3.69 "yes I filled my tanks LOL" why is the car diesel always cheaper in some places and then the truck stops outrageous retail priced? I understand the fuel discounts but my god that is a huge price difference.

Also in Laredo the truck stops are always .25 to .35 higher than the HEB on the loop for diesel.

Been saying that for awhile now....truck stops pretty much have a captive audience..
In theory...there is no free shower anymore....the difference between the TS and the corner filling station...pays the shower and a meal...

 

[layoutshooter]

Been saying that for awhile now....truck stops pretty much have a captive audience..
In theory...there is no free shower anymore....the difference between the TS and the corner filling station...pays the shower and a meal...

I doubt that the corner filling station could handle the volume of trucks. Many could not handle the height of the trucks. I would love to look at their "books" sometime. One of the many things I learned when I worked in retail was how "mark ups" work. I learned about "gross margin" and what it took in margins for a store to make money. I don't think that truck stop prices are quite as simple as we could like to make them out to be.

 

[idtrans]

Been saying that for awhile now....truck stops pretty much have a captive audience..
In theory...there is no free shower anymore....the difference between the TS and the corner filling station...pays the shower and a meal...

Heck I saved around $40 filling at off wall station and it paid for shower, nice dinner, and a gallon of lucas fuel treatment. LOL The other night there were a couple different drivers trying to sell fuel at a $1 per gallon but I just couldn't lower myself to get involved with that since after all it is theft.

 

[OntarioVanMan]

I doubt that the corner filling station could handle the volume of trucks. Many could not handle the height of the trucks. I would love to look at their "books" sometime. One of the many things I learned when I worked in retail was how "mark ups" work. I learned about "gross margin" and what it took in margins for a store to make money. I don't think that truck stop prices are quite as simple as we could like to make them out to be.

I would imagine the TS's have quite a cash to credit flow going...you figure the time for a transaction even if for a mere 8 hours delay over millions of gallons...somewhere at the difference in price they sure appear to be ripping trucks off...

 

[layoutshooter]

I would imagine the TS's have quite a cash to credit flow going...you figure the time for a transaction even if for a mere 8 hours delay over millions of gallons...somewhere at the difference in price they sure appear to be ripping trucks off...

It is not only about cash flow. At Cabela's we had to maintain a MINIMUM of 40% gross margin just to pay the bills. Cabela's has a LOT of overhead with the fancy stores etc. At Gander Mountian, with smaller, less fancy stores, we had to maintain 35% gross margin.

Items like guns have almost NO margin. 10% max and that high a margin was found only on the high end stuff. Most guns we broke even on or even lost money. That has to be made up somewhere. Clothing, on the other hand, had anywhere from 30 to 70% mark up. Fishing rods often had WAY greater margins. Some "Cabela's" brands rods that sold for the $100 to $150 dollar range cost Cabela's $30 each to buy them.

Margin in retail is complicated.

I am no saying that the pricing on fuel is right. I just know that I cannot really speculate too much. I simply don't have the entire story to look at.

 

[x06col]

But, if someone can sell fuel for $3.70 down the street, why can't they sell it for $3.70 up the street? If one has to trim their overhead, or down size their dividend payment to stockholders.....so be it. Just like our business, or any business you have to stay competitive to stay in business.

 

[OntarioVanMan]

But, if someone can sell fuel for $3.70 down the street, why can't they sell it for $3.70 up the street? If one has to trim their overhead, or down size their dividend payment to stockholders.....so be it. Just like our business, or any business you have to stay competitive to stay in business.

But, but, but the truck stops don't need to compete....have you seen any competition lately? nada, nothin..I've seen from state to state such even pricing within pennies....even Missouri is as high as Ohio....

 

[layoutshooter]

But, if someone can sell fuel for $3.70 down the street, why can't they sell it for $3.70 up the street? If one has to trim their overhead, or down size their dividend payment to stockholders.....so be it. Just like our business, or any business you have to stay competitive to stay in business.

As I said, I don't know their particulars. There are costs that cannot be trimmed. Taxes need paid, wages as well. Don't forget that unemployment insurance taxes have shot WAY up of late as well.

I don't know if we are being ripped off or not. I just know that it is not as simple as many think.

 

[layoutshooter]

But, if someone can sell fuel for $3.70 down the street, why can't they sell it for $3.70 up the street? If one has to trim their overhead, or down size their dividend payment to stockholders.....so be it. Just like our business, or any business you have to stay competitive to stay in business.

As I said, I don't know their particulars. There are costs that cannot be trimmed. Taxes need paid, wages as well. Don't forget that unemployment insurance taxes have shot WAY up of late as well.

I don't know if we are being ripped off or not. I just know that it is not as simple as many think.

 

[idtrans]

Yeah it must cost them allot of money to pickup all the pee bottles, and then lots more to get rid of all the pee bottles. LOL

 

[layoutshooter]

Yeah it must cost them allot of money to pickup all the pee bottles, and then lots more to get rid of all the pee bottles. LOL

Hazard waste disposal fees!!!

 

[layoutshooter]

Yeah it must cost them allot of money to pickup all the pee bottles, and then lots more to get rid of all the pee bottles. LOL

Hazardous waste disposal fees!!!

 

[Bruno]

But, but, but the truck stops don't need to compete....have you seen any competition lately? nada, nothin..I've seen from state to state such even pricing within pennies....even Missouri is as high as Ohio....

OVM (Ken) is right on this one. Our trucks would fuel at TA only but since the fuel discount isn't what is once was at the TA. Our drivers are using Flying J more. TA, Pilot flying J, and Loves knows that there isn't many other place to fuel at.

 

[OntarioVanMan]

OVM (Ken) is right on this one. Our trucks would fuel at TA only but since the fuel discount isn't what is once was at the TA. Our drivers are using Flying J more. TA, Pilot flying J, and Loves knows that there isn't many other place to fuel at.

Have you checked Speedway fleet accounts? Maybe it could be an alternative? at least every 17,000 points you get a $25 gift card....

 

[idtrans]

since I pay cash for fuel I try to always keep my eyes open for a deal and grab it as cheap as I can. The fuel card I use only if I must use or price is about the same where I am at then use the fuel card and get my .10 or so discount otherwise $$$ where fuel is cheapest.

Funny part is fuel is up and now freight is not going up at all from what I am hearing from the brokers. Must be that there is a ton of competition at the moment. I am glad that the company I am with now pays me every friday like clock work and not when they feel like paying me the loads I ran.

 

[Jefferson3000]

But, if someone can sell fuel for $3.70 down the street, why can't they sell it for $3.70 up the street? If one has to trim their overhead, or down size their dividend payment to stockholders.....so be it. Just like our business, or any business you have to stay competitive to stay in business.

I guess they don't have that much competition after all. Ever notice how a mom and pop truckstop will be WAY cheaper than the Pilot and TA, so long as they aren't on the same exit? If on the same exit, they will only be about .03 cheaper.

 

[layoutshooter]

I guess they don't have that much competition after all. Ever notice how a mom and pop truckstop will be WAY cheaper than the Pilot and TA, so long as they aren't on the same exit? If on the same exit, they will only be about .03 cheaper.

I don't know, I have seen just as many Mom and Pop's that were higher on fuel as I have seen that were lower.

 

[greg334]

"I don't think that truck stop prices are quite as simple as we could like to make them out to be."

Actually they are.

A number of years ago we had a very good discussion about the margin of a price of fuel and it was revealed that it came in about 28 cents a gallon.

With that said, truckers are a captive audience, it doesn't take $2 bag of $1 worth of M&Ms to figure that out.

 

[Desperado]

fuel taxes at truck stp your paying them at some gas stations your paying reguler taxes