Thomas Rogers
Well-Known Member
The local Mobil down the road put up a small sandwich board sign that lists their CC prices. Unleaded 87 is $4.04 on that board, but on the big overhead sign the (cash) price is listed as $3.97.
I know several stations are doing this now.
What do you all think of this practice?
I don't get it, and I think it will hurt stations in the long run. I say I don't get it because I was assuming all along 2 to 3 percent of the each dollars sale was going to the CC company when I purchased with a card, and the station's profit per gallon allowed for that. As gas has gone up in price, has the profit margin gone down that much for the station owner?
Yes, I understand that if gas is $4, then that's 12 cents in CC fees. But when gas was $2 that was 6 cents. Assuming the profit margin remained the same between $2 and $4 gas, then I don't see why stations should be charging a premium for CC purchases now.
Seems strange to me.
TJR
I know several stations are doing this now.
What do you all think of this practice?
I don't get it, and I think it will hurt stations in the long run. I say I don't get it because I was assuming all along 2 to 3 percent of the each dollars sale was going to the CC company when I purchased with a card, and the station's profit per gallon allowed for that. As gas has gone up in price, has the profit margin gone down that much for the station owner?
Yes, I understand that if gas is $4, then that's 12 cents in CC fees. But when gas was $2 that was 6 cents. Assuming the profit margin remained the same between $2 and $4 gas, then I don't see why stations should be charging a premium for CC purchases now.
Seems strange to me.
TJR