Quote:
Originally Posted by Dion
Costco gas is most always the cheapest gas in Calgary. They might raise their prices with others but on average it's still cheaper. That being said it does make me wonder how they can sell their gas at a cheaper rate while still paying the same rate as others from the refinery. Is it based on volume of sales or that other retailers are just greedy.
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It's based on not making a profit on the gas side of their business.
Coop kicks back 5-6 cents a litre in equity/dividends. Superstore gives you 7 cents a litre in points. The co-op one probably shows the actual break even cost on the gas as they dividend / put into equity all profits.
The reason you don't see fluctuations is that it likely doesn't work to increase revenues. If I lower my price my 1 cent and everyone immediately matches all I have done is cost my self money without gaining market share. After trying that a few times and not seeing any benefit and only costs I would stop doing it and just follow the herd.