Quote:
Originally Posted by Reggie Dunlop
No, the problem is that you don't "get" it. You want me to believe that petroleum retailers are doing so out of the goodness of their heart and if they really wanted to make a fortune they'd operate potato chip stands.
They're in the business of selling gas because there's money to be made selling gas. Maybe not as much as they hope to, but then isn't that the way it is with everything? Everyone hopes to make more than they do.
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Yes they would run potato chip stand if people would come to them ... which they won't. They come to the location for gas. Many retailers sell stuff at a b/e level or loss (called loss leader) to get you to buy other things. So no they don't sell gas out of the goodness of their heart they do it to get you to buy other stuff.
You would be very surprised to see where and how retailers make money. I don't know this but from the behavior of dealerships, I sense that they make very little from new car sales, they make their money from add ons and service later on.
Just so I can learn, how exactly does knowledge of geopolitical issues help you understand how retailing gasoline makes money? I haven't been able to make that connection yet.