Quote:
Originally Posted by driveway
Okay, sure, I buy that, but then what did you mean when you agreed with this statement:
If I may remind you of what you said it was:
So then, if the person managing the site (retailer) is being paid a salary by the owner (Esso, subsidiary of Imperial Oil, subsidiary of Exxon Mobil - largest company in the world by revenue, 2007) who is the poor schmuck you keep talking about who is running his buisness on such a thin margin?
Since you said the relationship is not exclusive, I am totally prepared to accept that there are franchise owners out there who are trying to make a living on thin margins of gasoline and sundry items. However if the 'common' relationship is one of salaried manager and corporate ownership, then you have to recognize that the price at the pump is directly and irevocably tied to the grotesque overall profit margins of the major oil-and-gas companies, since they are the ones selling themselves the gas, essentially.
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it's not a salary the way most employees receive one. They aren't employees of the oil company they are independant business people who get a sum of money (maybe the proper word is commission) based on some kind of formula. that formula will involve some kind of cpl payment (ie total volume at the site times something like 3cpl) and will get a percentage of store sales ... each product may have a different percentage to it. And then they would have convenience targets that give them bonuses (at least that is how it worked aobut 7 years ago) But the contracts are slanted very strongly to compensation based on convenience sales.
So to be clear, Imperial may own the land, they may or may not own the things above the land like the carwash or whatever is there, but regardless of who owns what the oil companies slant the deals so that the retailer is focussed on pushing convenince items.