k5wiv(at)sbcglobal.net
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 Posted: Sat Jun 21, 2008 2:06 pm Post subject: OT - Explain This |
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Not quite the way it was when I had a gas station. I received my gas from the distributor on consignment. I had the option of setting my pump prices at what ever I chose, but when the distributor contacted me about a price chance, I read the pumps, paid for the gas sold at the previous cost and we split the change. (i. e. if the price went down $0.02, we each absorbed $0.01, etc.) I did have a minimum margin, so if the price went too low, I didn't loose all of my profit. In other words, I paid for the gas, in arrears, at the distributor established price, and if I chose to accept a different margin, could set the pump price at what ever level I chose, but believe me, it was best for me to use the established price. And no, we didn't sell beer or cigarettes (this was before the days of self service) and we didn't make more than expenses on gas, but by giving good service we made money on tires, batteries and accessories (and on oil changes, lube jobs and wash and wax).
Things have changed!
Jack & Cecilia Sargeant
1127 Patricia St.
Wichita, KS 67208-2642
316/683-5268 [quote] --
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