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Originally posted by kutulu
I understand what you're saying about the loss leaders Cynthetiq, but I think you have it backwards. The sodas are sold at huge markups. The soda, cup, ice, lid, and straw cost about 25 cents and they are sold for between $0.69-$1.19 depending on the store. At worst they make 176% profit and at most they make 376% profit. Candy, chips, and all the other stuff have huge markups too. The convenience store is the cash cow. Sure, they make a profit on the gas, but since they sell such large volumes, they put much lower markups on the gas.
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Right which is why there is always some sort of sale on 12 packs, milk, candy.. blah blah.. whatever. I just need to get you to pull up to my gas pump and fill up with my gas instead of the guy down the street. since the cost difference between competors is small but based on volume, then I need people to empty my tanks and then I can fill them up again.
for some people that difference in percieved sale price for the extra items is enough to draw some to go to a gas pump.
the best of course is to stop at the store buy the sale item and then go to the cheaper guy down the street
Quote:
Significant increases in energy prices may be required for the United States to meet the reductions in greenhouse gas emissions agreed to in December 1997, according to a report released today by the Energy Information Administration (EIA). This study, Impacts of the Kyoto Protocol on U.S. Energy Markets and Economic Activity, was undertaken at the request of the United States House of Representatives Committee on Science to analyze the impacts of the Kyoto Protocol on U.S. energy markets and the economy.
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iamnormal that's very compelling but TOTALLY different than what you mentioned in your previous post. I don't know if you are just shy in typing, but good job, it would be even better if you gave YOUR input into it as well instead of a cut and paste, because I'm going to still take my thoughts as I read into this and filter it with them instead of seeing it from your point of view.