Sunday, January 4, 2009

Confessions of a gas station owner(#8)

Recently i read an article called confessions of a gas station owner by J.D. Both on CNN.com. The article talked about how the higher gas prices makes the gas station loose money. Gas accounts for 70 percent of the sales but accounts for only 30 percent or the profits. The rest of the profits come from food, drink and tabacco sales. When the gas prices get higher customers are less willing to go into the actual store and buy something that makes the gas station more money instead of the gas which they get the same amount from that no matter the price. Gas stations have put in ATM machines and sell lottery tickets to drive people into the store so once they are inside they will want to buy food a drink or a tabacco product which keeps up the profits of the gas stations. i thought this was a very interesting because you would think that the higher the prices the more profit but in this case it is the opposite the higher the price the lower the profit.
link to the article: cnn.com

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