Canberra - Costco open Fuel Servo

[F|sh]

Yeah I can't help with margins as the wife is employed by a fuel company

[Terribleone]

And which day of the week was that 2c/l made?

What are you getting at?

[dirtyrex]

The fuel company makes lots more than 2c. That's the model, the franchisee makes money from the store and the fuel company supplies and makes profit from fuel.
If you can supply your own fuel (I can), then you can keep the profit. Obviously yes, it's a volume game and getting that up is a challenge but my fleet of trucks and trucking contacts help there.
Forg: Vending machines, might throw people a free coke for over $50 spend.

[CussCuss]

What are you getting at?

I thought it was pretty obvious, how do the varying prices work? Unless you are saying you basically dont buy fuel at all and just get a flat 2c/l commission?

[dirtyrex]

The varying prices make no sense, they're not related to the wholesale price as it never jumps around like that. There are sites which show all the graphs and I get the wholesale price daily.

[CXTdreamer]

Tell that to the Adelaide diesel price. Was down at almost petrol last weekend.

Where in Adelaide? I go through two tanks of diesel a week and I haven't seen it much closer than 20c from the ULP price, its consistently mid-$1.30's and ULP is in the teens

[exwrxex]

Friend of mine in Melbourne with servos says 'there's no money in it'. Coles/Woolworths have apparently made life very difficult for them.

[OLDIE]

Where do Costco get their fuel??

[IMOA]

I thought it was pretty obvious, how do the varying prices work? Unless you are saying you basically dont buy fuel at all and just get a flat 2c/l commission?

My understanding with the franchise stores is that the fuel in the tanks at the stations is owned by the fuel company and they can change the cost of it at a whim, ie, in 15 minutes the fuel you're selling will cost $1.38/l

[Terribleone]

I thought it was pretty obvious, how do the varying prices work? Unless you are saying you basically dont buy fuel at all and just get a flat 2c/l commission?

Every servo owner has a different deal with the parent company. Our place made a flat 2c/L. We ultimately set the price in that area and undercut all the other places meaning we had huge volume of sales making up for the small comission. I know a bloke who owns an independent servo in inner city CBD and he buys off whoever will give him the best price on the day. He's on average 8c/L more expensive but there isnt another servo any where near him. He makes 10c/L on average.

[dirtyrex]

Every servo owner has a different deal with the parent company. Our place made a flat 2c/L. We ultimately set the price in that area and undercut all the other places meaning we had huge volume of sales making up for the small comission. I know a bloke who owns an independent servo in inner city CBD and he buys off whoever will give him the best price on the day. He's on average 8c/L more expensive but there isnt another servo any where near him. He makes 10c/L on average.

What suburb was yours? Do you remember average daily (or monthly) volumes per product?

[Terribleone]

The Gap. I dont remember volume, it was about 5 years ago. I can find out tonight.

[dirtyrex]

That'd be appreciated if you could, thanks mate. Just curious.

[TonyJZX]

if you have a chain of independents and the profit on fuel is just paying for rent and indian costs, what is actually making you money?

milk bar stuff?

[Dave75]

Where in Adelaide? I go through two tanks of diesel a week and I haven't seen it much closer than 20c from the ULP price, its consistently mid-$1.30's and ULP is in the teens

ULP $1.13

Diesel $1.22 in Gawler this morning. [has been all week]