Tuesday, May 15, 2007

Stop me before I sell again 

I guess my interview yesterday is being played on several stations in the Twin Cities, if emailers are correct. The gasoline boycott story in the STrib today has an interesting twist:
At least one local gas station in Ramsey is joining the campaign by refusing to sell gas from 6 a.m. to 6 p.m. today. But the nationwide campaign isn't likely to have an impact on Big Oil, industry analysts say, because motorists simply buy their gas one day before or after the called-for "Gas Out."
Why would the seller choose to participate in the boycott? Probably for publicity.
Some might think that gas stations make a lot of money when they charge $3.16 or more per gallon. It turns out when prices are this high Yamoutpour said he actually loses money.

He showed his bill for Monday's gas delivery. He paid $3.07 a gallon for unleaded, but said after the fee for credit card transactions and the bills to keep his store open, he makes no profit.

Yamoutpour said he makes his money inside the store but when customers spend so much at the pump, his snack sales drop.
Nothing like a TV news story to help move those Fritos! Wonder how he allocates the fixed cost of operating the station between snack and gasoline sales?

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