Berberis Posted November 25, 2010 Share Posted November 25, 2010 I think garages only get about 5p per litre....this has to pay for the staff etc... When petrol was about 119p/litre the breakdown was 57p duty 18p VAT 39p for the fuel 5p to the retailer not a huge profit to be made there.. for a product that the public come to you for, serves themselves and all you do is collect the money, selling petrol is a good little earner. The average car takes 50 litres of fuel, that's £2.5 per customer for very little work. Now think ho many customers an average 8 pump station can serve in an hour. Link to comment Share on other sites More sharing options...
truman Posted November 25, 2010 Share Posted November 25, 2010 for a product that the public come to you for, serves themselves and all you do is collect the money, selling petrol is a good little earner. The average car takes 50 litres of fuel, that's £2.5 per customer for very little work. Now think ho many customers an average 8 pump station can serve in an hour. Does the average customer put in 50 litres of fuel?Obviously it's such a good earner that there are thousands of new filling stations opening up all over the place..oh,wait a minute... Link to comment Share on other sites More sharing options...
Obelix Posted November 25, 2010 Share Posted November 25, 2010 Add in the work and capital costs to create the station, regulatory framework around checking the tanks and fuel, dipping tanks, and of course the inevitable driveoff and it's not that easy... Still it doesnt require much work once it's set up to be sure - it's one of the easiest things to automate with PIN at the pumps. Link to comment Share on other sites More sharing options...
watchcoll Posted November 25, 2010 Share Posted November 25, 2010 5p per litre profit? So for arguments sake, lets say a car holds 40 litres of fuel. 30 cars per hour per pump. 8 pumps So thats £0.05p x 40 x 30 x 8. Thats £480 per hour profit per station They seem to have around 9500 stations across the country so multiply that by £480. Id say thats a pretty decent profit. what everyone else said about your assumptions. the busiest times for most 'regular' fuel stations, ie not supermarket ones but ones on main commuter roads, are 7.30am-9.30am (before work), 3pm-4pm (the school run) and 4.30pm-6.30pm (after work hours). even at these times its not possible to get 30 people through a pump in an hour even if they had that many customers. outside of these hours the forecourt is usually dead. also supermarkets tend not to get as much business trade (who all have fuel cards for shell/esso/BP and fill their tanks up to 100litres etc) so their main customer base is their shoppers during the busy periods for their food stores. add to that that people dont fill to litres, they fill to price - so some people will religiously put £10 in once a week, they dont work out the litres. average spend is usually £20 per domestic car. it all works out at a lot less than £480ph. never mind the overheads involved in running the forecourt - staff, the building rent, heating etc etc Link to comment Share on other sites More sharing options...
TimmyR Posted November 25, 2010 Share Posted November 25, 2010 as an aside: they get huge amounts of free marketing data from you people with your club cards - which give you some miniscule amounts of money off. This allows them to target adverts at you all so you subconsciously think you need to buy stuff you don't need. When will everyone learn? Link to comment Share on other sites More sharing options...
HeadingNorth Posted November 25, 2010 Share Posted November 25, 2010 as an aside: they get huge amounts of free marketing data from you people with your club cards - which give you some miniscule amounts of money off. This allows them to target adverts at you all so you subconsciously think you need to buy stuff you don't need. When will everyone learn? I learnt to ignore the advertising many years ago. I just collect the free discounts. Link to comment Share on other sites More sharing options...
TimmyR Posted November 25, 2010 Share Posted November 25, 2010 I learnt to ignore the advertising many years ago. I just collect the free discounts. Did you really though? How can you be sure you aren't buying things just because you saw an advert for them? Would coca-cola exist if it wasn't for the marketing? And secondly the "discounts" as you call them are totally balanced out by the relative expensiveness of other items that you also pop in your basket while your collecting them. Its all worked out in such a way as to make Tesco make as much money as possible. "Every little helps" them make money. Link to comment Share on other sites More sharing options...
shortcrust Posted November 25, 2010 Share Posted November 25, 2010 as an aside: they get huge amounts of free marketing data from you people with your club cards - which give you some miniscule amounts of money off. This allows them to target adverts at you all so you subconsciously think you need to buy stuff you don't need. When will everyone learn? Everyone knows this, and few of them care! I buy what I want to buy - nothing less and nothing more. And the clubcard rewards aren't miniscule - I've had over £200 in restaurant tokens from my clubcard points this year. Link to comment Share on other sites More sharing options...
watchcoll Posted November 25, 2010 Share Posted November 25, 2010 as an aside: they get huge amounts of free marketing data from you people with your club cards - which give you some miniscule amounts of money off. This allows them to target adverts at you all so you subconsciously think you need to buy stuff you don't need. When will everyone learn? thats the whole point of marketing isnt it? most people dont care about the what they use the data for. and theres nothing personal about it - its a thousands of women in a particular town in a particular part of the country prefer heinz beans to HP beans, and the men prefer mach3 to wilkinson sword type of thing. and they dont get it free, it can cost them upto 3p in every £1 you spend with them! I learnt to ignore the advertising many years ago. I just collect the free discounts. me too. i just use the money off voucher and only use the others if its something i usually buy or need anyway. people are capable of making a choice whether to buy something or not to buy something. Link to comment Share on other sites More sharing options...
shortcrust Posted November 25, 2010 Share Posted November 25, 2010 Did you really though? How can you be sure you aren't buying things just because you saw an advert for them? Would coca-cola exist if it wasn't for the marketing? How very patronising.... And secondly the "discounts" as you call them are totally balanced out by the relative expensiveness of other items that you also pop in your basket while your collecting them. Its all worked out in such a way as to make Tesco make as much money as possible. "Every little helps" them make money. Even more reason to collect the points! If you're paying for them, you may as well get the benefits. Link to comment Share on other sites More sharing options...
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