Different Type of Pain at the Pump

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silverscreenselect
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Different Type of Pain at the Pump

#1 Post by silverscreenselect » Thu May 15, 2008 7:46 am

Apparently, older mechanical gas pumps aren't calibrated for gas costing more than 3.99 a gallon, and these stations are often the ones least able to afford either new digital pumps or the mechanical fixes.

http://tinyurl.com/3lml5x


Also, a lot of those pumps can't handle a purchase over $99.99.

Convenience store gas stations make very little money on gas sales, instead relying on the high margin food items inside. The more people have to pay for gas, the less there is to toss away on overpriced sodas and candy bars.

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Re: Different Type of Pain at the Pump

#2 Post by Jeemie » Thu May 15, 2008 9:37 am

silverscreenselect wrote:Apparently, older mechanical gas pumps aren't calibrated for gas costing more than 3.99 a gallon, and these stations are often the ones least able to afford either new digital pumps or the mechanical fixes.

http://tinyurl.com/3lml5x


Also, a lot of those pumps can't handle a purchase over $99.99.

Convenience store gas stations make very little money on gas sales, instead relying on the high margin food items inside. The more people have to pay for gas, the less there is to toss away on overpriced sodas and candy bars.
I remember during the oil shocks of the 1970s, there were signs at the gas pumps that helped overcome these limits. The signs read "Amount shown is half your cost" (that helped fulfill the legal requirements to accurately display the price).

Anyone else remember those signs?
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#3 Post by ulysses5019 » Thu May 15, 2008 9:47 am

I was Palo Alto this weekend and the pump (at a newish station) had a $75 credit card limit. My truck needed another $11.
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#4 Post by andrewjackson » Thu May 15, 2008 9:49 am

I remember prices shown in liters because ad boards weren't made to go over $1.00 per gallon. I don't remember "Amount shown is half your price."

I never bought gas at a gas station until about 1980 so that doesn't mean the practice didn't exist in my area.
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#5 Post by silvercamaro » Thu May 15, 2008 9:54 am

The local news last night had a story about area gas stations that have been selling gasoline blended with ethanol without telling consumers they were buying the cheaper mixture. According to several drivers with meticulous records, the ethanol blend reduces mileage by a noticeable amount, although somebody from Conoco (or a Conoco station) claimed that up to 10 percent ethanol shouldn't make a difference.

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#6 Post by themanintheseersuckersuit » Thu May 15, 2008 9:58 am

silvercamaro wrote:The local news last night had a story about area gas stations that have been selling gasoline blended with ethanol without telling consumers they were buying the cheaper mixture. According to several drivers with meticulous records, the ethanol blend reduces mileage by a noticeable amount, although somebody from Conoco (or a Conoco station) claimed that up to 10 percent ethanol shouldn't make a difference.
We have local stations advertising "100% Pure Gasoline"
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Re: Different Type of Pain at the Pump

#7 Post by TheConfessor » Thu May 15, 2008 12:35 pm

silverscreenselect wrote:Convenience store gas stations make very little money on gas sales, instead relying on the high margin food items inside. The more people have to pay for gas, the less there is to toss away on overpriced sodas and candy bars.
If that were entirely true, I don't think most stations would encourage paying at the pump, which makes it unnecessary to come inside.

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Re: Different Type of Pain at the Pump

#8 Post by andrewjackson » Thu May 15, 2008 12:46 pm

TheConfessor wrote:
silverscreenselect wrote:Convenience store gas stations make very little money on gas sales, instead relying on the high margin food items inside. The more people have to pay for gas, the less there is to toss away on overpriced sodas and candy bars.
If that were entirely true, I don't think most stations would encourage paying at the pump, which makes it unnecessary to come inside.
I'm pretty sure it is true. I have friends that run gas stations. They were opposed to pay at the pump for a while but they felt like they had to do it for a couple of reasons. Some people will drive by if they don't see the pay at the pump option which means you don't even get the chance to get them out of their car at all.

The other thing that really swayed them was the belief that people would buy stuff inside if there was less of a line at the register. Getting the people who were paying for gas out of the line freed it up to sell the other stuff.
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Re: Different Type of Pain at the Pump

#9 Post by silverscreenselect » Thu May 15, 2008 12:55 pm

TheConfessor wrote:
silverscreenselect wrote:Convenience store gas stations make very little money on gas sales, instead relying on the high margin food items inside. The more people have to pay for gas, the less there is to toss away on overpriced sodas and candy bars.
If that were entirely true, I don't think most stations would encourage paying at the pump, which makes it unnecessary to come inside.
I have seen a number of articles like this in recent weeks. Profit margins on gas are in the 1-5% range (and credit card charges run 2-3% for pay-at-the-pump). Profits on food items can run 20-30%

http://tinyurl.com/64tcps

They are facing a real dilemma because if they charge too much for gas, they won't even get people into the store because they see the higher price on the sign.

One article I read said that people were actually still buying some of the already prepared food items like pizza slices and "deli" sandwiches because they could get them for $1-2 and feel good as they drove home.

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Re: Different Type of Pain at the Pump

#10 Post by Bob Juch » Thu May 15, 2008 1:04 pm

silverscreenselect wrote:
TheConfessor wrote:
silverscreenselect wrote:Convenience store gas stations make very little money on gas sales, instead relying on the high margin food items inside. The more people have to pay for gas, the less there is to toss away on overpriced sodas and candy bars.
If that were entirely true, I don't think most stations would encourage paying at the pump, which makes it unnecessary to come inside.
I have seen a number of articles like this in recent weeks. Profit margins on gas are in the 1-5% range (and credit card charges run 2-3% for pay-at-the-pump). Profits on food items can run 20-30%

http://tinyurl.com/64tcps

They are facing a real dilemma because if they charge too much for gas, they won't even get people into the store because they see the higher price on the sign.

One article I read said that people were actually still buying some of the already prepared food items like pizza slices and "deli" sandwiches because they could get them for $1-2 and feel good as they drove home.
While I was getting gas Tuesday night at the station that has the cheapest prices I've seen (and it's an Exxon!), I saw far more cars drive up to the store to buy junk inside than pulled up to the pumps.
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#11 Post by Ritterskoop » Thu May 15, 2008 1:06 pm

The owner of the convenience store/gas station across the street told me this several years ago, when customers began demanding pay-at-the-pump. She said if they don't come inside, they won't buy sodas and gum, which is where she makes her living, not on gas, on which she gets a few pennies a gallon.
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#12 Post by Bob Juch » Thu May 15, 2008 1:21 pm

Ritterskoop wrote:The owner of the convenience store/gas station across the street told me this several years ago, when customers began demanding pay-at-the-pump. She said if they don't come inside, they won't buy sodas and gum, which is where she makes her living, not on gas, on which she gets a few pennies a gallon.
Every gas station in New Jersey is pay-at-the-pump because they don't trust us to pump our own gas.
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#13 Post by Jeemie » Thu May 15, 2008 1:34 pm

Bob Juch wrote:
Ritterskoop wrote:The owner of the convenience store/gas station across the street told me this several years ago, when customers began demanding pay-at-the-pump. She said if they don't come inside, they won't buy sodas and gum, which is where she makes her living, not on gas, on which she gets a few pennies a gallon.
Every gas station in New Jersey is pay-at-the-pump because they don't trust us to pump our own gas.
Don't look a gift horse in the mouth.

You're paying less per gallon than we are in PA...and someone pumps the gas for you.
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#14 Post by Bob Juch » Thu May 15, 2008 1:42 pm

Jeemie wrote:
Bob Juch wrote:
Ritterskoop wrote:The owner of the convenience store/gas station across the street told me this several years ago, when customers began demanding pay-at-the-pump. She said if they don't come inside, they won't buy sodas and gum, which is where she makes her living, not on gas, on which she gets a few pennies a gallon.
Every gas station in New Jersey is pay-at-the-pump because they don't trust us to pump our own gas.
Don't look a gift horse in the mouth.

You're paying less per gallon than we are in PA...and someone pumps the gas for you.
I'm not complaining. I'm just saying that NJ gas stations seem to be doing well despite that.
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#15 Post by christie1111 » Thu May 15, 2008 1:57 pm

Hawaii switched to liters earlier than a lot due to their gas going over $1 a gallon first and no pumps were being made just for Hawaii.

Maybe KT can tell us if the pumps still read in liters but he may not have driven a rental car.
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#16 Post by tanstaafl2 » Thu May 15, 2008 6:52 pm

christie1111 wrote:Hawaii switched to liters earlier than a lot due to their gas going over $1 a gallon first and no pumps were being made just for Hawaii.

Maybe KT can tell us if the pumps still read in liters but he may not have driven a rental car.
On my last visit to Hawaii last August they did not have the cost in liters, at least at the stations I went to.
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#17 Post by sunflower » Thu May 15, 2008 7:05 pm

Ritterskoop wrote:The owner of the convenience store/gas station across the street told me this several years ago, when customers began demanding pay-at-the-pump. She said if they don't come inside, they won't buy sodas and gum, which is where she makes her living, not on gas, on which she gets a few pennies a gallon.
Must be why the gas pumps always seem to be conveniently out of paper, so that you have to go inside to get receipts!

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#18 Post by AlphaDummy » Thu May 15, 2008 7:18 pm

themanintheseersuckersuit wrote:
We have local stations advertising "100% Pure Gasoline"
Around here you will occasionally see signs that say "Our gas has no alcohol".

Which, of course, prompted one local liquor store to post a sign that said "Our alcohol has no gas".


And the thing about the gas pumps reminds me of when gas first broke $1/gallon. Of course, all of the gas stations had to take some sort of action - either retrofitting or replacing existing pumps. Anyhow, back then it was not uncommon to see taverns (especially out in the country) which also served essentially the same function as today's c-stores. And a block or two down the road from where I lived there was just such a place. It was pretty much a relic of times gone by - a mom-and-pop tavern that over the years had a suburb grow up around it. Of course, mom-and-pop were not inclined to take any sort of action on their gas pump; they did not sell enough gas anymore to justify the cost.

Apparently there were either not a lot of people who knew about this, or those who knew kept it to themselves...but for some time the cheapest place to get gas in our neck of the woods was down at Les and Reggie's Tavern.

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#19 Post by Snaxx » Thu May 15, 2008 7:26 pm

One such local station had this problem when gas first went above $2.99 a gallon. For a time they sold gas by the half-gallon, like some grocers sell meat by the half-pound.




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#20 Post by mrkelley23 » Thu May 15, 2008 8:11 pm

jacorbett70 wrote:One such local station had this problem when gas first went above $2.99 a gallon. For a time they sold gas by the half-gallon, like some grocers sell meat by the half-pound.




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#21 Post by silverscreenselect » Fri May 16, 2008 3:27 am

I remember the TV commercial for some car that got good gas mileage (and I can't even remember what car it was) in which the woman pulls into the gas station and asks for a dollar of gas, and everyone laughs at her and the attendant asks her kind of smarmily, "Are you sure you want one dollars worth lady?"

And the woman says, "No, on second thought, I'll just take one gallon."

Sigh.

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#22 Post by MarleysGh0st » Fri May 16, 2008 6:23 am

mrkelley23 wrote: I miss taurus and robwilson and Mscheesecake.

I know rob still pokes his head in occasionally, under another handle, but still.
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Re: Different Type of Pain at the Pump

#23 Post by mntetn » Fri May 16, 2008 7:19 am

silverscreenselect wrote:Apparently, older mechanical gas pumps aren't calibrated for gas costing more than 3.99 a gallon, and these stations are often the ones least able to afford either new digital pumps or the mechanical fixes.
Jeemie wrote:I remember during the oil shocks of the 1970s, there were signs at the gas pumps that helped overcome these limits. The signs read "Amount shown is half your cost" (that helped fulfill the legal requirements to accurately display the price).

Anyone else remember those signs?
I'm surprised no one has thought about "tenth pricing". For example, you'd set the pump at 40.9 and if the customer bought 10 gallons you'd charge 40.90, instead of 4.09. It's easier for many people to move a decimal point than to multiply something by 2. Plus, you wouldn't have to change out any hardware, and the gears won't wear out as fast. You could just take the glass off the front of the pump and hand-paint a new decimal point.

That solution would tide you over till gas gets over 40.00 ... a couple of years at least!

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Re: Different Type of Pain at the Pump

#24 Post by Jeemie » Fri May 16, 2008 7:42 am

mntetn wrote:That solution would tide you over till gas gets over 40.00 ... a couple of years at least!
Then you just go to "hundredths" pricing!

Of course, by that time, there'd be few people left who could actually BUY gas.
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