Cheap Petrol, Thank God

L-M

Just filled the Golf today for 44euro. Happy days:D
I can drive in lower gears now more, the costs will level out:P

cyborg

Happy days indeed, where's the cheapest petrol in Limerick now?

L-M

Got mine at the Esso in Singland 99.9. But apparently on the Dublin road, just up a bit from Cleary's Carpetland it;s cheap. I'm sure the petrol (from concentrate:P) they sell in AppleGreen is cheaper too:D

Bandara

bad news gents.

Looks like both UNL and Derv is going up by 2 cents wholesale at the weekend.

Don't shoot the messenger

Berty

Maxol and Esso were 99.9 cent by Groody. The forecourt was so full I just kept going. I have a maxol card you see.

I drove out to Dalys cross who was 102.9. I live out that way so its not as though Im going to drive that far to avoid a queue.

I know the owner so asked him why he would not drop his prices. He said that many reports have been done that if you are the cheapest that people will just pay and leave without using the petrol/diesel as a loss leader to get them into the store to buy other items.

They just pay and leave. Oxymoron more than anything.

He is also just a tight git anyway.

Bear in mind that Apple Green has terms and conditions in order to get the cheapest prices.

Also, I was on the quays in Dublin earlier today and that notorious site with high prices, now applegreen(was Satoil) is now 99.9 cent and 102.9 for Diesel. Fair Play.

L1011

Thats not an Applegreen, its a far older green-tinged Irish chain (TOP). Been back to cheap since a few weeks after it lost its Statoil franchise.

Bandara

quirke_folder wrote: »

I know the owner so asked him why he would not drop his prices. He said that many reports have been done that if you are the cheapest that people will just pay and leave without using the petrol/diesel as a loss leader to get them into the store to buy other items.

Hi Quirke

IMO he's right about that, I am very strongly thinking of going back to just selling fuel at the bog standard price and squeezing a few extra cents out of it rather than keeping it competitive and making sod all.

I've sold fuel at one of my sites for the rock bottom pricing for the past few months, my fuel turnover has increased alomost four times what it was, yet my shop turnover has DROPPED about 12%. The long and the short of it is that I'm taking huge amounts of money a day, but making less than I was before, and the maintance of the equipment is costing a lot more as its being hammered by the huge increase in volume. So why on earth should I do it ?

There is absolutely no loyalty from consumers, so should there be loyalty towards consumers??

L-M

Hammertime wrote: »

Hi Quirke

IMO he's right about that, I am very strongly thinking of going back to just selling fuel at the bog standard price and squeezing a few extra cents out of it rather than keeping it competitive and making sod all.

I've sold fuel at one of my sites for the rock bottom pricing for the past few months, my fuel turnover has increased alomost four times what it was, yet my shop turnover has DROPPED about 12%. The long and the short of it is that I'm taking huge amounts of money a day, but making less than I was before, and the maintance of the equipment is costing a lot more as its being hammered by the huge increase in volume. So why on earth should I do it ?

There is absolutely no loyalty from consumers, so should there be loyalty towards consumers??

What i've noticed from the shop inside where i work is. People come in to buy petrol, some use the atm, then have to walk by the drinks and deli before the counter. Most of them would stop and sniff, tempt themselves and buy something. Although if there are huge crowds, people just want in and out, incase they are blocking the next person getting some.

Anan1

Limerick-man wrote: »

Although if there are huge crowds, people just want in and out, incase they are blocking the next person getting some.

And I suppose the cheaper the petrol the huger the crowds.

Bandara

Limerick-man wrote: »

What i've noticed from the shop inside where i work is. People come in to buy petrol, some use the atm, then have to walk by the drinks and deli before the counter. Most of them would stop and sniff, tempt themselves and buy something. Although if there are huge crowds, people just want in and out, incase they are blocking the next person getting some.

spot on, and the very busy forecourt means parents don't let their kids out of the car for safety reasons. Which in turn means the parent isn't letting the kids pick some sweets out, and the parent also isn;'t going to pick anything because they are worried leaving the kids in the car on their own.

Another one is when your very cheap most people fill up completely and then pay by creditcard as they don't have enough cash on them, this delays the queues at the tills and people get impatient and won't leave the queue to get a drink etc for fear of losing their place.

L1011

Hammertime wrote: »

Another one is when your very cheap most people fill up completely and then pay by creditcard as they don't have enough cash on them, this delays the queues at the tills and people get impatient and won't leave the queue to get a drink etc for fear of losing their place.

This reminds me of something I've wondered - does the merchant fee % on credit cards make a noticeable impact over the general costs of cash handling? I always feel like a prick buying something low-margin on a credit card.

L-M

Hammertime wrote: »

Another one is when your very cheap most people fill up completely and then pay by creditcard as they don't have enough cash on them, this delays the queues at the tills and people get impatient and won't leave the queue to get a drink etc for fear of losing their place.

But for something that is such a competitive market, and we all know people will travel to save a few cent, and which such minimal profits as is, is it not wise to have some sort of flow of customers coming it. 3000 litres at 2 cent profit is the same 1500 at 4c profit kinda thing.

I think it's a good idea to have small things around the counter as well, ie. chewing gum etc. small bars etc. etc. because people tend to impulse buy. So if you combine these, lower prices = higher footfall = more money?

Vain

Limerick-man wrote: »

Just filled the Golf today for 44euro. Happy days:D
I can drive in lower gears now more, the costs will level out:P

From a empty tank? filled my the last day from a quarter tank and it cost 40 euro for 99,9 aswell

L-M

Vain wrote: »

From a empty tank? filled my the last day from a quarter tank and it cost 40 euro for 99,9 aswell

Very close to the orange light coming on.

Bandara

MYOB wrote: »

This reminds me of something I've wondered - does the merchant fee % on credit cards make a noticeable impact over the general costs of cash handling? I always feel like a prick buying something low-margin on a credit card.

its a big problem when people start buying things like cigs, lotto, phone credit on credit cards, especially for franchisees who are paying anything from 5-8% of their turnover on cigarettes where they are making about 9% overall, and then they get hit for a credit card fee of 1.3% which makes the sale essentially a loss.

I pay over 60k a year in CC fees on my busier site, its a killer.

L1011

Never thought smokes would be that low margin, then again I don't smoke. All I usually buy when I'm getting fuel would be the Herald and maybe a bottle of BPM (if its even stocked any more) so I don't think any stations are getting rich off that...

fuel is on a personal fuel card if I can find a Topaz, never worked out how stations which are more expensive than its quoted price make any money at all.

L-M

MYOB wrote: »

Never thought smokes would be that low margin, then again I don't smoke. All I usually buy when I'm getting fuel would be the Herald and maybe a bottle of BPM (if its even stocked any more) so I don't think any stations are getting rich off that...

Ah ya but if everyone buys a Herald and Bpm, then we're getting some where. I though cigs were 8-9% margin?

quirke_folder

quirke_folder wrote: »

He said that many reports have been done that if you are the cheapest that people will just pay and leave without using the petrol/diesel as a loss leader to get them into the store to buy other items.

.

My local station is one of the cheapest in co. Galway and they dont have a shop they just sell petrol nothing else! Funny isn't it! :rolleyes:

the_syco

Got a 1.4L Honda Civic there last Saturday. Orange light was on coming out of the car sales place. There was a garage nearby... selling at €1.18, so we went on. Luckily got a garage a short time later. The odd thing was that the petrol needle went up slightly, before nose-diving. Was running on fumes for a while. Got to a garage, and got (my first) half a tank for €20. Nice.

IMO, a selection of sweets will get them to buy something if they're buying anything. When I bout the €20 of fuel, I went in with a €20, gave it to the till, and walked out. It's those people who got maybe 10 cents over the €20, and will be getting change anyway... may as well get... sweets, paper if it's next to the counter. A lot of garages that I've seen have this layout, though.

Bandara

Limerick-man wrote: »

Ah ya but if everyone buys a Herald and Bpm, then we're getting some where. I though cigs were 8-9% margin?

cigs are 9% margin thats what I said in my post I think.

The herald isn't worth a sh1te either, 25% margin, the BPM is a splendiferious 43% margin however

Bandara

Dennis Shallow Jock wrote: »

My local station is one of the cheapest in co. Galway and they dont have a shop they just sell petrol nothing else! Funny isn't it! :rolleyes:

not really, it makes perfect sense, they have zero overheads except for having someone stand there and take the money and a few grand a year maintenance.

They have to sell it very cheap otherwise why on earth would anyone ever stop there.

L-M

Hammertime wrote: »

cigs are 9% margin thats what I said in my post I think.

The herald isn't worth a sh1te either, 25% margin, the BPM is a splendiferious 43% margin however

But still, if people buy them because they bought petrol. Well then, happy days. Sorry just say you post, 9%...

Yakult

Hammertime wrote: »

bad news gents.

Looks like both UNL and Derv is going up by 2 cents wholesale at the weekend.

Don't shoot the messenger

*shoots*



Might aswell fill while its cheaper.

Bandara

Limerick-man wrote: »

But still, if people buy them because they bought petrol. Well then, happy days. Sorry just say you post, 9%...

yes I know what you mean but your runnuing costs are at least 18% and your paying a franchise fee of 6%+ and then a CC fee of 1.3%

Kind of eats well past the 25% margin on the Herald pretty quick !

L-M

Hammertime wrote: »

yes I know what you mean but your runnuing costs are at least 18% and your paying a franchise fee of 6%+ and then a CC fee of 1.3%

Kind of eats well past the 25% margin on the Herald pretty quick !

Lol, fair enough!

mickdw

Hammertime wrote: »

I am very strongly thinking of going back to just selling fuel at the bog standard price and squeezing a few extra cents out of it rather than keeping it competitive and making sod all.

I've sold fuel at one of my sites for the rock bottom pricing for the past few months, my fuel turnover has increased alomost four times what it was, yet my shop turnover has DROPPED about 12%. The long and the short of it is that I'm taking huge amounts of money a day, but making less than I was before, and the maintance of the equipment is costing a lot more as its being hammered by the huge increase in volume. So why on earth should I do it ?

There is absolutely no loyalty from consumers, so should there be loyalty towards consumers??

Hammertime, you blinded us all with your stunning expertese and knowledge of the fuel retailing game in an old thread here re variable price petrol.
http://www.boards.ie/vbulletin/showthread.php?t=2055408164
You seemed to be certain you could continually beat anyone on price and were happy to sell at a loss due to the huge benefits from this in your shop.
there were lots of LOL s etc from you in relation to how could simply sink any competitor with cunning & capacity and that you were minting it in your shop to a degree that the fuel price/profit/loss hardly came into the equation.
Are you now saying that maybe you are not so cunning after all?

sdanseo

quirke_folder wrote: »

Bear in mind that Apple Green has terms and conditions in order to get the cheapest prices.

Also, I was on the quays in Dublin earlier today and that notorious site with high prices, now applegreen(was Satoil) is now 99.9 cent and 102.9 for Diesel. Fair Play.

What sort of terms and conditions?

MYOB wrote: »

Thats not an Applegreen, its a far older green-tinged Irish chain (TOP). Been back to cheap since a few weeks after it lost its Statoil franchise.

Am I right in saying Applgreen are doing a topaz here, except with TOP? Or are there any other stations being refranchised?

Am I right

L-M

sdonn_1 wrote: »

What sort of terms and conditions?



Am I right in saying Applgreen are doing a topaz here, except with TOP? Or are there any other stations being refranchised?

Am I right

Terms and conditions i think are spend a certain amount in the shop etc. etc.

As far as i know Topaz took over Shell and Maxol.

sdanseo

Limerick-man wrote: »

Terms and conditions i think are spend a certain amount in the shop etc. etc.

As far as i know Topaz took over Shell and Maxol.

Shell and Statoil. What I mean is, "is it safe to presume Applegreen will be acquiring all the TOP franchises and therefore that the same deals etc will be available anywhere there's currently a TOP".

DonJose

Hammertime wrote: »

IMO he's right about that, I am very strongly thinking of going back to just selling fuel at the bog standard price and squeezing a few extra cents out of it rather than keeping it competitive and making sod all.

At the end of the day a petrol station is a petrol station. I have stopped buying anything, especially alcohol from a petrol station. I shop up north for all my groceries, alcohol, clothing and furniture. If we need milk, bread or any other essentials we shop in Asda or Lidl. The days of being ripped off in the Republic are behind me.

mickdw

DonJose wrote: »

At the end of the day a petrol station is a petrol station. I have stopped buying anything, especially alcohol from a petrol station. I shop up north for all my groceries, alcohol, clothing and furniture. If we need milk, bread or any other essentials we shop in Asda or Lidl. The days of being ripped off in the Republic are behind me.

You are right but sometimes its just handy to pick something up and yes I know I am getting ripped off