Flying J's RV discount program

"Not sure about other states, but here in Oklahoma there is a state law that REQUIRES all fuel retailers to sell at a minimum of 6 cents above what they pay for the fuel."

Which means they CAN charge more than six cents -- but assuming six cents ... and probably an average of 20 gal each time ... and say 12 pumps ( I drove around town and find an average 12 pumps on the small stations) So, lets say it takes 5 minutes to fill a tank and half the pumps are running half the time -- seems like that when I fill up anyway -- most of the pumps are in use, and often a short waiting group during the busiest times.

So if we go 5 minutes, that's 12 tanks an hour, times 24 hours times 12 pumps -- 20 gal x $.06 x 12 p/hr x 12 pumps x 24 hrs = $4147 a day -- then if you divide that in half, because all pumps don't run all the time, but at least half are busy most of the time, then you end up with $2073 a day, so that's $62,190 a month ... and most of the time you pay at the pump, so no attendent.

But, someone must be there, so say minimum wage cashier at $2000 a month x 3 shifts = $6000 plus benefits (even if you double it, $6000 = $12,000 -- that's $50,000 a month to pay rent and utilites and insurance ... and that's a small station ... there are three stations near my home that have 36, 24 and 32 pumps ... and they are busy all the time right off the state highway ... 24 hours a day -- less at night, but still busy.

Plus, they have a mini-mart attached. So, the attendents pay, rent, and overhead probably comes out of the store profits ... so, that means the $50,000 a month just sits there in my bank account making me smile -- even if I'm off by half, that $25,000 a month in my bank account makes me smile just as wide. And that's if I charge the MINIMUM $.06 ....

Lambart,
Where are you traveling and what do you use to get .06cent/gal. at Flying J? I need to know. I can't even get the .01cent.
Bill

Lambart,
Where are you traveling and what do you use to get .06cent/gal. at Flying J? I need to know. I can't even get the .01cent.
Bill

The price posted on the sign at Flying J for diesel is for the truckers cost. If you are not a trucker, with an ICC number, then you will pay 5 cents a gallon more. The price on the pump at the truck islands is 5 cents higher than what is posted on the sign out front for diesel. When you enter your ICC number the cost is decreased by 5 cents per gallon. When we use our Flying J RV Cards we also get the reduced amount at the truckers price. Now, to get the extra 1 cent RV discount you must first have spent at least $10 on non-fuel items in one of the Flying J stores during the month. If you've spent more than $50 during the month you can get a 2 cent discount with your RV Card. Your non-fuel spending is recorded in the Flying J computer and is cumulative for the month.

The price posted on the sign at Flying J for diesel is for the truckers cost. If you are not a trucker, with an ICC number, then you will pay 5 cents a gallon more. The price on the pump at the truck islands is 5 cents higher than what is posted on the sign out front for diesel. When you enter your ICC number the cost is decreased by 5 cents per gallon. When we use our Flying J RV Cards we also get the reduced amount at the truckers price.

So, lets see if I understand this. The price posted on the sign is $3.95/gal. If I go to the truck island, the price on the pump is .05 cents higher but if I use the J card I get that .05cents back. Is the price on the pump at the RV island the same as the one on the truck island or is it the price on the sign? If it is the price on the sign then I don't see where we get a discount by using the truck island. That would make it the same as the RV island.

Monkey if that were true than how come gas stations fold. Because of the high gas price last thursday a news report here in Utah said that half the gas stations in Salt Lake City were closing their doors. Reason? They cannot afford to pay for the fuel. Many years ago I owned an American Oil gas station in Missoula, Montana. One of three stations in the town then. And missoula was not small by any means but anyway I had six pumps and only averaged 100 cars a day. I made more on oil changes, repairs, and tires than I made on gas. Figure it this way back than I paid 10 cents for a pop but I made 45 cents per can. Today in a bar for example they pay 10 cents per glass of pop and they charge a dollar. You do the math. Its the same or other items in the store. If I sell friut pies for 1.00 and I paid 25 cents for it tell me that is not a heck of a lot more than 6 cents a gal. It all adds up. And you pay for the fuel when you get it not after you have sold it. And insurance and utilities on a business are a heck of a lot more than in a home. I know a gas station store that pays 1000 dollars a day in electricity alone thats 30,000 a month now add 12,000 as you put if for employees, and another 3000 dollars a month in taxes and insurance, thats 45000 a month there alone and now that dont include cleaning supplies, water, gas, and other items. If someone uses a credit card to buy gas the gas station pays up to 5% of the cost of the sale for the credit card to be processed. So you buy 100 dollars in gas and pay with a credit card. Thats five dollars the station pays so you can use your card. So the stations makes 1.25 on the gas sale of 100 dollars but pays 5 dollars leaves him a minus-3.25 in the hole. You do the math.

I've been a 'small business owner" all my working life (after my military days) Don't know why small stations close -- probably the competition from larger stations that do undercut them ... was not trying to show that someone can make a million bucks in a gas station, but only that the numbers show that a good businessman can make money selling gas ... and that I get a little tired of gas station owners raising the price of gas .25 a gallon from one day to the next for gas already in the underground tanks that's already paid for ... and telling me he isn't making money --and that stations tell everyone they can't making money. You can make money running a gas station. That was my only point -- I can't help if if someone goes out of business, that's usually other factors than the profit value of per gallon ...

Once remember when we got real service -- that is, check the oil -- windows, etc. Now, the price is ten times that, and we have to pump ourselves and check our own oil -- and when I try to talk to an attendent, we can't communicate because English is his second language, and he/she doesn't speak it well.

So, a small gas station (like any other small business) needs hands-on to make it work ... and so, telling me the price of gas and the profit margin is the reason does not hold water with me ... that's all. The money is there to be made -- people do not stop buying gas -- as we can see. People don't stop buying gas, and have not changed gas habits very much -- still go to the store and the PO and camping -- the high price of gas just makes the cost of it more, not the margin ... according to that other post, is gas mark-up is .06, then it should make no difference whether gas sells at $3.00 or $6.00 ... the mark-up is still .06 ... so the margin is the same.

So the profit on a gallon of gas is the same -- and good service will get and keep your customers ... at least as a general statement ...