Question:

How can Raceway afford selling their gas for such a low price?

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I look around while driving in Leeds, AL and I can't help but notice that all the gas stations were selling their gas for $3.64 except for Raceway, which was selling their gas for $3.59. Why is this?

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3 ANSWERS


  1. either they have a lower overhead (they can make up the difference by selling soda and cigarettes.. candy ect) or the fuel they bought was cheaper .. also check the amount of ethanol in the fuel


  2. Most gas stations sell gas for at least $0.10 per gallon profit.  If raceway sells twice as much for $0.05 per gallon profit in the same amount of time the earn just as much money, and high volume dealers often get more favorable prices because the manufactures do business the same way.  They want to make X amount of money in a certain period of time, high volume at lower prices or lower volume a higher prices.  Add in the discount for being a high volume buyer and they probably make more money in the long run.  

  3. It's not that big a difference. Depends on their costs for that period of time.  

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