Is this wrong to do? I own a gas station?

Question

Hey there I own a gas station, and lately with the gas prices rising up everywhere I put mine up to $4.93 And people still bought it because im like.. the main gas station in the area, I could put gas at $3.01 currently but im making a huuuge profit here, Is it wrong and should I Bump it down to like... $4.00? Or is it okay to do this and should I raise it higher? I was thinking I could push it to $5.32ish before people stopped buying...

Answer 1

You could probably have people still come, but then you are probably making people hate you forever.  I remember when hurricane katrina hit, a few gouging stations raised their prices to ridiculous levels.  I then said s***w them and I never went there again.  It is like 3 years later and I still wont go to them.  You have to understand that once you lose customers they will likely never come back.  Gas prices will not be high forever, and if you are in a position that you can raise your prices and people really do not have much of a choice, then it is very likely someone else will open up and put you under.

Answer 2

Congratulations to Ben for being the only person to recognize the questioner's lies.  Spot market prices for gasoline are currently about $3.50/gallon, this doesn't include additives, transportation and station markup.  There's no way the questioner can get gasoline for $3.01 unless he's stealing it.

The average station operator makes less than a dime per gallon.  This is well known and well documented.  If you were charging $4.93, you'd have the district attorney in your store demanding proff of your expenses.  You'd either be selling for $3.10/gallon or facing litigation.

Let me ask you something, what's the name of the tank monitoring system you have installed?  How do your delivery drivers know which tank to drop fuel in?  What's the temperature at which you pay for gasoline?  If you own a gasoline station, you'll know the answer to ALL these questions.

Answer 3

I doubt that you are the only gas station in the area.  But let's say that is true.  Barriers to entry in your business are low, so, if you raise your prices, you will be encouraging new entrants.  That is to say, you are setting the stage for a competitor to spring up across the street.

Answer 4

You don't own a gas station.  Your gas must be about 1.5 year old or your not paying the tax's on it?  I hauled fuel for many years and I know what margin of profit is and there is now way you can go from $4.93 to $3.01.

Answer 5

There is no way that you are a gas station owner.

Answer 6

Are you that greedy?

How about a little compassion for the drivers?

I live in an area with no mass transit.  I have to drive everywhere.

Fortunately out gas prices are around $4.00.

Answer 7

yea it is wong bening like the corprate bumping gas prices up so you can make a profrt it would help if you put the gas price at3.50 or 4.00 it would make every one happer

Answer 8

How about somewhere in between, where you make enough profit but also aren't being an _______. I'll let you fill in the blank.

Like $4.50

Answer 9

If you can still run your business successfully and drop prices, even if only for a while, then why not?  You'll earn good will from your customers and you might even gain a few new ones.  If you don't want to drop your prices, then use the extra earnings to improve your gas station - better lighting, newer pumps, that sort of thing.  At least then folks will see that their money is going to more than just your pocket.

People know that you have to run a business, which means you have to cover expenses plus a little extra for emergencies.  What people don't like is when they perceive they're being gouged.  

If I knew that you were making that much profit, I might be annoyed and avoid your gas station.  But, if you made it worth their while to spend the extra money, then maybe it's not so bad.