New Mexico residents benefit from gasoline price war

[SirFozzie]

Something about cutting off your nose to spite your face comes to mind for these stations..


Gas War: Station Sets Price at 49 Cents

The Associated Press
Thursday, July 27, 2006; 8:54 PM

CLOVIS, N.M. -- A price war between two Clovis gasoline stations reached a fever pitch when one store dropped its fuel price to 49 cents per gallon.

The price war between Town and Country and Allsup's convenience stores snarled traffic in the eastern New Mexico town as about 200 vehicles lined up Wednesday to buy cheap gas, blocking the stores and a local fire station, Clovis Fire Marshal Allan Silvers said.

Silvers said he put an end to the battle because the traffic was a public safety hazard. He asked the stores "if there was anything they could do reasonably to remedy the situation."

Allsup's raised its fuel price from 49 cents to $2.83 a gallon and Town and Country raised its 99 cents per gallon price tag to $2.86, Silvers said.

"They raised prices on their own accord to dispel the traffic and after that was done, as you can imagine, people lost interest," Silvers said.

On Tuesday, the stores were selling below wholesale costs.

Dan McCurdy, a spokesman for Town and Country Food Stores, told The Clovis News-Journal on Tuesday that the competition has been going for several weeks. He said the Allsup's store has dropped its price per gallon to remain an average of 3 cents lower than Town and Country.

"In very simple terms, we're staying competitive with our competitors. We're not going to lose our customers because they're offering a lower price," McCurdy said

[molson]

I'm surprised this kind of thing doesn't happen more often. If a gas station publicly announces even a moderate "sale" - their business will be flooded with customers, which presumably would inflate in-store business.

[KevinNU7]

Sometimes I wonder if two gas stations aren't working together to create massive lines that force people into the stores to kill time while they wait

[SirFozzie]

Except the lines are so long, they're 200 deep and back down the road a couple miles.

[albionmoonlight]

Originally Posted by molson

I'm surprised this kind of thing doesn't happen more often. If a gas station publicly announces even a moderate "sale" - their business will be flooded with customers, which presumably would inflate in-store business.

And from what I hear, the profit isn't on the gas anyway. It's, as you would expect, the $2.00 cokes and $3.00 hotdogs.

Of course, with pay-at-the pump being pretty much mandatory these days, I wonder how much getting cars into your station really translates into selling them overpriced goods inside.

[Chubby]

Originally Posted by albionmoonlight

And from what I hear, the profit isn't on the gas anyway. It's, as you would expect, the $2.00 cokes and $3.00 hotdogs.

Of course, with pay-at-the pump being pretty much mandatory these days, I wonder how much getting cars into your station really translates into selling them overpriced goods inside.

Damn, where do you buy gas?

You don't need $2 cokes and $3 hot dogs to turn a nice profit on fast food. Can't get into specifics (since, well, I DO work in a c-store) but fast food items are the best money makers in a c-store.

We don't have madatory pay at the pump either. it's balanced by a killer survaillaince system with people whose sole jobs is to track down driveoffs