Well, here it is…Unleaded Regular under 2.00/gal in most of the country, diesel back under 3.00/gal, the rapid drop in prices as unexpected as the rapid run up to the 4.00/gal.+ range over the spring and summer. As I write this on the afternoon of December 1, 2008, I see Crude oil under $50.00/bbl, and NYMEX RBOB under $1.12/gal. What year is it, anyway? The last time the benchmark WTI crude was priced at this level was in the third quarter of 2004. Ahhh, the good old days!
Most of the operational and management employees at firms we’ve either operated directly or consulted for know the three words we’ve driven to success in the past…”Sell More Gasoline!” (Fuel).
It’s hard to be pumping good gallonage and not do well on inside sales, you have to do a notably bad job of convenience retailing in order to not have the corollary of “Increased Gallons pumped = increased inside sales” not ring true.
As we have designed and operated units and chains over the years, this has been our guiding principle:”To use the strength of the constant traffic flow that a petroleum outlet provides to drive the enhanced revenue flow and operating margins that a Convenience store (and/or fast food outlet) outlet achieves.”
This simple philosophy is the reason that gasoline retailers have sold additional items since before Standard Oil was broken up. While we’re not advocating any “price wars” breaking out on hotly competitive corners, we certainly believe that fuel pricing can again become a major driver behind store merchandise and foodservice volumes and subsequently, increased location profitability.
Condevco has an affordable solution that services your individual sites, and that allows for fuel pricing that drives traffic to your site, while still maintaining competitive and better margins on fuel. Contact us for details.
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