Anybody hear about the Diesel fuel shortage coming? [LOCKED AND WARNINGS GIVEN DUE TO POLITICS]

[Gren71]

Glad to see the thread wasn’t locked.

hopefully we can keep it going since it’s turned into an interesting thread to lurk in.

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[Wheelin98TJ]

Wow, 30,000 stations. That's a pretty good sample size.
And that matches what I learned from my times in the headquarters of Casey's.
Sure it varies, there are times it's more, but there are times it's less as well. You will never see any station selling fuel only unless it's attached to another business. It's not like the old days - but even then beer and cigarettes - and an attached shop - had something to do with their survival.
The costs associated with selling fuel have got to be crazy.

There is a key detail in that article that can sway the profit margin a lot and it’s allocated costs to the cost of sales. Labor, utilities, insurance, and credit card processing fees they mention.

For purposes of this article, labor is likely being allocated based on sales. But we need details to be able to say this for sure.

Fuel sales are the majority of income derived in the specific case of the companies I work for. We are fuel chain in the top 100 chains for size in the US so it’s a fairly good sample and I don’t think it’s anything extraordinary. If you allocate labor based on sales, fuel is going to get the biggest allocation.

Someone else pointed out most fuel sales are outside at the pump. Which is true. So how much labor does it really cost to make those sales? Is an allocation based on sales a fair allocation or should it be based on something else?

Insurance is cheap in the grand scheme of things. Not even sure why the article mentioned this.

Bank fees and credit card processing fees are substantial. That’s a worthwhile mention.

For our sites, fuel is what is keeping them operable and profitable. We don’t even mess with a site without fuel anymore.

 

[Wheelin98TJ]

Sorry, still gonna throw a flag on that play... I have found ZERO evidence to support more than .10 gal actual profit ...so if your stations are making .50 gal, then either they are actually gouging, have zero competition, or someone is cooking the books to get to that number (e.g. leaving out the costs associated with delivering that gal into the end user tank)
But I welcome you to provide a source. I've dealt with different fuel stations friends have owned for 40 years

https://fortune.com/2022/08/09/ener...-fuel-retailers-high-gas-prices-alex-kinnier/

Below is our YTD income statement through September.

Margin dollars on fuel is $17.5m. Gallons sold is in the top line summary, it is 40.8m. Cents per gallon = 42.87, margin on fuel is 10.44%.

 

[fourfa]

Cool P&L thread, deffo why I come to this forum

 

[Gunrunner72]

Below is our YTD income statement through September.

Margin dollars on fuel is $17.5m. Gallons sold is in the top line summary, it is 40.8m. Cents per gallon = 42.87, margin on fuel is 10.44%.

Gotta love that ATM income! I always said I wish everything in my store made the money that little 2 square foot of space made. Until people have actually been in the C-store/gas station game, it's very hard to understand how volume driven everything has become. Cigarette/tobacco companies, soft drink companies, and even the major candy companies all want to dictate YOUR margins to please THEIR shareholders. Used to drive me crazy when random knuckleheads would come through the door and put their intelligence on display and comment about a business/industry that they have never been involved in other than what they're hearing on CNN.

 

[rharr]

@Teqsand
Money where your mouth is, he meet your challenge.

Below is our YTD income statement through September.

Margin dollars on fuel is $17.5m. Gallons sold is in the top line summary, it is 40.8m. Cents per gallon = 42.87, margin on fuel is 10.44%.

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