My local Chevron now features a video display on top of the pump that tells you they only profit between $.03-$.12/gallon on the gas you’re buying.
Yup, they are making a plea for you not to complain about their prices and bring your car back because the gas station only makes $.03/gallon. Oh, and please pay cash because the credit card fees cut into their profit. Hahahahaha.
a) marketing department should have made the video to say it COSTS the hard working gas station folks $3.97/gallon to serve you.
b) Gas Stations make a lot of money, but not on gas. Really, i didn’t know. 😉
They obviously understand behavior and buying affinities, so they should use that knowledge to better effect. Undercut pricing of supermarkets on milk, diapers and eggs and market the fact, “We Understand the Economic Crunch.” People will still buy the 95% margin coffee and energy drinks if they can get the gas, milk, eggs, and diapers cheaper.
It’s unlikely consumers will feel much pity for gas company that the current gas price pump ads attempt to generate. They will appreciate cheaper prices on necessities and maybe even attribute empathy to the gas stations and oil companies.
Oh, and if cash makes them more money, they should put ATMs at the pump so people have cash on hand more often.