This is a recently received email. Since I did not have anyone to reply to, I thought maybe everyone would like to know.
Dear Mr/Ms “John Doe”,
Thank you for your email. I have a few things that I would like to point out that will clear the air a little. The last time I received gasoline was January 20th, 2010. This means that I have been carrying my inventory for the past 11 days. Most gas stations get fueled every day if not every other day. So my price on February 1st, 2010 reflected the purchase price of January 20th. If you follow the markets, you’d see gas prices change hourly.
To which your answer will be that if “If you lowered your price you would sell more gas!” Well, you’re partially right. I will actually get gas every 7 days if I lower my price 5 cents. Which will not make me competitive with the Sunoco station you refer to in your email. There is also a much larger problem. I don’t control or maintain higher than average gas prices because I like to, or because I’m trying to rip off the people of “sunnyside”. The reality is that I have to buy gas sometimes for the price Sunoco is SELLING his gas.
So if I’m buying gas at $2.42 a gallon and Sunoco is selling it at $2.42 a gallon, what should I do? I should complain and fight Cumberland Farms to lower my gas prices!! I have, and so did my father for 18 years before me. I’ve even gone to the point where I had all of my corporate accounts write letters to Cumberland Farms stating that they would no longer service or fuel their cars here because of exuberant gas prices. As you can see, Cumberland Farms doesn’t care much for what I have to say, or its customers for that matter.
As for the matter of my actual pricing we should review a few things as well. I do employ two people to dispense gasoline to those who choose to purchase it. Employees don’t work for free. Other than employees and the foreseeable expenses such as rent, electricity, and maintenance… I have what’s called credit card fees. Anyone that comes here to purchase gasoline with a credit card is costing me more money. As a matter of fact I break even at $20 per credit card transaction. So if you get less than $20 of gasoline and purchase it with a credit card, I’ve just paid you to take my gas.
If you don’t believe me, the Star Ledger reported on it a few weeks ago.
I know I know. I should just do cash and credit card pricing like everyone else!! I would love to, however since Cumberland Farms will not upgrade my equipment, I can’t do cash and credit pricing. As a matter of fact, Cumberland Farms suggested that my employees use a calculator and just account for the price difference at the pump with each individual customer. They would need a police officer at this station every day if I did that. Thank you for the wonderful suggestion Cumberland Farms.
Just so we are clear, I received gasoline yesterday (February 1st, 2010). So when you drive by and see that my price is lower, it’s not related to your complaint. It’s purely a matter of coincidence.
Resources For Fuel Pricing:
http://www.fuelgaugereport.com/
Sunoco's Prices @ 7am on February 2nd, 2010
My Prices @ 7am on February 2nd, 2010
If you take careful note, my price is $2.639 for all my customers, while his price is $2.449 for cash and $2.649 for credit cards. This was prior to me lowering my prices according to my most recent delivery yesterday.
