Bike Racks at Quick Trip

[flyingember]

I was at the Quick Trip at Antioch and Vivion this weekend.

For a business based around the bike I was surprised to see two bike racks along the front of their building.

Not at the side, not way in the back corner but right in front close to the entrance.

For a business based around the car so much it was a very nice sight to see.

[heatherkay]

Gas stations don't really make money on gasoline. That's a loss leader to get you in the store to buy the rolling tube food and gatorade. Quik Trip is looking to get as many people into the store as they can manage, including middle school students and people who can't drive. Smart business.

[aknowledgeableperson]

If loss leader then why have "pay-at-the-pump"? If loss leader then why do some stations increase the number of pumps? The big volume of business (dollars and # of customers) is gas sales and one doesn't have a loss leader with their big money item.

[heatherkay]

Well, I won't even stop at a station if all the pumps are full, and I don't ever go to a station without pay-at-the-pump. If they can't get me into the parking lot, they certainly can't get me into the station.

Here's some more about how it works

http://www.msnbc.msn.com/id/23904590/ns ... -more-gas/

[smh]

If loss leader then why have "pay-at-the-pump"? If loss leader then why do some stations increase the number of pumps? The big volume of business (dollars and # of customers) is gas sales and one doesn't have a loss leader with their big money item.

It is widely understood that gasoline sales do not account for much (if any) profit at gas stations. They want you in the store buying snacks, etc. Pay at the pump is simply a convenience that drivers somehow managed to get stations to offer. Once one company offered it, all the rest followed suit. TBH, I suspect they know that a good number of people will use pay at the pump and then still go in the store for a soda or taquito.

[aknowledgeableperson]

There isn't much profit per gallon but the profit is in the volume of sales. And when you are making a profit on the item then it isn't a "loss leader".

Yes, there is money to be made inside and much like anything else the profit is in volume.

[heatherkay]

OK -- loss leader might be overstating it, but if you read that MSNBC article, some stations actually do lose money on gas sales, especially gas sales with credit cards.

[shinatoo]

I have been riding my bike to Quick Trip since the early 80's (50 highway and Laurel in Raytown and now one in exurban Lee's Summit), they had bike racks back then. I don't think it's anything new for them. Food, smoke, booze and beverage sales are their main business. Just look at 7/11's, many locations don't even sell gas.

[aknowledgeableperson]

From that article:

Jeff Lenard, spokesman for the National Association of Convenience Stores, estimates that gasoline accounts for 70 percent of a typical station's revenues, but only 30 percent of its profits.

Yes, some lose money on a consistent basis and at times all may lose money when there are price swings but overall there is a profit in gas sales. And from what I can remember it is the low volume gas seller that has the harder time making a profit from gas sales.

[SWFan]

If loss leader then why have "pay-at-the-pump"? If loss leader then why do some stations increase the number of pumps? The big volume of business (dollars and # of customers) is gas sales and one doesn't have a loss leader with their big money item.

I used to be the Controller for a small, locally owned C-Store chain (had about 30 stores in MO, KS, & OK). Gas sales are certainly not a loss leader, but they definitely are very slim margins. There is a reason you see almost no gas-only stores. Almost all gas stations are now c-stores. The reason is the slim margins on gas its almost impossible to make a healthy profit on gas sales alone. For anyone to be successful they need to get people inside for the high margin items such as soft drinks and food.

The reason for pay-at-the-pump is due to competition. You don't have it, people will buy their gas elsewhere and thus you lose an opportunity of someone stopping to get gas then suddenly deciding to go inside for something. Trust me, c-store owners hate pay-at-the-pump because it reduces the likelihood of people going into the store, but everyone has it and if you don't you'll lose business.

The reason stores add more pumps is to draw in more people, thus increasing the number of people getting gas that may go into the store for whatever. Also, people will skip gas stations that appear to be all full up at the pumps. Again, its all to draw in more people thus increasing traffic flow into the store.

[mailman641]

Although c-store owners might lose out on some sales from pay at the pump, it can also help them. I'm sure I'm not alone when I say I very rarely go in and buy something when I stop for gas(maybe once or twice a year). If there was no pay at the pump I would have to go in and make the line to the register longer just for gas only. So pay at the pump keeps the line short(and therefore a better shopping experience) for people who are buying other stuff.

[flyingember]

I like pay at the pump. I use a card for it and then can get a drink or something with cash.

since I never know how much gas I'll need. a gallon difference is 2 more days of driving without filling up