What's new
By:
Filters

How hard is inflation going to hit, or has hit?

clodhopper said:
Things that seemed really far away when I lived in new england, now I drive twice that far just to get to a town with shopping. It isnt as far as you like to think.
Click to expand...
Just about everything is an hour one way for me. If it involves more than 15m of driving and I can't take a motorcycle, I'm looking for alternatives. :laughing:
 
Scott Cee aka 2drx4 said:
There's a common misconception that the gasoline retailers make more with higher prices. They generally don't. Retailing gasoline is an operation of very thin margins, as there is huge competition and very limited brand loyalty. The retailer either survives by selling massive quantities with as few staff as possible (card locks and commercial sales), or by encouraging other sales (chips, drinks, tobacco, etc) from an associated convenience store (your typical gas station).

I have access to rack pricing here, and when comparing it to tax adjusted retail pricing, the typical gas station is only marking up between $0.02 and $0.10 a liter, which expressed as a percentage is 1-5% markup. Absolute shit margins given the amount of infrastructure they need to retail.
Click to expand...
I didn’t state they were making a ton of money on the fuel.

Most on here know that they make money on you once inside of the store. Around me they are always full and people are buying sandwiches, coffees, energy drinks and what have you.

Hoping someone decent will come and work hard for $13/hr is where most of us/management that is severely out of touch with reality part ways. Fucking clowns.

Most of the stores I frequent have 1 to 2 cashiers max, and just as many self serve scanners/credit card readers (Maverik is what corporate wants us to use for our work vehicles fill ups).
 
Gtrplyr78 said:
I didn’t state they were making a ton of money on the fuel.

Most on here know that they make money on you once inside of the store. Around me they are always full and people are buying sandwiches, coffees, energy drinks and what have you.

Hoping someone decent will come and work hard for $13/hr is where most of us/management that is severely out of touch with reality part ways. Fucking clowns.

Most of the stores I frequent have 1 to 2 cashiers max, and just as many self serve scanners/credit card readers (Maverik is what corporate wants us to use for our work vehicles fill ups).
Click to expand...
I would bet they are making a fair bit less money on inside sales now with the price of fuel being what it is. Sure cigs will still sell but after you get ass raped at the pumps are you gonna feel like going inside for a bag of chips and a plate of sushi? Probably not.
 
Scott Cee aka 2drx4 said:
There's a common misconception that the gasoline retailers make more with higher prices. They generally don't. Retailing gasoline is an operation of very thin margins, as there is huge competition and very limited brand loyalty. The retailer either survives by selling massive quantities with as few staff as possible (card locks and commercial sales), or by encouraging other sales (chips, drinks, tobacco, etc) from an associated convenience store (your typical gas station).

I have access to rack pricing here, and when comparing it to tax adjusted retail pricing, the typical gas station is only marking up between $0.02 and $0.10 a liter, which expressed as a percentage is 1-5% markup. Absolute shit margins given the amount of infrastructure they need to retail.
Click to expand...
The refinery is the one making
The big money
 
Lawless said:
I would bet they are making a fair bit less money on inside sales now with the price of fuel being what it is. Sure cigs will still sell but after you get ass raped at the pumps are you gonna feel like going inside for a bag of chips and a plate of sushi? Probably not.
Click to expand...
Talking to my dads about it, who had multiple gas station clients for years, no, normally it doesn't work that way. While they will lose some of those other sales from more financially responsible customers who tend to only gas up when their empty and fill their entire tank, lots of people just "put $20 in" or whatever. Increased gasoline prices mean they return more frequently, and they buy those other items largely by habit or based on whatever "2 for 1!!!!" deal is on the signs/windows. They will potentially spend more in the store as their habits are being exploited. Now, if it's the to point their cards are getting declined or they can't rummage enough change together to buy a slurpee, yeah, it's going to affect it. But, keep in mind people also are more likely to impulse buy a Coke or ice cream sandwich when they're down, and especially that pack of cigarettes, even if their finances are absolutely at the breaking point, so eh, I'm going to say the gas station business model is fairly resistant to high gas prices.
 
[486] said:
wait wait wait

wait
huh
Click to expand...
He did the books for gas stations for years. Actually he ran an accounting firm of about 30 people and had clients ranging from composite manufacturers to high end resorts. I trust his historic info on how businesses performed.

Sorry I don't really ever explain my family on here. :laughing:
 
Scott Cee aka 2drx4 said:
Talking to my dads about it, who had multiple gas station clients for years, no, normally it doesn't work that way. While they will lose some of those other sales from more financially responsible customers who tend to only gas up when their empty and fill their entire tank, lots of people just "put $20 in" or whatever. Increased gasoline prices mean they return more frequently, and they buy those other items largely by habit or based on whatever "2 for 1!!!!" deal is on the signs/windows. They will potentially spend more in the store as their habits are being exploited. Now, if it's the to point their cards are getting declined or they can't rummage enough change together to buy a slurpee, yeah, it's going to affect it. But, keep in mind people also are more likely to impulse buy a Coke or ice cream sandwich when they're down, and especially that pack of cigarettes, even if their finances are absolutely at the breaking point, so eh, I'm going to say the gas station business model is fairly resistant to high gas prices.
Click to expand...
I agree

I do environmental testing of the soil and groundwater around the underground storage tanks at gas stations for the state .

It’s really sad to see the people driving some POS car , pull up , go inside and get cigarettes and a handful of lotto scratchers , come back to their car and scratch em all off , go back inside and buy more , etc , for one or two hours straight .

Gas stations must make pretty good profit because there’s so many lawyers of owners

The person that owned the land and building almost always leases it to someone else , who usually leases it to someone else etc ,
Not sure why . Maybe someone who has family that does gas station accounting can answer that question .

I regularly work at one that has a leak, and the business that owns the land , leases the place out , to 2 different companies.
One company has the inside sales and another company has the outside sales .
Very bizarre, but I assume there is some tax dodge in all this sub leasing .

And I don’t know any of the owners that just own ONE gas station.
They all own between 5-12 stations .


Another one I worked at regularly , like every two weeks , for the last six years , has changed owners every 12-18 months like clockwork . Again I’m assuming some kind of tax dodge ?

And a definite trend I’ve noticed is that the gas stations are going in two different directions . They are all either new nice and clean , or they are going downhill fast and it’s a nasty dump owned and run by people who don’t speak English.
They either have nice clean bathrooms , or they’ve put a permanent “out of order “ sign on the bathroom so they don’t have to bother with cleaning and stocking it .

There is no middle class gas station anymore .
They are either super nice and new or it’s a total POS dump with homeless people living out back in tents .

And it’s amusing how they all claim the leak that contaminated the groundwater and the nearby creek couldn’t possibly have come from their place , it had to be the other gas station 3 miles up the road . Even when it’s the state that’s paying for the cleanup , they vehemently deny any responsibility

One owner whose station was leaking into a creek that went directly into the reservoir that supplied three counties with drinking water , was super angry that he was having to pay his $10k deductible before the states insurance kicked in.

I’m explaining to him that he should hand over that check to the state with a smile because we were gonna blow through $10k in the first three days , and Probabaly end up spending somewhere between $400k and a million to De-con the place .
 
Even the local news is having to cover...

The Detroit News

www.detroitnews.com www.detroitnews.com

Highlights:
  • Single family home permits last month 303, previous month 414, same month of previous year 436
  • mortgage rate now 5.78%
  • lumber to build one of the homes would have cost $47,000 pre-pandemic. Now it's up nearly 60% at $75,000.
 
roundhouse said:
Who knows

The state is giving them $1.5 Billion taxpayer dollars

www.11alive.com

Georgia sets $1.5B in aid for electric vehicle maker Rivian

The state of Georgia and local governments will give Rivian Automotive $1.5 billion of incentives to build a 7,500-job, $5 billion electric vehicle plant.
www.11alive.com www.11alive.com
Click to expand...

MuntCuffin said:
1.5 billion free fiat fun bucks.

As fuel to plant and harvest food, and move goods gets to $6 a gallon...

Solving problems we didn't know existed?
Making friends rich?
Saving polar bears.
Click to expand...
That's not how this works. They are not giving Rivian anything, they are merely promising to take less from them during a certain time period to encourage the development in their jurisdiction.
 
DRTDEVL said:
That's not how this works. They are not giving Rivian anything, they are merely promising to take less from them during a certain time period to encourage the development in their jurisdiction.
Click to expand...
Same thing .
They oddly haven’t lowered the taxes of the residents of the state . Nor lowered the taxes of the small businesses for staying


Who is going to have to pay extra to
Make up the revenue that the state won’t be getting from the company ,
Who most likely will never hold up their end of the bargain .
 
Levigarrett76 said:
Thats the fundamental problem with government, they continue to try and grow.
Click to expand...
And the problem with towns

They all keep trying to grow and grow

Can’t they just stay the way they are ?
I moved to the place I’m at because it wasn’t a huge urban crowded place .
 
Same here, now its starting to explode and all the local .gov sees is dollar signs, So I'm looking to move out of state, Ga is crippled by ATL. What good does growth do? It brings more problems :flipoff:
 
roundhouse said:
Same thing .
They oddly haven’t lowered the taxes of the residents of the state . Nor lowered the taxes of the small businesses for staying


Who is going to have to pay extra to
Make up the revenue that the state won’t be getting from the company ,
Who most likely will never hold up their end of the bargain .
Click to expand...
Fundamental problem with government... they believe they are owed a top-line revenue number...
And fundamental problem with citizens... the believe the same.
Having said that, I hate when taxation is used as a stick or carrot.
 
How it is growing tends to be the problem. It starts to boom in beginning, .gov sees dollar signs and most times they don't learn how they should have been moderating the growth until its too late.
 
Well, I got a raise yesterday at the company I've been at for 3 months. Only 4k, less than a 3% and not remotely keeping up with inflation. Since I live off of 45k a year it will make it so I don't notice it in my lifestyle/cash flow.

In some ways I'm frustrated it wasn't 8%. In others shocked they gave me a raise for 2021 performance year at all when I wasn't even employed with them.:homer:
 
roundhouse said:
Same thing .
They oddly haven’t lowered the taxes of the residents of the state . Nor lowered the taxes of the small businesses for staying


Who is going to have to pay extra to
Make up the revenue that the state won’t be getting from the company ,
Who most likely will never hold up their end of the bargain .
Click to expand...
Far from it.

Had they not given the incentives, the factory goes elsewhere. Therefore no property tax base growth, and no sales tax growth. The tax base remains stagnant.

With the incentives, however, the property tax base remains stagnant for now, but increases over time. The sales tax revenues grow during and after construction, so the current tax base will not see exponential increases.
 
You must log in or register to reply here.
Top Back Refresh