GSB-15: The Gasoline Game | 5 Key Elements of Fuel Pricing You Need to Know

Gas Station Business 101 Podcast - How to Start, Run and Grow a Successful Gas Station Business

Welcome to GSB 101 podcast this is episode 15. In today's episode I want to bring everybody's focus on the biggest bulk of our business which is gasoline or fuel. If you are in gas station business more than 50% of your revenue comes from selling fuel. But I know we have not talked about it at all. It is kind of like the big elephant in the room we all it's there, but no one wants to talk about it.

In this epsiode I talk about Fuel or Gasoline part of your business has many moving parts, and even being in this business for many years some of us still do not know what is rack price, or what is jobber markup or what pool margin is all about.

I discuss how to clarify and simplify all those components of fuel and everything that is associated with this part of our business.

We discuss what are:

1. Dealer-Jobber agreement
2. Fuel carrying cost
3. Demurrage fees
4. Fuel surcharge imposed by your carrier and not your jobber.
5. Credit card fees

I also explain the 5 important elements of Fuel Pricing in depth, which are:

1. Crude Oil price
2. Rack Price
3. Jobber Markup
4. Net cost
5. Pool Margin

The book I want to recommend today is written by Don Norman, and the book is called The Design of Everyday Things.

This book won't help you sell more beer or cigarettes, but it will open your mind up and think of items we sell every day and they and why they are the way they are. Make sense? No? Well, read the book.