OT – Gas @ Costco

[all]

[quote=briansd1]
Costco strategically sell certain premium items at low prices to “surprise and delight” their customers.

It’s a branding thing. Shoppers therefore believe that everything that Costco sells is better quality and cheaper.

Most people can’t determine quality and value, independent of branding.

Branding also has to do with social standing. Many will shop at Costco for the cheap prices, but they won’t shop at Walmart because it’s “ghetto”.

Arco has a “ghetto” image. The off brand independent gas stations suffer the same problem. They tend to be run-down and not where you want to be seen. People don’t want to drive their nice cars there. But Costco is OK.[/quote]

It’s hard to find a place than Costco if you are a family of five and you prefer Naked over Kool-Aid. Also, Costco workers are unionized and they still manage to put a competitive product on the market. I refuse to shop at Walmart because of the way they treat their workforce. Likely a losing battle, but I can afford to put some money where my mouth is.

[briansd1]

[quote=ninaprincess]Most gas in California comes from the same regional terminal. I know a corner in OC where the same gas delivery truck stops at ARCO and then Shell.

Credit card companies charges about 2 to 3%. By not using credit card, Arco saves about $0.10 a gallon right there.[/quote]

Exactly. I’ve invested in a gas station. The gas comes from distributors who sell to many branded outlets.

[briansd1]

[quote=ninaprincess]Most gas in California comes from the same regional terminal. I know a corner in OC where the same gas delivery truck stops at ARCO and then Shell.

Credit card companies charges about 2 to 3%. By not using credit card, Arco saves about $0.10 a gallon right there.[/quote]

Exactly. I’ve invested in a gas station. The gas comes from distributors who sell to many branded outlets.

[briansd1]

[quote=ninaprincess]Most gas in California comes from the same regional terminal. I know a corner in OC where the same gas delivery truck stops at ARCO and then Shell.

Credit card companies charges about 2 to 3%. By not using credit card, Arco saves about $0.10 a gallon right there.[/quote]

Exactly. I’ve invested in a gas station. The gas comes from distributors who sell to many branded outlets.

[briansd1]

[quote=ninaprincess]Most gas in California comes from the same regional terminal. I know a corner in OC where the same gas delivery truck stops at ARCO and then Shell.

Credit card companies charges about 2 to 3%. By not using credit card, Arco saves about $0.10 a gallon right there.[/quote]

Exactly. I’ve invested in a gas station. The gas comes from distributors who sell to many branded outlets.

[briansd1]

[quote=ninaprincess]Most gas in California comes from the same regional terminal. I know a corner in OC where the same gas delivery truck stops at ARCO and then Shell.

Credit card companies charges about 2 to 3%. By not using credit card, Arco saves about $0.10 a gallon right there.[/quote]

Exactly. I’ve invested in a gas station. The gas comes from distributors who sell to many branded outlets.

[briansd1]

[quote=captcha] I refuse to shop at Walmart because of the way they treat their workforce. Likely a losing battle, but I can afford to put some money where my mouth is.[/quote]

That’s fine if you want to make a social statement. But the products at Walmart are the same as elsewhere.

My dad likes to shop at Trader Joe’s because the workers there are nice and pleasant to him; and he’s gotten to know them. But they charge 4x more for a slice of brie (the whole round of brie is the same price at Costco). I keep on telling to shop at Costco but he won’t.

It’s upsetting to me to waste money when you can buy it cheaper elsewhere. I don’t really value the shopping experience. I’m more into the products that I buy.

I will buy what I need in advance so I rarely, if ever, set foot in a convenience store. Don’t see the point of paying high prices.

[briansd1]

[quote=captcha] I refuse to shop at Walmart because of the way they treat their workforce. Likely a losing battle, but I can afford to put some money where my mouth is.[/quote]

That’s fine if you want to make a social statement. But the products at Walmart are the same as elsewhere.

My dad likes to shop at Trader Joe’s because the workers there are nice and pleasant to him; and he’s gotten to know them. But they charge 4x more for a slice of brie (the whole round of brie is the same price at Costco). I keep on telling to shop at Costco but he won’t.

It’s upsetting to me to waste money when you can buy it cheaper elsewhere. I don’t really value the shopping experience. I’m more into the products that I buy.

I will buy what I need in advance so I rarely, if ever, set foot in a convenience store. Don’t see the point of paying high prices.

[briansd1]

[quote=captcha] I refuse to shop at Walmart because of the way they treat their workforce. Likely a losing battle, but I can afford to put some money where my mouth is.[/quote]

That’s fine if you want to make a social statement. But the products at Walmart are the same as elsewhere.

My dad likes to shop at Trader Joe’s because the workers there are nice and pleasant to him; and he’s gotten to know them. But they charge 4x more for a slice of brie (the whole round of brie is the same price at Costco). I keep on telling to shop at Costco but he won’t.

It’s upsetting to me to waste money when you can buy it cheaper elsewhere. I don’t really value the shopping experience. I’m more into the products that I buy.

I will buy what I need in advance so I rarely, if ever, set foot in a convenience store. Don’t see the point of paying high prices.

[briansd1]

[quote=captcha] I refuse to shop at Walmart because of the way they treat their workforce. Likely a losing battle, but I can afford to put some money where my mouth is.[/quote]

That’s fine if you want to make a social statement. But the products at Walmart are the same as elsewhere.

My dad likes to shop at Trader Joe’s because the workers there are nice and pleasant to him; and he’s gotten to know them. But they charge 4x more for a slice of brie (the whole round of brie is the same price at Costco). I keep on telling to shop at Costco but he won’t.

It’s upsetting to me to waste money when you can buy it cheaper elsewhere. I don’t really value the shopping experience. I’m more into the products that I buy.

I will buy what I need in advance so I rarely, if ever, set foot in a convenience store. Don’t see the point of paying high prices.

[briansd1]

[quote=captcha] I refuse to shop at Walmart because of the way they treat their workforce. Likely a losing battle, but I can afford to put some money where my mouth is.[/quote]

That’s fine if you want to make a social statement. But the products at Walmart are the same as elsewhere.

My dad likes to shop at Trader Joe’s because the workers there are nice and pleasant to him; and he’s gotten to know them. But they charge 4x more for a slice of brie (the whole round of brie is the same price at Costco). I keep on telling to shop at Costco but he won’t.

It’s upsetting to me to waste money when you can buy it cheaper elsewhere. I don’t really value the shopping experience. I’m more into the products that I buy.

I will buy what I need in advance so I rarely, if ever, set foot in a convenience store. Don’t see the point of paying high prices.

[Raybyrnes]

My understanding of the Gas business is that the additives are added to the tankers picking up the gas. That is part of the difference in pricing. So Shell, BP, Chevron can all get gas from the same filling station but the additives are added to the tank before picking up.

ARCO has generally divested their Stations. Most are owned by independent operators. Same holds true for many stations. Margins on gas for operators of the stations are very thin. They make money when you buy a car wash, go into the store for a cup of coffee etc.

I buy gas at Costco but typically go at off hours so no lines. I also go to Vons because it is convenient and also find myself there at off hours when there are no lines.

[Raybyrnes]

My understanding of the Gas business is that the additives are added to the tankers picking up the gas. That is part of the difference in pricing. So Shell, BP, Chevron can all get gas from the same filling station but the additives are added to the tank before picking up.

ARCO has generally divested their Stations. Most are owned by independent operators. Same holds true for many stations. Margins on gas for operators of the stations are very thin. They make money when you buy a car wash, go into the store for a cup of coffee etc.

I buy gas at Costco but typically go at off hours so no lines. I also go to Vons because it is convenient and also find myself there at off hours when there are no lines.

[Raybyrnes]

My understanding of the Gas business is that the additives are added to the tankers picking up the gas. That is part of the difference in pricing. So Shell, BP, Chevron can all get gas from the same filling station but the additives are added to the tank before picking up.

ARCO has generally divested their Stations. Most are owned by independent operators. Same holds true for many stations. Margins on gas for operators of the stations are very thin. They make money when you buy a car wash, go into the store for a cup of coffee etc.

I buy gas at Costco but typically go at off hours so no lines. I also go to Vons because it is convenient and also find myself there at off hours when there are no lines.

[Raybyrnes]

My understanding of the Gas business is that the additives are added to the tankers picking up the gas. That is part of the difference in pricing. So Shell, BP, Chevron can all get gas from the same filling station but the additives are added to the tank before picking up.

ARCO has generally divested their Stations. Most are owned by independent operators. Same holds true for many stations. Margins on gas for operators of the stations are very thin. They make money when you buy a car wash, go into the store for a cup of coffee etc.

I buy gas at Costco but typically go at off hours so no lines. I also go to Vons because it is convenient and also find myself there at off hours when there are no lines.

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