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Thread: Going to run out of petrol

  1. #1
    Regular Member m8internet's Avatar
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    Default Going to run out of petrol

    http://www.bbc.co.uk/news/business-14508213
    I noticed this earlier in the week and have been watching local prices
    After discussion with BP, the Directors of our small chain of forecourts took the decision yesterday to advise eight of our petrol stations not to place orders until further notice
    This means three will probably run out of petrol on Sunday and the remainder on Monday
    This is now the third time we have had to take such action

    It's bad enough being 1p above the local supermarket, but when working out the cost is the same as the retail price leaving nil profit, well that says it all

    On the plus side, at least we won't suffer any drive offs and thefts!

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    Full Member gibbon7000's Avatar
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    Why only 8/10 and not 10/10? Although you will not make any profit on petrol is it wise to still not sell it, what about all the other things customers will buy from your outlets. I can only assume that the labour costs outweigh the profits

    My other car. 1972 1641cc slammed beetle. On the road finally!!

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    Regular Member m8internet's Avatar
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    Quote Originally Posted by gibbon7000 View Post
    Why only 8/10 and not 10/10? Although you will not make any profit on petrol is it wise to still not sell it, what about all the other things customers will buy from your outlets. I can only assume that the labour costs outweigh the profits
    The others are effectively socially necessary, with no supermarket within 5 miles, wew therefore do not use this tactic for them

    The local press and community fully support us each time, although a small number of motorists were inconvenienced

    I do agree that we will lose a small number of customers to the shop, as the petrol brings them in, but what is the point when the petrol you are selling loses you money
    At weekends this is not such an issue, as the spread of purchases is quite high (newspapers, soft drinks, snacks, car wash, jet wash)
    During week days the fuel sales increase vastly
    Also schools are due to go back next week, so the usual demand will resume

    I understand some of the other local petrol retailers have also cancelled their orders for next week too
    The last time this happened both Asda and Tesco ran dry within 12 hours and it took three days for them to recover
    I expect BP to reopen negotiations as soon as they realise what is going on, however by the time everything is put back in place the next delivery will be Thursday or Friday

    Finally, our workforce is very flexible when we do this, and we give them partial paid days off or partial holiday days and the store management simply keep the shop open themselves (repaid later as holiday in-leiu)
    Last edited by m8internet; 13th August 2011 at 07:14.

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    Regular Member yorkshireborn's Avatar
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    Default

    we have a fuel station near us it seems to change brands as it changes its prices.

    over the last 20 years it started as a Q8 then that was chaned to Jet then to my best knollage its been a texaco twice a shell twice a murco a BP 3times and now its a jet again.

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    So the reason for this is so that the supermarkets will run out of fuel then the BP independents will get petrol almost right away but the supermarkets wont?

    TBH I blame the petrol stations for not diversifying enough for loss of business. The supermarkets have done it but the Oil companies missed a trick, they sat there sitting on their hands.
    I have found that oil companies petrol stations shops are getting bigger and bigger which mean when I go to buy petrol you end up having to sit in a queue while the people in front of me decide to go into the shop and do shopping. Whereas I find the supermarket petrol stations have very small shops and more importantly Pay at the Pump's facility which means you can be in and out far quicker. On a side note, and this may have been worth a poll, how many people here actually pay for petrol using cash any more? Your taking about thefts and drive off, but if pumps went all card payment this would prevent drive off's from forecourts. I realise that these card only pumps cost more money but surely would pay for themselves in the long run.
    "We are not some sort of dictatorship!"


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    Regular Member m8internet's Avatar
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    Quote Originally Posted by yorkshireborn View Post
    we have a fuel station near us it seems to change brands as it changes its prices
    This is one of the issues when you are a dealership (independent)
    The contracts are between 3 and 10 years (although you can terminate with 3 months notice without penalty)
    You then have to balance the price support, brand name, and customer goodwill

    I made a mistake many years by swapping from BP to Shell
    Yes, the price support was better but we found the number of customers actually fell
    As soon as the contract was due for renewal we moved back to BP

    Furthermore you then have the oil companies regional strategies
    As an example in the Midlands Texaco and Shell did a swap
    Texaco here in Scotland swapped to BP
    So if a dealership was Texaco then signed up to Shell, they could then find they would be rebranded to Texaco

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