The tier pricing debate still don't sit right with a lot of people.
Are you implying that the profit margin % is now less with the higher per gal price?
5% margin on $2.00/gal, vs 5% margin on $4.00/gal. is how I see it.
. In Maine if you can get 12 to 15 cents a gallon you are doing well. I've worked on gasoline equipment for most of my professional life. That 12 to 15 cents hasn't changed in the last 30 years. When the price is climbing you can count on less margin, when the price is dropping you can count on higher margins. at 4 bucks a gallon, a 2.5% credit card charge means 10 cents out of the 12 or 15 cents the dealer has to work with. Locations pay 5 figure charges to credit card compaines every month .
Even the major oil companies want out of the retail gas business. My customers(all mom and pops or distributers) make far more money on sandwiches than they do on the millions of gallons of gas they sell every year.
Dunkin Donuts has 20 cents in a coffee you pay 1.79 for yet people line up in droves for it and never whine a bit about it.
