Actually they just lease the space from Wal-Mart and in return pay rent with a % of the sales if I remember correctly. At one time Wal-Mart actually owned them but I believe they sold their % and agreed to lease space to them.its walmart gas, does that tell u anything?
It has been at least 8 years since I was in the retail game with WMT but I would say you are still correct in the margins part...I think that is why they turned it back over to Murphy and agreed to take a % of sales as it worked out in there favor, especially considering many/most Murphy's are simple in design and over limited drinks, cigs, tobacco, and very little chips.Do you guys actually believe there is any difference in gasoline, other than the fact that there are a few places you can still purchase non-ethanol premium? The only difference is the additive package, and I'm guessing there isn't much difference in that between one company and another.
I owned a C-store for several years, and changed "brands" two or three times. It was all on an allotment basis. My distributor agreed, for example, when I was Kerr-McGee to buy so many gallons of Kerr-McGee fuel per year. Well, he only had one other KM station, so if he needed to buy more than we used, he'd simply sell some to his other C-stores. Sometimes my invoice would say Kerr-McGee, sometimes Phillips, sometimes Conoco.
The most important factor is how fresh the fuel is, so buying from a huge retailer like Murphy pretty much guarantees that.
Also, the profit margin on fuel itself is extremely low. Many times c-stores actually lose money on regular grade gasoline if someone buys it with a credit card, especially if they are an independent. Unless the system has changed since I sold fuel, the mid-grade, and, especially, premium is much more profitable. Premium is usually 20 cents per gallon higher, at least, but probably ony wholesales for around 10 cents more.
Oh Yeah! Around the local Wal-Mart there are probably 7 different flavors of gasoline. I use Sinclair (no ethanol) for my mowers and especially their 89 for the handhelds, and different ones when getting to Wally's isn't convenient even for the $0.10/gal savings. We definitely are in the center of Wally's Universe though, but that works for me, and for a lot of others!!In your part of the country is there even another option? You are kind of in the heart of Wally World there aren't you?