The National Average Retail Mark-up on a Gallon of Gasoline (2010)
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#1 Apr 22, 2011
The correct answer is 16.3 cents per gallon, and that is the gross mark-up before expenses like labor, business taxes, rent, light, heat, credit card and bank fees, equipment and hardware, etc..
The actual profitability, after all expenses are taken into account, is 4 to 5 cents per gallon.
A vehicle filling up with 10 gallons of $3.90 per gallon fuel gives the dealer a net profit of --- hold your breath!--$.50 -- that's Fifty Cents on a $39.00 sale!
Are you sure you want to get into the fuel retailing business?
P.S. Don't look for Warren Buffett to be buying any large chain of fuel retailers anytime soon.
#2 Apr 22, 2011
#3 Apr 22, 2011
Why does it seem that Sunoco on Merrill road is always up to 9 cents a gallon higher than the average? Is it because of their relationship with Price Chopper where a shell game suggests that food shoppers are getting a bargain on their gas if they buy food at PC? Is that supposed savings really added into the cost of the food before you purchase it?
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