AndyO Blog

Tuesday, June 05, 2007

Where does your money go at the gas station?

I heard a story on the way home on NPR that was quite surprising. In a nutshell, the average retailer's gross profit on a gallon of gas is only $.15. So where is your hard-earned $3-plus dollars per gallon going at the pump? Here's an interesting graphic:

Breakdown of Gasoline Prices

So the retailers end up making most of their money from the items they sell in the store. I guess this is similar to movie theaters making all their money at the concession stand. And one of the biggest profit makers? Bottled water at 50-60%.

Top Sellers at Gas Station Stores
  1. Cigarettes (34.4 percent)
  2. Packaged beverages (13.8 percent)
  3. Beer (12.2 percent)
  4. Food service (12.1 percent)
  5. Other tobacco (3.8 percent)
  6. Candy (3.7 percent)
  7. Salty snacks (3.2 percent)
  8. General merchandise (2 percent)
  9. Fluid milk products (1.9 percent)
  10. Packaged sweet snacks (1.5 percent)

Source: National Association of Convenience Stores

posted by AndyO @ 6:40 PM   0 comments links to this post