| Author | Message | ||
     Ducbsa |
Gas taxes? https://en.wikipedia.org/wiki/Fuel_taxes_in_the_Un ited_States#/media/File:Fuel_taxes_in_the_united_s tates.png | ||
| H0gwash |
Go ahead and double those taxes and private profit is still the majority of gas prices in CA. | ||
| Ducbsa |
Did you subtract the costs for exploration, drilling, transportation, facilities, refining, environmental controls, distribution, government mandates, and other overhead costs? Have you compared the profit margin of the oil companies to the dotcom biggies? | ||
| H0gwash |
Whatever accounting analysis you do, I'm pretty sure that they take their costs and add in what they feel is a suitable profit for themselves. And another 20 cents if they're on the prime corner. | ||
| Hootowl |
Gas stations don’t make money on gas. That’s the loss leader. They make money on cigarettes and soda pop. If there were money in retail gasoline sales, you’d see an unattended gas station on every corner. You don’t. You see convenience stores with pumps out front. CA has high gas prices because of its special gas formulation requirement and the fact that they haven’t built a refinery there in 40 years, and have to rely on out of state sources. Market forces at work. | ||
| Hootowl |
3 cents per gallon. https://www.cbsnews.com/news/why-gas-station-owner s-love-low-oil-prices/#app The government makes more money on gasoline than the retailer by more than an order of magnitude. | ||
| Needs_o2 |
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| H0gwash |
I stand corrected. The capitalism is more sophisticated than I thought. | ||
| Wolfridgerider |
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| Needs_o2 |
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| Xbpete |
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| Ducbsa |
"The capitalism is more sophisticated than I thought." Yes, this shows the efficiency of free enterprise: https://fee.org/resources/i-pencil/ | ||
| H0gwash |
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| 86129squids |
Efficacy. | ||
| Ducbsa |
Gross profit is greater than net profit, which is what really counts. | ||
| 1313 |
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| Chauly |
Bruce: https://biblio.co.uk/9780679734154 | ||
| H0gwash |
True, but net profit comes from the entire inventory, not just the worst performing inventory whose purchase price you can't control. | ||
| Ratbuell |
No...net profit comes from the balance of revenue versus total corporate expense. You control net profit by managing your expenses, and setting a price structure that makes you money without alienating customers, or pricing you above the competition. net profit n. The gross revenue minus all expenses n. the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses) GROSS profit is more simple - it is the value of unit sale price minus unit cost, without factoring in corporate expenses such as shipping, manufacturing, staffing, etc. gross profit ► n. the difference between net sales and the cost of goods sold n. (finance) the net sales minus the cost of goods and services sold | ||
| H0gwash |
 https://wallethub.com/edu/best-worst-states-to-be-a-taxpayer/2416 This map and article focuses more on the state (not federal) aspect of income taxes, not gas or vehicle taxes, but I'm guessing most of us live in houses for the internet connection, so it is still relevant. The base assumptions of the article may be inherently problematic and they are listed at the end of the article. I was very surprised but share this for further scrutiny. | ||
| H0gwash |
I'm just using the same language as the graph I posted, which supports Hoot's comments. Even if I lose money on gasoline sales on a bad week, if I can cover those losses with profit from selling coffee and sandwiches, my net profit allows me to stay in business another week. | ||
| Aesquire |
While gas is often the loss leader to get folk in to buy burritos and beer, you don't want to lose money if possible, and the price of one tank truck can erase the entire week profit from the store when, not if, the price is higher than you guessed. Sure, a Megacorp owned and run store can tolerate a loss temporarily, supported by big pockets, but franchise owners don't have that cushion. See the business class scene from "Back to School" with Rodney Dangerfield. Reality ain't the classroom simplification. | ||
| Aesquire |
I invite you to move the gasoline argument over to the science/climate thread so we can see more memes and less kvetching over scientific inaccuracy of jokes, and ease the minds of those burnt out on politics. Even though I'm right and everyone else is....  | ||
| Wolfridgerider |
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| Ducbsa |
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| Xbpete |
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| Xbpete |
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| 86129squids |
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| 86129squids |
Sis sent that to me. You're welcome. | ||
| 86129squids |
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