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Petition to have Costco reinstall charging stations
- Thread starter Chris TX
- Start date
I'm viewing those observations that Costco sells gasoline meaning they've no interest in courting EV drivers to be as reasonable as the observation that since they sell Hershey bars, they won't sell Snickers. Or that selling chicken would cut into their sales of beef. Does anyone honestly think Costco would scorn a Tesla owner and his wallet just so they can sell 14 more gallons of gas? That's preposterous.
mitch672
Active Member
of course not, but they are now leaning towards the money, they don't seem to care much abut being seen as green, or greenwashing. It's a very plain change to corporate policy, from years ago when they supported EV's by installing charging stations.
nwdiver
Well-Known Member
'We don't need more customers' -Said no retailer... EVER
Even gas stations don't make most of their $$$ off selling Gas; The business model has almost always been to get people to buy a $1 snickers bar... or 72 rolls of toilet paper. The primary objective for Safeway, Costco, Wal-Mart... any retailer that sells gasoline isn't to profit on the gasoline sales... it's to drive up TOTAL sales. If they loose $10k selling gas but increase net revenue $20k due to increased traffic then that's a win.
http://www.cbsnews.com/media/12-things-about-costco-that-may-surprise-you/8/
"When prices are going up a nickel a day, obviously we're getting hammered," Sinegal once said. So why keep selling gas? Because it increases the customer loyalty that Costco prizes.
'After credit card fees and other operating costs, net profit for gasoline sales averages 3 cents a gallon, according the National Association of Convenience Stores.'
I'm guessing there's more profit in the $3 16oz iced mocha people buy :wink:
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mitch672
Active Member
a million dollar 16 pump gasoline station is a lot of scratch for "customer loyalty".
Other gas stations don't have costco's buying/negotiating power, costco does nothing without it being profitable.
COSTCO could not get the deal they wanted with American Express, so amex is being ejected from COSTCO next April. AMEX admited that COSTCO account for %16 of their total business. That's purchasing power.
guaranteed COSTCO is squeezing every penny out of their gasoline supplier, it's like "hey, play ball with us or your gone". Sure, the gas station brings people to an already crowded COSTCO, but not to the extent you surmise.
Other gas stations don't have costco's buying/negotiating power, costco does nothing without it being profitable.
COSTCO could not get the deal they wanted with American Express, so amex is being ejected from COSTCO next April. AMEX admited that COSTCO account for %16 of their total business. That's purchasing power.
guaranteed COSTCO is squeezing every penny out of their gasoline supplier, it's like "hey, play ball with us or your gone". Sure, the gas station brings people to an already crowded COSTCO, but not to the extent you surmise.
nwdiver
Well-Known Member
.... How much is Tesla spending on Superchargers? ....How much profit is Tesla Making off those? Costco isn't giving away gasoline... but with the cost of the station and the cost of the fuel they're not making much either. This isn't speculation... Costco says the primary objective is to get feet through the door. Yeah, obviously they want to BUY the cheapest gas but the more important part is SELLING the cheapest gas... regardless of profit... they want more foot traffic. Profit at the pump is a pittance compared to what they make in the store.
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Mitch - if you have an issue with Costco that certainly is a right to which you are welcome. Perhaps those sentiments don't belong in this thread, which is about requesting people sign a petition to persuade the company to request it to install chargers.
mitch672
Active Member
no issue at all, like I said costco makes money at everything they do, or they don't do it
Costco Profits Surge on Lower Fuel Costs - WSJ
Costco Profits Surge on Lower Fuel Costs - WSJ
nwdiver
Well-Known Member
Yes, Costco is more profitable because it sells gasoline... but those extra profits generally don't come FROM gasoline sales sometimes they do and sometimes it costs them $$$. The REASON Costco sells gasoline is more people to their stores. It's called a Loss Leader for a reason. Bananas and Rotisserie Chicken are also in this category.
http://business.time.com/2011/06/29/walmarts-new-loss-leader-cheap-gas/
http://www.bloomberg.com/bw/article...s-a-beating-on-cheap-chicken-switches-to-kale
This is amusing testimony from Costco... denying that they sell gasoline as a loss leader then admitting they do occasionally sell it at a loss to ensure they always have the lowest prices or match the lowest prices... kinda the definition of a loss leader.
'We have read that some of our competitors believe we sell gasoline as a “lossleader.” That is simply not the case. Sometimes meeting the competition means that --where it is lawful to do so -- we sell below our cost, usually on a temporary basis. We willnot, however, sell below cost unless meeting competition requires us to do so and it islegally permitted. In such circumstances, we would only lower prices to “meet” thecompetition and not “beat” it.' - Costco Vice President
Can't think of a better 'loss leader' than free electricity :wink:
http://business.time.com/2011/06/29/walmarts-new-loss-leader-cheap-gas/
http://www.bloomberg.com/bw/article...s-a-beating-on-cheap-chicken-switches-to-kale
This is amusing testimony from Costco... denying that they sell gasoline as a loss leader then admitting they do occasionally sell it at a loss to ensure they always have the lowest prices or match the lowest prices... kinda the definition of a loss leader.
'We have read that some of our competitors believe we sell gasoline as a “lossleader.” That is simply not the case. Sometimes meeting the competition means that --where it is lawful to do so -- we sell below our cost, usually on a temporary basis. We willnot, however, sell below cost unless meeting competition requires us to do so and it islegally permitted. In such circumstances, we would only lower prices to “meet” thecompetition and not “beat” it.' - Costco Vice President
Can't think of a better 'loss leader' than free electricity :wink:
MichFin
Member
It's my belief that Tesla has killed the EV charger because of the long range in their cars. People have realized that they don't need to puts around in tiny little cars with short range to drive an EV. I strongly believe that then next wave of EV's will all have range of 200+ miles and people will just charge at super chargers or high speed chargers when they're going on a road trip. I have had a Volt for over a year and can count on my hands the amount of times I've charged somewhere other than home. Now I have a Tesla also and I can't imagine charging 10 miles an hour at Costco would make me want to go there any more than before.
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