whose advertised gas price is about $0.50/gallon higher than nearly every other gas station in the surrounding area. These stations are usually in very high traffic areas and relatively close geographically, to other gas stations with much lower prices. But they never have a gas station right across the street that has lower prices. They are always a few blocks away.
For years I could never understand how these gas stations could be profitable. They don't tend to have large mini marts or garages for auto repairs to offset their high gas prices.
And most importantly, they rarely have a large number of customers filling their tanks.
Driving by these gas stations and looking at these prices always shocks me.
Then when I got to a gas station just 6 blocks away I was always relieved that I wouldn't be paying $0.50/gallon more. Relived and more willing to pay that price.
Two days ago I flipped my thinking upside down and a possible reason why the expensive gas stations exist came to mind.
Perhaps they aren't meant to make a profit.
Perhaps shocking every consumer who drives by is their sole purpose, so when those consumers do stop and pay for gas, they feel relieved that they're not paying $0.50/gallon more right down the street.
Next time you see one of these gas stations, look at where they are located, see if they are busy, and if there's time, check out the price of gas in the immediate area.
I'd love to hear some feedback on this.
How off base am I?