Prasius

iTrader: (1)

Something just struck me, and I'm sure it has a perfectly sensible explanation, but I'm going to ask it anyhow..

If you buy a pint of milk, or an apple, or a loaf of bread from Tescos, it'll be the same price as every other tescos. If you buy a mars bar from Shell, it'll be the same price as a mars bar in every other shell.

So.. how come petrol stations of the same company has petrol prices that vary so much within just a few miles? How come petrol isn't a set price on any given day across the country in any given companies stations?

Mars bars prices don't vary depending on how far they've had to travel from Nestles (?) factory... so that explanation doesn't make much sense to me!

v8voodoo

Brilliant question.

I'd love to know as fuel down here in my town is more expensive than 99% of other places I've been and that includes a town a couple of miles away. Same brand as mentioned above to.

SWRTWannabe

It's so that you're so pleased with yourself for finding a station that is 0.1p cheaper a litre than the one down the road, that you forget that you're paying an arm and a leg for your tankful.

Odds on

Aren't petrol stations normally franchises? The owner will be the one setting the prices if that's the case.

Bit like Maccy D's and Burger King, there prices vary quiet a bit.

Luminous

iTrader: (3)

*loads standard answers for a fuel price thread*

Your being charged what they can get away with *nods*

It is going to be as simple as that. If they can charge a little more than a neighbouring town then they will.

stilover

Is it not they charge what they think they can get away with. London Petrol prices are way higher than those oop north.

Plus why is it, you buy a can of Pepsi in a corner shop and it's 50p yet buy the same can at a motorway service station and it cost a ******* fortune

Luminous

iTrader: (3)

Because you are being charged what they can get away with

Prasius

iTrader: (1)

So what we're saying is that they're just EVIL NASTY oil giants that are charging us extortionate amounts of money in order to fill the coffers of their morally bankrupt business?

Well that makes sense.



But while many Shell/BP/Esso are franchises, it doesn't explain why supermarket petrol prices aren't standard across every shop. Or, indeed, why Tesco's just doesn't do whatever dodgy little deals this suggests the franchises do between each other, and push up the prices of Milk?

Luminous

iTrader: (3)

they universally pushed up the price of milk by extorting farmers

I guess its just down to convention. Supermarkets have always had standard prices, but did not always sell fuel. The fuel stations are separate to the main supermarkets and work in pricing just like the rest of the industry. I cannot see any other reason than that....

...but you have diverted me from my EVIL NASTY oil giant bashing for long enough now

StickyMicky

if i buy 5 custard donuts in my local asda across the road from the carwash, they are 55p, when my G/F bought some while at her dads 20 miles away, they were 74p!!!

scandalous

Prasius

iTrader: (1)

Damnit! Thats my theory out of the window....

Who would have thought it - a pack of custard doughnuts coming to the rescue of the oil companies

Terminator X

iTrader: (7)

Prices for everything vary across the UK don't they? A Mars Bar will be 50p down South & less up North. Why else would people live Up North if it weren't any cheaper

TX.

fatscoobfella1

iTrader: (1)

Coz us northerners dont like shandy!!

scunnered

iTrader: (1)

The supermarket petrol stations will look at the petrol prices locally, and price match accordingly.

The big companies are definitely ripping off the public. Recently I needed to buy some screws. I had a look in B&Q, and found what I was looking for at £4. My local small town independent Ironmonger had the exact same screws for only 20p.

Dracoro

Some people need to read up on some basic economics.

They are run by franchisees, not Shell/Esso etc. and these franchisees will try to make as much profit as possible whilst staying competitive (it's called business!). The more stations within a small area, the cheaper the petrol (the lone station in the middle of nowhere has little competition, and trade sometimes!, so can/has to charge more.

Mars bars being the same price, well of course but they aren't the primary selling item. If there were a mars bar "station" that sold thousands of mars bars a day and there were many of these all over the country then they would be different prices.

Petrol (& diesel) are what they sell 99% of at petrol stations and they sell a lot. Also they are franchises with varying rates to pay for the land (park lane london will be far more expensive than blando street in anonymoustown) the station is sited on. That's why supermarket petrol can be cheaper, the station is sited on their land so the overall cost can be "soaked" up by the cost of the WHOLE site including the parking, store etc. as well.

Henrik

iTrader: (5)

Heh, this reminded me of when I was at a service station in the middle of the desert in Egypt... 4.50 uk pounds for a can of coke they wanted when I went up to pay... I promptly put it back

PeteBrant

McDonalds, Pizza Hut, Dominos, Wimpy etc etc are franchises as well, but you don't see thier prices vary from area to area.

Being a franchise does not automatically mean you get to set your own price.


It is pretty much only the petrol business that this sort of thing is accepted as the norm.

stilover

Klaatu

You are comparing apples with baby back ribs.

Dracoro

It does if the Franchise conditions specifiy that it is (i.e. as part of the conditions of taking on a franchise you adhere to certain prices/standards etc.). It is with many of the food chains but not with petrol stations.

BTW, Dominos prices do vary. My local in Purley is cheaper than the one 3 miles down the road in Croydon!

PeteBrant

In what way?

Klaatu

Read what Dracoro posted. It's correct! You can't compare "food" franchises with "petrol" franchises, the rules are VERY different.

PeteBrant

No they are both franchises. Dracoro made the point initially that it was because petrol station are franchises that prices vary so much - This is obviously not true, given that McDonald etc , which are also franchises cost the same no matter where you go.

Therefore saying "its because they are a franchsise" is wrong. Especially when prefixed with "some people need a basic grasp of economics"


Petrol is about the only product I can think of that can vary with unerring regualrity from one place to another, not only fro the same product, but from the same "company" for the same product. And that has bugger all to do with franshising and everything to do with market pricing dependant on location versus avaible supply - Hence a petrol station next to a supermarket one will be competative, a service station on a motorway will be hideously expensive.

Regardless of the reasons - It really shouldn't be allowed.

Klaatu

Again, you are comparing two very different franchise "spaces", which operate differently, have different regulations, different standards etc etc. Franchise or not, with petrol, you are at the whim of the operator.

Many things "shouldn't" be allowed, but they are because we keep buying.

PeteBrant

Precisely - and that; what I am trying to say - The fact it is a franchise is irrelevant.

Dracoro

How else would you do it?

Land costs more in town than in country.

So if prices are fixed then they have to all either go to one price (the more expensive one!) or they'll give up on expensive petrol stations and we all have to travel futher to stations where land price is less.

The alternative would be for the petrol stations to own and run all the petrol stations (i.e. get rid of the franchise type of operations) and this will be more expensive for them so prices will rise.

Bascially the alternatives will mean higher fuel costs....

Pete, I didn't say they vary directly because they were franchises (even if my post was open to misinterpretation), the point was prices at stations weren't fixed by the petrol companies hence the price differences.

Klaatu

No, it's still a franchise, but not like McChunders etc etc etc (My Bro is a store manager for McChunders, in the UK of course), that's the difference.

Leslie

Combine this answer with Luminous's and I reckon thats the story.

Les

PeteBrant

Again, a Mcdonalds in Regents street will cost vastly more than one in Bognor Regis, but the price doesn't change.
Invariably, the higher land price will have a higher customer base - So it balances out.

This is proven by the fact that often a country lane petrol station will have higher prices than one in say, chelsea, due to the customer base/competition being tiny.

Klaatu

You are still comparing two very different franchise market spaces. The two will never "balance".