Profitability of No Zero Roulette?
September 14th, 2016 at 4:56:38 PM
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Yea CP, there's a similar strategy already employed by some retail gasoline station/convenience store combos ('boutique retailers').
They'll sell gas at or close to cost and break more or less even, but know that customers will venture into their stores and buy high-margin items like coffee, sandwiches, etc.
A gas station-only facility has difficulty competing, because if they sold gas at breakeven they wouldn't turn a profit, and they have no other income streams to rely on.
So they're forced to sell gasoline at higher prices than the boutique stations, which in turn draws people toward the boutique stations because folks see that they regularly sell cheaper gas.
They'll sell gas at or close to cost and break more or less even, but know that customers will venture into their stores and buy high-margin items like coffee, sandwiches, etc.
A gas station-only facility has difficulty competing, because if they sold gas at breakeven they wouldn't turn a profit, and they have no other income streams to rely on.
So they're forced to sell gasoline at higher prices than the boutique stations, which in turn draws people toward the boutique stations because folks see that they regularly sell cheaper gas.
