Posted on 04/17/2022 6:17:41 PM PDT by Leaning Right
As of today, March 22, 2022, AAA reports that the average price for a gallon of gasoline in the United States sits at $4.24. Obviously, that's subject to change, and since it's an average, the actual cost for someone in one part of the country will be different for buyers in another. Regardless, based on recent history, that's a lot more than drivers are used to paying for a gallon of gas. So you'd think a gas station could drum up quite a bit of business for pricing fuel less than its competitors, right? Not so fast, at least if you're in Wisconsin.
A gas station managed by Woodman's Market in Waukesha, Wisconsin, was recently sued by two competitors who say it has priced its fuel artificially low.
(Excerpt) Read more at autoblog.com ...
Price gouging? Oh, you’re in trouble.
Failure to price gouge? Oh, you’re in trouble.
less than the station itself paid for it. Apparently, that’s a crime in Wisconsin, and the rival stations are suing for damages totaling $80,000 each. That’s apparently based on the number of days they claim that Woodman’s illegally undercut them.
Woodman’s counters that it isn’t breaking Wisconsin’s so-called Unfair Sales Act because it has priced its fuel to compete with a nearby Costco gas station. As you can see by clicking on Autoblog’s own cheap gas finder, Costco generally prices fuel lower than other stations, which it can do because a significant portion of its profits are derived from membership fees. Costco won’t sell gas to drivers that don’t pay those membership fees, unlike other stations like Shell, BP and Woodman’s.
We’re not legal experts, so we can’t really comment on the merits of this lawsuit, but, as WISN found when polling pumpers pumping gas, Woodman’s tactic to price its fuel lower than other stations seems to be working. “How come you pump your gas here at Woodman’s,” the reporter asks. “Woodman’s has the best prices,” comes the seemingly obvious reply.
Mike
23 March, 2022
Woodman’s is consistently the cheapest in my area, usually the same price as Costco. The one by me has two “stations”, and during the daylight hours they are both stacked 3-deep, every day. Most of my family’s gas comes from Woodman’s.
Woodman’s also has the best selection of cheeses anywhere.
In a related note, with MA prices around $4.20, BJs has the lowest price around, at $3.93.
Filled up yesterday, Saturday, after some shopping. I thought the pump was broken, but I wasn’t saying anything - too bad I was merely topping off, rather than a full fillup - pump indicated the price was $3.43. I did have a double-take at the price, wondering if the ‘4’ might be missing the top line to make it a ‘9’.
Then, I noticed a placard near the pump - $.50 cents off each gallon, within a day, you spend over $100 at the store.
Anyways, offer good thru end of the month. Gotta buy the gas after groceries - do it the other way around, and pay the usual price.
Kroger's does.
As does Hy Vee in the midwest.
> A number of stations that are connected to a store have a lower price for customers. <
And that’s the argument Woodman’s is making. If Costco can do it, why can’t we do it? Maybe Woodman’s should just sell “gas memberships” for a dollar a year.
Anyway, I’ve read that most gas stations make their real money on the add-ons: the candy bars, the coffee, etc. that you buy while you’re there getting gas.
Also, it used to be that stations would get paid for moving volume and some would price at or below cost,and get their profit from the volume payment.
Can’t they understand that he’ll just run out sooner?
My son went to a local chicken fast food drive thru and said there was a sign offering a $10 gas card if you bought the family meal.
Loss leading is illegal in some states.
Is it illegal in this one?
If not, this isn’t a criminal or a civil case.
If you have a C-store you can make more profit on the twenty ounce mug of coffee then the ten gallons of gas and still under cut Charbucks.
CA great news: Gasoline PLUNGED two-tenths of a cent to $5.807 yesterday.
> Loss leading is illegal in some states. Is it illegal in this one? <
Evidently it is in Wisconsin. But Woodman’s is saying that if Costco is doing it, why can’t we?
Per this...
https://datcp.wi.gov/Pages/Programs_Services/UnfairSalesAct.aspx
Looks like Costco shouldn’t be doing it, either...
Wisconsin has a minimum markup law for everything. Black Friday deals are different in Wisconsin because of this.
But there is an exception to the minimum markup law for meeting a competitor’s price, as long as the competitor is not breaking the minimum markup law themselves.
There also are some goofy laws regarding gas prices - like you cannot change them more than once a day.
See my reply #16.
You’re right. The law is an a$$.
I seem to remember Pick n Save (now Krogers) also sued Woodmans for their grocery prices under the same minimum markup law. To which Woodman’s pointed to the Pick n Save add for something like a free Thanksgiving turkey if you spent $50 in the store. Their point being what’s the difference? A loss leader is a loss leader.
I understand the desire to prevent a giant from pricing out the competition in order to put them out of business. But the Wisconsin minimum markup law is a bit goofy.
You see signs at gas stations saying “cigarettes sold at the minimum legal price.”
One more thing. Kohls still has the 30% off promotions in Wisconsin. To be compliant with the law, that means everything in their store has to already have a 30% markup. They do list some exceptions, like some Kitchen Aid or Crocs, so those must not have as large a markup.
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