Texaco has started putting up billboards in the DC area (something I haven’t seen much from gas companies). Maybe they feel they’re losing business. While I don’t have any business degrees I know exactly why the Texaco near us isn’t getting any customers. (and I’ve seen similar but slightly less dramatic examples with the other local Texacos)
The Texaco’s price is $3.57/gallon. The Exxon directly across the street is selling it for $3.42/gallon. That’s a $0.15 difference simply for going across the street.
I don’t understand…it’s been like this for the last few months. Started at 7 cents difference, 11 cents…now 15 cents.
When I drive by, the Exxon is crowded with lines…sometimes extending into the shoulder of the road outside. The Texaco has possibly 2 drivers for its 8 pumps. The Texaco also requires you to pay inside, even with a credit card. The Exxon lets you pay at the pump.
So my advice to Texaco:
Just for starters, take the money you’ve been spending on those billboards and use it to lower prices at your gas stations. Nobody cares enough to spend $.15/gal more for your gas when there’s a legit company (Exxon…vs. some no-name station) right there. It’s not even more convenient.
While the gas may make you less per gallon, you’ll sell a lot more–profit ensues.
When this simple but innovative strategy increases your profit by 200%, you’ll receive my consulting bill. 😉