I assume that originally, gas stations really did make their money from fuel and from auto service. (After all, in an age when cars didn't work nearly as well as today, they were called 'service stations'.)
But as they competed they drove down the margins on gas, and simultaneously added higher margin sidelines, until at a certain point they were basically convenience stores with gas pumps as customer magnets.
But it's a strange progression, that's for sure. And an interesting thing to remember as the country tries to build out charging stations for EVs.
Reading the article has now made me once again ask a question and wonder, as Levitt asked, "What business are these gas stations in? 🤔"
It's a good point!
I assume that originally, gas stations really did make their money from fuel and from auto service. (After all, in an age when cars didn't work nearly as well as today, they were called 'service stations'.)
But as they competed they drove down the margins on gas, and simultaneously added higher margin sidelines, until at a certain point they were basically convenience stores with gas pumps as customer magnets.
But it's a strange progression, that's for sure. And an interesting thing to remember as the country tries to build out charging stations for EVs.