Lending Club Blog

The High Price of Convenience

While you may feel gouged at their gas pumps, making other purchases at a gas station convenience store is where you might see the highest prices.

We often hear conspiracy theories about the profits made by gas stations, but this recent article helps to put things in perspective. It describes how many stations are barely breaking even on gasoline sales. Some are even losing money. How can they stay in business? By selling other products and services at marked up prices.

The biggest obstacle for these stores is the fact that another convenience item, paying at the pump, keeps you out of the store. By making an investment in advertising and offering other incentives, owners are trying to lure you back into the store. By selling everything from snacks and drinks, household items, groceries, and made to order food, they are able to satisfy many of the needs that were traditionally reserved for larger stores. For years, they have also had ATM machines, which have above average withdrawal fees for borrowing money.

Depending on what your time is worth, picking up a few items at a truly convenient store, may be worth the higher prices. If you can save time and gas by not having to drive to a distant store with better prices, you may be able to justify it. For many of us, knowing that the prices at convenience stores are inflated to make up for small margins on gasoline should be reason enough to avoid making any purchases other than our main reason for going: to buy gas.

While you have to buy your gas from a gas station, you have better choices when deciding where to buy other items. Making an occasional purchase at a convenience store may be unavoidable, but on a regular basis, lower prices elsewhere likely beat any perceived convenience.

Thursday, April 24th, 2008 at 6:00 am

Comments (0)

  • Archives z

Recent Posts

We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Finding the right company culture for you

How important is company culture to you? At Lending… Read More »
September 30, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

5 Things Everyone Should Do Before a First Interview

After spending hours drafting your… Read More »
June 24, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014