Costco gas

SunnY S

SunnY S

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they just opened a gas bar in Ancaster costco.

Whats the deal? How are they 7-10cents a liter cheaper than everywhere else?

Anybody know who supplies their gas?
 
They buy it from whoever sells it for the best price given a quantity.... much like many other stations.

They also probably make very little to no money on it, or perhaps even use it as a loss-leader to get people into memberships. Nothing funky about it. Considering how much gas they probably sell, I'd bet its "fresher" than many other stations around, especially those outside the cities.
 
Love the Costco gas...usually 4 - 5 cents cheaper.
Gotta line up sometimes.
Gotta be a member.
Can only use debit card or American Express....no cash
 
I've been putting their premium gas in my cage for couple of years now. No issues so far. And is about 15 cents cheaper than the other gas stations. Here are the negatives:

- Long lines.
- They close early.
- a lot of customers still having hard time paying at the pump which adds to the wait time.
- somehow I am always stuck at the slowest line!
 
SunnY S said:
they just opened a gas bar in Ancaster costco.

Whats the deal? How are they 7-10cents a liter cheaper than everywhere else?

Anybody know who supplies their gas?
Click to expand...
Their business model is to offer high volume at low margin. The same applies to their gas. They probably make next to nothing per litre on it, but they sell a **** ton since they are always cheaper than anyone else. Since their business is already very diverse they don't need it to be a high profit contribution to benefit their overall sales. Your average gas station is out to make as much money as they are allowed by the price settings of their brand. Costco could care less as they know they'll recoup the revenue in other area's. You have to be a member to buy the gas so they know you're going to end up in their store at some point too.
 
My local Costco is never more than 2 cents a litre cheaper than other stations. Seeing people lined up 10 deep waiting 20 minutes to save $1.20 is in my book insanity.
 
Agreed ^

I'd never wait in line for gas just to save pennies.. these people are ill.


I can understand MAYBE waiting 5 minutes if the savings on a full tank is gonna be something like $10 or $20.
 
I agree with the line-up issues. I find that if I hit the Costco (Etobicoke) on my way to work in the morning I never wait more than a minute or two, even when the price is really high--all about what time you go. Been doing it since they opened, no gas issues yet.

For our old Hyundai regular gas was typically 4 to 6 cents cheaper, still some savings in the long run but no way worth a line-up. Now that I am running premium (Saab Turbo) the saving is even bigger. Usually in the 10 to 15 cents a litre range (there have been times where the premium there is only a cent or more than regular everywhere else)! Still not worth a line-up, so I pick my time.

I find the price difference to be pretty constant, what I find really odd in a way is why are all the SUVs line up when reg gas is in the 1.40 range but there are no lineups in the 1.20 range? If it is always say ~5 cents a litre cheaper regardless of price. The SUV holds say 100 litres, you save as much as $5.

Now if it is 5 cents cheaper than 1.20 you save $5, if it is 5 cents cheaper than 1.40... you save $5. It is still $5. Somehow $5 is worth a 45 minute wait when gas is 1.40 but not at 1.20.... I know it is about the total price, but $5 is $5!
 
Because at $1.20 people arent panicking any more. At 1.40 everybody goes nuts.


Side note: i cant believe you voluntarily chose to pay a premium to drive a Saab :lol:
 
mmmnaked said:
Because at $1.20 people arent panicking any more. At 1.40 everybody goes nuts.


Side note: i cant believe you voluntarily chose to pay a premium to drive a Saab :lol:
Click to expand...


If your using your AE card you'll be saving more than $1.20 per fill up in the end.
 
your local gas stations probably had to drop the price to complete with Costco vs price fixing with the other stations.
 
mmmnaked said:
Because at $1.20 people arent panicking any more. At 1.40 everybody goes nuts.


Side note: i cant believe you voluntarily chose to pay a premium to drive a Saab :lol:
Click to expand...

Well actually I paid $2400 cert and e-tested, not much of a premium... but it requires mid grade and premium at Costco is cheaper than mid anywhere else...

starboy869 said:
your local gas stations probably had to drop the price to complete with Costco vs price fixing with the other stations.
Click to expand...

I have noticed the ones closest have, but they are still a little more on reg and way more on premium.
 
A penny saved is a penny earned. And if I save $2 in 20 minutes, that means I save $6 in an hour. That's working for less than minimum wage!
 
Ultramar on hiway 48 near Sutton is always 2-3 cents cheaper than Costco in Newmarket.
I see its always really cheap in Peterborough too.
 
Think its crazy to line up to save 5 bucks on a fill up? SO DONT DO IT!!

We're on a motorcycle forum, so the general view here is much different than normal simply because generally, having a recreational vehicle means you have extra income to spend, or are of the mindset that will allow you to not care about 5 bucks here and there.

I use Costco gas every week, sometime more....i save $3 a fill-up, i go during work time when the line ups are 5 min long or during lunch when i go in and get my lunch there anyways...where else can i get a sausage and a drink for $1.50? In a year, just the gas savings alone pay off my membership.

If you drive a gas req 91 or 89 octane you'd be pretty foolish to fill anywhere else. They dont have 89, their price increase from 87 to 91 is less than a price jump from 87 to 89 anywhere else. So you're actually paying less for 91 than you would 89 anywhere else....
 
This is where I get my gas. The price difference is usually 3 to 4 cents lower than other stations. You have to pick your times to get gas then there is no line ups. The quality of their gas is consistent. I doubt they go for the lowest provider. I suspect they use their size as leverage to get the refine gas at a price point to undercut the competitors. Big retailers like walmart and target (when they arrive) flex their muscle to the wholesaler to gain market share. Costco is no different. The gas is probably also brought in from the states as they are a us retailer.
 
We don't have gas at the Costco down here. Do you have to buy three tanks worth every time?
 
It's funny that those people in the line always keep idling the car ... so whatever they save they most likely burn through .... people really have no sense of how to value their time.
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