Why don’t all Caltex service stations sell fuel at the same price?
Service stations drive sales by pricing their fuel to match or beat their local competition. Generally their competitors are other service stations in that town or neighbourhood. As such prices at service stations are generally influenced by the number of potential customers and their likely sales volumes as well as the number of service stations in their immediate area and their prices. For example, service stations on major traffic routes can increase sales substantially by reducing their prices by a relatively small amount – but only until competitors see what they are doing and drop their prices also. Service stations with less passing traffic would not find discounting as successful a way to increase sales. Caltex sets the price at only about 170 service stations in its branded network. Most branded sites are franchised or operated by independent retailers. For example Caltex Woolworths and Caltex Safeway service stations are operated by Woolworths which independently decide its p
Related Questions
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- Why don’t all Caltex service stations sell fuel at the same price?
