106 replies to this topic

[P.Schilling]

they may choose to do that, but start a gas war?? yeah right not going to happen, that will never happen. If anything Costco might make things worse if they run like that. Essentially every gas station in the region looks at how many liters are selling, if like last summer costco comes in and people get soo emotional and buy like mad from costco, that could tip of a price spike seeing as its a temporary spike in demand.

sorry to disappoint but Vander Kirk or whatever taught the big guys a lesson, and they learnt how to crush him. which is why shell now owns payless,

but in the end i deny that prices will start falling because of costco, anyone who doubts me should call pat faffard, erik gault or ron heal and ask them why one of the chains with the largest market share in the city is afraid of the words "gas war".

[Mike K.]

I believe distributors will not deliver gas to independent stations unless they agree to match the price of branded stations. I don't know how much pull Costco has, but their station might be bound by the same restrictions.

[VicHockeyFan]

I believe distributors will not deliver gas to independent stations unless they agree to match the price of branded stations. I don't know how much pull Costco has, but their station might be bound by the same restrictions.

In practice, that may be the case, but if you asked them to do that, that'd be illegal.

[concorde]

I met with some Costco executives this week and this is what they told me.

They hire a full time employee and his/her only responsibility is to drive around Victoria looking for the cheapest gas prices. Costco will then set their price at 5 to 10 cents a litre below the lowest price they find within a 20 mile radius.

So, as I said in my first post, expect gas prices to start falling in the CRD!!!!!!!!!!

[mat]

I met with some Costco executives this week and this is what they told me.

They hire a full time employee and his/her only responsibility is to drive around Victoria looking for the cheapest gas prices. Costco will then set their price at 5 to 10 cents a litre below the lowest price they find within a 20 mile radius.

So, as I said in my first post, expect gas prices to start falling in the CRD!!!!!!!!!!

Don't quite get that - all mainstream gas bars adjust prices using that auto phone system from the main distributor in Vancouver. So once say a Petro Canada station adjusts a price - you know most of the rest will as well. Gas Buddy is also a timely source.

The CRD region has the highest average gas prices in Canada, the only reason IMHO is we do not have a social action group that will pressure Government to investigate collusion.

[gumgum]

^Not sure what you don't get exactly, Mat. If Costco can still profit then why wouldn't they want to set a president? They probably know others will follow eventually, but the said president will certainly give them an early boost.

[mat]

^Not sure what you don't get exactly, Mat. If Costco can still profit then why wouldn't they want to set a president? They probably know others will follow eventually, but the said president will certainly give them an early boost.

Maybe I am out of tune here - my understanding from Concordes post was that Costco has been evaluating and undercutting average CRD gas prices for some time.

They hire a full time employee and his/her only responsibility is to drive around Victoria looking for the cheapest gas prices. Costco will then set their price at 5 to 10 cents a litre below the lowest price they find within a 20 mile radius.

The inference being that would force other stations to follow along in a competitive cost war. If that is the case then they may have attracted some customers to their gas bar, but it has had no affect on prices in the region.

However, if this is a new initiative (and I am on the costco email list - no notice yet), then it might be interesting. Although I expect the result to be km long line ups out of their parking lot. A single gas station will do little to affect regional pricing. The COOP has been operating for years with a guaranteed cents below par price (with membership).

I still do not understand the rationale of hiring an employee to drive around checking competitors pricing. There are plenty of other aggregate data sources. If this is a precedent, could someone explain how?

[Holden West]

I still do not understand the rationale of hiring an employee to drive around checking competitors pricing. There are plenty of other aggregate data sources. If this is a precedent, could someone explain how?

I don't get that either. It sounds like the easiest job in the history of mankind. I mean, you don't even need to get off the couch. Just have that tape of traffic noise prepped in the stereo for whenever the phone rings. "Oh, yeah boss--still 107.9, same as yesterday".

[LJ]

^Not sure what you don't get exactly, Mat. If Costco can still profit then why wouldn't they want to set a president? They probably know others will follow eventually, but the said president will certainly give them an early boost.

I don't think you can set presidents - they have to be elected.


When is the place supposed to open?

[mat]

I don't think you can set presidents - they have to be elected.


When is the place supposed to open?

A Hah! IS this then a NEW station? Yet to open? Be nice if that info was posted by those in the know beforehand - like when the thread started!

[gumgum]

Yeah, yeah, yeah. I suck.

[Mike K.]

It is a new station being built on Costco's parking lot.

[Bob Fugger]

I don't get that either. It sounds like the easiest job in the history of mankind. I mean, you don't even need to get off the couch. Just have that tape of traffic noise prepped in the stereo for whenever the phone rings. "Oh, yeah boss--still 107.9, same as yesterday".

Actually, the easiest job in the history of mankind is the Route Checker position with the CRD. Essentially, they drive around 4 hours per night, checking to see if the Contractor (IPI) missed collecting any Blue Boxes. Oh, and they have to fax a list to IPI.

God I miss that job...

[concorde]

I believe the station will open June 11th

[LJ]

A Hah! IS this then a NEW station? Yet to open? Be nice if that info was posted by those in the know beforehand - like when the thread started!

Ummmm - here is the first post in the thread.

If you haven't heard, Costco will be starting construction of a new members only gas station in Langford hopefully this month. It should open by the end of May.

[mat]

Ummmm - here is the first post in the thread.

Truly apologetic - as a Mod I am duly sullied. Thanks for pointing it out.

[Caramia]

/thwap

[bruinz]

CostCo gas price 98.9/L while all others are 106.9 as of June 12/08

[VicHockeyFan]

Drivers weary of high gasoline prices find relief at opening of Costco station

Times Colonist - June 12, 2009

Drivers tired of paying sky-high gas prices saw a glimmer of relief yesterday, thanks to the opening of a new gas station in Langford.

The Costco gas station, which opened yesterday next to the Costco store on McCallum Road, was offering a fill-up at prices as

low as 98.9 cents a litre yesterday afternoon.

There is a catch, however -- only Costco members are allowed to use the station.

Memberships at the store start at $55 a year.

A Costco employee would not comment on the gas price, although she did say she had seen it fluctuate throughout the day.

She also confirmed that Costco's prices were "significantly lower" than those at other stations throughout the region.

According to victoriagasprices.com, a website that tracks prices at gas stations in the Victoria area, the average price of gas in the region yesterday was $1.065 per litre.

There are 77 Costco stores in Canada, and 13 across B.C.
© Copyright © The Victoria Times Colonist

[Mike K.]

That's 8 cents below other stations. I'll take that.