Okay, CGriffith, you asked for it, here you go. Yes, you could save money by mixing yourself for the plus generally. Most places (myself included) just go ten cents up from regular unleaded in pricing. There isn't actually a 10 cent spread in cost though, so we make a bit more usually on the higher priced products. I sell Texaco fuel for now, who knows what I will be come middle of summer when my contract expires. Kind of looking at what I should do.
Here is the run down on fuel pricing, at least as it applies to my region. I generally take my wholesale and add 12 cents on the unleaded regular, and 10 cents for diesel. AHA, but wait, before I get skinned alive, let me explain it more fully. Half of my customers use credit cards. My fees on those generally run 2 to 3%. So at an average fuel cost of 1. 50 I lost about 5 cents worth of margin from half my customers. Also, I get a "drive-off" where somebody doesn't pay, frequently, which is usually upwards of 50 bucks. So if you figure I make 8 cents a gallon, it took 625 gallons just to break even for that drive off. So 937 dollars worth of fuel sales can be negated by one &^%$*&^. Then you figure in maintenance costs, handles, swivel fittings, receipt paper, all free air(fittings get stolen frequently), water, squeegees(also kiped like their going out of style), etc. etc. Basically it boils down to me actually making about 2 or 3 cents a gallon. I am not including labor, insurance, etc. because I have a c-store also, but if it was just gas... . well, you can see it wouldn't work. What this means is that if I could raise my price 3 cents, I could double my profits on fuel. Or if I don't get those extra 3 cents, it really hurts.
Okay, costs. My actual fuel cost for unleaded at this moment is 1. 819. Premium is 1. 969. Diesel is 1. 889. Diesel went up 8 cents on the 6th, and 7 cents today.
Cash flow. How most branded, non oil company owned stations work, is all my credit card sales, including in-store go into my distributor's account, which then gets credited toward my fuel purchases. I still have to pay cash for the remainder when it gets delivered. So before I can buy that high-priced fuel, I have to have the money in the bank. So generally I try to take price increases when they happen, unless I have a LOT of fuel in the ground. Reason? Well, invarably, the first day the price drops, some station owner in town is out of fuel, and is able to drop his price immediately, so in order to sell fuel, I am forced to follow. So I try to make a little extra as it goes up, and hope it comes down slow. Hah, good luck.
In order to help defray my customer's costs and put some more money in my account, I offer a 3 cent/gallon discount for cash. That way I make more than if they used a credit card, and they pay less.
Sorry for the long post, feel free to ask any other questions you may have. jc