I was wondering if anyone knows if the franchisee loses out when you do a price lock on fuel considerably lower than the outlet you fill up with.
I often lock my fuel in 10-30c a ltr cheaper than my local 7/11 sells it for, the last few times I’ve noticed the operator seems genuinely put out by this, to the point where last week after fuel went up considerably he refused to accept the voucher. I called 7/11 and they refunded me the difference. I’m wondering if my discounts are coming out of franchisee’s pocket, surely $10 is nothing at the volume they’re selling. Or is the guy just being a jerk.
7/11 Fuel Price Lock, Who Bears The Cost?
Stewardo on 31/10/2017 - 16:32
Last edited 31/10/2017 - 18:23 by 1 other user
Last edited 31/10/2017 - 18:23 by 1 other user
Comments
Even so, in Australia we deserve cheaper fuel.
Have you been to NZ? it's bloody $2 a litre
Or is the guy just being a jerk.
this.
you pay for the fuel as you lock the price thats why you need to have credit in the app, its pretty much prepaid fuel for the locked price.
Exactly, the operator may be pissed off that you're not paying the expensive price but if it weren't for the fuel lock app you would have fill up earlier and it probably wouldn't have been at 7/11.
"Who Bears The Cost?"
employees based on wages scams
Yes, that is true. Many 7/11s hire people for illegally low wages.
The franchise is paid a FIXED rate, normally 1-2c litre, regardless of the price on the board.
Also the petrol sitting in the tank in the ground waiting to be sold, hasn't changed price, so if it was $1.20/l yesterday and now its $1.35l! So 7-11 just made a extra 15c/litre on it.
no its generally sold on consignment, no petrol station wants the risk of having 20000L of fuel sitting there and the price going down the next day, so they pay for the fuel when its sold, that's why the prices can change and the same fuel which was delivered is still there.
heres a definition for you….
Consignment stock is stock legally owned by one party, but held by another, meaning that the risk and rewards regarding to the said stock remains with the first party while the second party is responsible for distribution or retail operations.
yeah…. That was my point and 'The franchise is paid a FIXED rate, normally 1-2c litre" aka its sold on Consignment, they don't own it, they don't get the 'full amount' either ie $1.32/l, but 1-2c/litre of the final price the rest goes to someone else.
but sure whatever, you rock!
Ah that makes sense.
The guy obviously just has an attitude problem then, he may be getting underpaid or something.
There is one dodgy guy at a 7-11 near me. Has very poor customer service skills and has asked a few times where I got the lock from. It's none of their business, they are still making money so I don't see why they would have an issue with it.
I tell em im a truck driver lol
Solid. I'll use this if it comes up.
So looks like u guys still using mock location !!
I’m not. I research the price on the government site, then lock it when I’m working in the area.
I work at 7-11. The above comments are pretty accurate, the franchisee is paid 1.5% of the fuel volume sold. and when using the fuel app, 7-11 bears the cost of the savings made from filling up, the franchisee still gets paid the exact same.
If anyone sees this…
Is there always a balance on the account. Is there a way to use up all the funds in the account ? Just don't seem to like the fact that purchase is based on number of litres and not the total amount.
ThanksIs there always a balance on the account.
Yes - most people lock every week, etc so they're happy to leave the balance there.
Is there a way to use up all the funds in the account ?
It's just a gift card … but some slurpees, coffees, etc with the balance.
In addition to the comments above.
I was wondering if anyone knows if the franchisee loses out
If a franchisee was taking the hit on it, I doubt any of them would accept the coupon. If 7-eleven was re-imbursing the franchisee, the franchisee would game the system and jack up the price to maximize the re-imbursement. Hence, the comments about consignment selling make a lot of sense.
another interesting question is, who takes the free drinks/coffee/other snacks on app? I assume its the company and not the franchisee … I wonder is the franchisee's have started gaming it yet? Might explain why some stores are perpetually out of stock of free items on the app?
I think they barely make anything on selling fuel.