http://www.inelegantinvestor.com/2006/09/08/warehouse-club-membership-fees-and-why-you-should-buy-bjs-wholesale/ Something of Value Fri, 23 Jul 2010 15:53:28 +0000 hourly 1 http://wordpress.org/?v=3.0.1 http://www.inelegantinvestor.com/2006/09/08/warehouse-club-membership-fees-and-why-you-should-buy-bjs-wholesale/comment-page-1/#comment-8 investor Wed, 20 Sep 2006 08:07:04 +0000 http://www.inelegantinvestor.com/2006/09/08/warehouse-club-membership-fees-and-why-you-should-buy-bjs-wholesale/#comment-8 Sorry for not being clearer. I don't think there's much question that lower gas prices means lower revenues and lower same-store sales, but I'll admit that my claim of lower earnings is more tenuous. I think that in addition to price per gallon dropping, that the volume of gas sold will drop as the value proposition is less stark as gas prices drop. That is, when I see my local gas station selling gas more cheaply than BJ's was last time I was there, I'm more willing to fill up on go out of my way. When prices are dropping people feel that gas is a bargain everywhere. Do I have any concrete evidence to document this? No. I admit that it's tenuous; were I writing this piece again, I would have left it out. Sorry for not being clearer. I don’t think there’s much question that lower gas prices means lower revenues and lower same-store sales, but I’ll admit that my claim of lower earnings is more tenuous. I think that in addition to price per gallon dropping, that the volume of gas sold will drop as the value proposition is less stark as gas prices drop. That is, when I see my local gas station selling gas more cheaply than BJ’s was last time I was there, I’m more willing to fill up on go out of my way. When prices are dropping people feel that gas is a bargain everywhere. Do I have any concrete evidence to document this? No. I admit that it’s tenuous; were I writing this piece again, I would have left it out.

]]> http://www.inelegantinvestor.com/2006/09/08/warehouse-club-membership-fees-and-why-you-should-buy-bjs-wholesale/comment-page-1/#comment-7 Mark Sat, 16 Sep 2006 23:20:47 +0000 http://www.inelegantinvestor.com/2006/09/08/warehouse-club-membership-fees-and-why-you-should-buy-bjs-wholesale/#comment-7 How would drops is gas prices result in lower earnings? These clubs buy gas on the spot market (daily), which means their costs are lowered each day as the price delines. Money is made when the local gas station is charging $2.50 a gallon but the current spot price is only $2.25. Thus the profits go to the independant sellers (BJ, COST). How would drops is gas prices result in lower earnings? These clubs buy gas on the spot market (daily), which means their costs are lowered each day as the price delines. Money is made when the local gas station is charging $2.50 a gallon but the current spot price is only $2.25. Thus the profits go to the independant sellers (BJ, COST).

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