On what basis have Asda, Tesco, etc been able to compete with the big petrol companies?

Answer 1

Price competition, flooding the market, convenience (e.g. just outside a supermarket) and 'loss leadership' (selling products at a loss in order to gain larger market share - linked to price competition).

Answer 2

Most filling stations in the UK are privately owned and affiliated to a petrol company, the oil company provides the sineage, pumps, shop fronts etc. in return for the exclusive rights to sell their oil products on that forecourt. That means that each garage will be charged a different wholesale price for its petrol based upon the volume of sales. The large supermarkets have the advantage of being able to negotiate lower wholesale prices because they have central purchasing for the whole country. Effectively, this means that the more petrol a company sells the cheaper it can buy it.

Answer 3

the reason tesco asda j sainsbury can compete so well with petrol,is that they buy there petrol off the Rotterdam stock exchange .where petrol is bought and sold .it is cheap crap,what the normal petrol companies ignore.the thing about esso,shell ,texco,is that these companies add additives .to the fuel ,making it more efficient.the super markets buy the cheapest no additives,shorter life on your engine, that is what you are paying for.....

Answer 4

easiest way is incentives...e.g. loyalty card points... spend £50 , get 5p off a litre.

as for petrol stations a lot will break even or have very small margins..

if you notice when you go into a local petrol station, the price of sweets is higher..

so they break even on somethings, while inflate the price on other things due to convience etc.

Answer 5

they buy it cheap..er and manipulate their other sales at higher prices than normal but one thing is sure they are not losing out