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Amazon.com Inc. Message Board

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  • do.john67 do.john67 Oct 26, 2011 9:31 AM Flag

    Amazon Tablet

    Gas stations like WAWA sell gas on the cheap and may not make any profit on the gas that they sell. But, as the WAWA brand maintains the reputation as having the lowest gas price and a large variety of snacks and drinks in its covenience store, I tend to fill up there 5 times as much as any other gas station. Over time, they get return business, and customers realize that their cars run fine on the gas, and notice that the snacks are fresh, coffee is good, and plenty of drinks for the kids to choose from. As the number of Wawa customers grows, they build more stations, with larger convenience stores, and offer more snacks, some with higher margins, and they find themselves eventually making money on the coffee, snacks and bottled water that they sell. They may even sell gas at a loss, but with a huge customer base, can make up the losses with the conveniece store. That's how it works. Same with Amazon.

 
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