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Is there any meaning to station petrol discount ?

By SYF77 on 28 Sep 2011

Attached Image: petrol_discount.jpg

In Singapore, almost everyone likes discount. The sight of shopping centers packed with shoppers during the Great Singapore Sales is testimony to this statement. However, there are some places which perpetually offer discounts. This makes me wonder if the discounts are already factored into the pricing. Petrol station in Singapore is one such example.

As observed from the table above (extracted from petrolwatch.com.sg as of 14 Sep 11 9pm), most petrol stations are giving station discount of 5%, except for SPC, which is slightly more generous. My question to the petrol companies is why bothered to give station discount? Isnít it simpler to reduce the selling price by the station discount straight away at the pump? I believe it is also easier for accounting purpose for these oil companies, if they do so.

Giving perpetual discount makes the discount seemed rather insincere. Customers may feel that the price has already been jacked up to cater for the discount. Perhaps the oil companies can give a though over this suggestion.

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SYF77
Written by SYF77
I have been a car fanatic since 1989, when my father was changing our family car then to a Toyota Corolla 1.6 GL fitted with a Twin Cam 16 valve engine that was carburetor-fed, a big deal back in those days. The automobile technology and industry fascinates me and I hope to broadcast these interesting developments to everyone out there through this blog.



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Dwee Sep 28 2011 11:42 AM
Is very subjective. . As you mentioned. Singaporean likes discount. By not stating any discount , there is a tendency you may lose out to your competitors. No doubt the end price may be about the same as others , but certain pool people once saw some discount from a company, they will assume that is is a better catch... That's Singaporean....
Ghostrider Sep 28 2011 12:11 PM
Petrol pricing is rubbish in SG. All follow the leader and offer useless membership points...500-600 dollar worth of points (as you earn thru purchases) can't even top up half a tank of petrol. In Taiwan, petrol station stay competitive by offering lower price for some trade-off. Eg...special discount on certain days of the week...self service vs service pump price...and ulu location offering lower pump price to let the consumer choose.

In SG, its here is the price...take it or leave it. Dun like my offers...go elsewhere.
Photo
Mecontle Sep 28 2011 02:50 PM
very tiring job to find discount , why cant be more open
Ilmw Sep 28 2011 04:21 PM
An item at 50% discount, vs buy-two-get-one-free: any difference? Yes, there is. The latter will clear your stocks.

Petrol at $2/L, vs $2.1/L with 5% discount: any difference? Yes, there is. With the latter, petrol stations reserves the right to remove the discount. The discount is like a privilege, not a right for the customer.
Ilmw Sep 28 2011 04:22 PM
Correction: An item at 50% discount, vs buy-one-get-one-free: any difference? Yes, there is. The latter will clear your stocks.

Petrol at $2/L, vs $2.1/L with 5% discount: any difference? Yes, there is. With the latter, petrol stations reserves the right to remove the discount. The discount is like a privilege, not a right for the customer.
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