Fuel Prices

How bout those fuel prices?

On average we calculate that OHM charged $0.35 per liter more than the regular road side pump price all summer. At one point this summer the difference was even higher. An absolutely astounding example of: 1. a crude attempt at price gouging and 2. poor management.

Competitors around the lake typically mark their gas up by approximately $0.20 per liter over road prices and more importantly adjust their prices with the regular pump price fluctuations. OHM likely cannot adjust their prices with pump price fluctuations because they sell so little gas that they are stuck with aging inventory and have no downward pricing flexibility. If they buy high, they are stuck with it, so they'll continue to stick it to us. If they buy low, they'll stick it to us anyway. Heads OHM management attempts to gouge us, tails OHM management attempts to gouge us.

What's entirely lost on the OHM management is competitors close by sell gas for far less than they do and we simply buy all of our fuel elsewhere. OHM management's fuel pricing policies, like much of their other management policies and procedures, are amateurish and laughable when compared to professionally and competently operated marinas.

One question for OHM management: Why would you consistently price your gas above your competitors prices at other marinas on the lake?

Any boater who is travelling in either direction, East, West, or South, will simply buy the bulk of their fuel at the competitors.

Speaking with the students who man the gas dock, they've indicated that gas sales have slowed to a trickle over the past few years as OHM has consistently priced much higher than other marinas in the vicinity. Would it not make more sense to price the gas in line with competitors or, here is an idea: BELOW competitors, and thereby sell more volume with less profit per liter but flowing more segmented profits to the marina? More gas turn over would also give OHM pricing flexibility during the inevitable swings in gas prices over the summer.

These are simple business concepts that are universally accepted in the business of retailing fuel in a competitive landscape. They should be implicit to anyone having the most rudimentary of business education or experience.

Lower gas prices than competitors would attract boaters from nearby marinas, who would buy gas, ice, and additional services, if they offered them. These boaters who come for the lower priced gas could potentially be impressed with OHM and move their boats to the marina, filling up the numerous empty slips creating more profits enabling OHM to provide better service.

Better pricing than the competition enabling more throughput, causing more profits, enabling a higher degree of customer service and satisfaction. What a concept. Too bad its not likely to ever become a reality under current OHM management.