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> hordes of price sensitive customers will have no problem passing up your "nice" gas station for the one that's consistently 5 cents cheaper

It's not obvious that these measures would boost the price. An owner might accept lower margins for scale. Or they may cut costs that don't matter, but which everyone dogmatically incurs, to incur the ones that do.

An in any case, segmentation is a thing. Targeting premium customers is a profitable strategy. It's also a virtuous cycle, since each premium customer gives you resources to expand your lead while depriving your competitors of their business (e.g. for upsold services).




> An in any case, segmentation is a thing.

Which is apparently why the engineer owns both discount (Arco) and premium (Shell) stations.




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