Marketing Lesson

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Yesterday I bought gas for $3.89 a gallon. The posted price was $3.99 and average for the area is just over $4.00. How did I get ten cents a gallon off? I bought groceries AND gas at Kroger.

Kroger has a "Plus Card" that you scan whenever you buy gas or groceries. It gives you a discount price on many grocery items, and once you spend a certain amount on groceries, you get a certain amount off the gas price. I think the minimum is 3 cents, then it goes to 10 cents and then 15 cents.

Do you think I go out of my way to buy groceries at Kroger? Of course because if I don't, I miss out on savings on gas. Do you think I go out of my way to buy gas at Kroger? Of course - same reason.

Kroger is using gas as a loss-leader and using it to lock their customers in. I don't think Kroger is such a great store really, I might or might not shop there otherwise, but I can't ignore the savings on gas. And by the line I see at the pumps their plan is working. I admire their marketing savvy and I will happily let them lock me in as long as they're saving me money.