AAFES Pocketing 90 Cents PER GALLON in Europe

[SCEagle]

Check out the Front Page article of the 11 October 2006 edition of Stars and Stripes.  They've done some digging, and AAFES is grossing 90 cents per gallon of gas they sell.  (Note: They still have to pay expenses, but as the article shows, that's still a helluva lot of profit.)

[Stop_Your_Crying]

AAFES only grosses 69 cents, the other 21 cents goes to MWR. 70 cents of each operating dollar for MWR comes from AAFES profits. The 90 cents was based on Super Plus only prices, this is the highest price gas and based only on last month record high price. However, any profits would be lower for regular and super unleaded. Then of course no one going to care what I just said and I look forward to hearing the long winded B.S. to follow my reply. Always like to hear from the Shit house lawyers......LOL

[SCEagle]

Oops.  There will be an immediate retraction.  And, in other news, AAFES is going to start lowering the price of gas, to reflect both it's "Tax-Free" motto and "Same Prices Everywhere" slogan.

[BooBoo10]

Well, we sure are not making  kind of money here in the USA.  I bet 20 days out of 30 in Sept.  We sold our fuel for less then what we were paying for it..   

[K2]

Here is a link to said article for those that are google challenged.

http://www.estripes.com/article.asp?section=104&article=40669

The response Smith got from AAFES proved his suspicions half right: AAFES is making more off gas it sells in Europe. AAFES sold roughly 17.6 million more gallons of gas in the U.S. than it sold in Europe in 2005, but because of the huge difference in gross profits, the agency made more than four times as much in gross profit off its gas sales in Europe.

That is what got the "WOW" factor for me... They sold 18 million gallons less OCONS and still managed to make 4 times as much!, and from what I remember the 2005 prices were not all that bad over here.  Can't wait to see this years numbers.

[Stop_Your_Crying]

Just heard today, there is a Congressional investigation underway! Will keep you posted if I hear more!

[TheFreud]

I am so glad to hear that SOMEONE is on top of this bullshit!
If you can find anything with transcripts of the investigations... post post post!

[TheFreud]

Also might want to note-
For November- Italian Gas is staying the same- but it is dropping in the Pacific regions.
?!
http://www.estripes.com/article.asp?section=104&article=40110&archive=trueEuropean Story
http://www.estripes.com/article.asp?section=104&article=40114&archive=truePacific Story

[gabe0463]

This is absolutely absurd - stateside service stations usually only make $0.01 to $0.03 cents per gallon....thanks AAFES!

Besides...ITS NOT PART OF MY BENEFITS - I DONT USE 95% OF MWR MONEY BECAUSE ITS ALWAYS SPENT ON SOMETHING GAY.

[Moose]

how messed up is AAFES when they have to have congressional hearings to sort out how jacked up they are.... and I as I'm sure other would rather have gas cost 60 cents less a gallon than have millions of dollars going into MWR that nobody uses.... but wait I can rent a piece of crap fishing pole for a dollar... sweet thats so much better than a tank of gas costing 10 bucks less....

[Disgruntled]

This is absolutely absurd - stateside service stations usually only make $0.01 to $0.03 cents per gallon....thanks AAFES!

Besides...ITS NOT PART OF MY BENEFITS - I DONT USE 95% OF MWR MONEY BECAUSE ITS ALWAYS SPENT ON SOMETHING GAY.

You know why gas is so ridiculous stateside? AAFES makes each exchange contract locally for their gas. So, since they only have one or two stations on bases that require an act of God to get on, the negotiated prices are MUCH higher than for the Wal-Mart's right outside the gates which have maybe 20 or 30 stations in the same areas.

I heard a rumor that AAFES wants to contract out the Car Care Centers and keep the gas parts for itself. How bass-ackwards! Contract out the gas with the cheapest local station (or even a national chain) and leave the inside store alone as that is where AAFES actually makes money!

[Stop_Your_Crying]

God has nothing to do of you getting on a military post, that would be a act of Congress....LOL

Actually the Car Care Centers do not make money. They were originally concession run shops to about 10 plus years ago, maybe a little longer. AAFES then took them over, was a request by the military leaders back then. At this time, there has been no discussion of changing back...as stated "RUMOR". However, to make a point, it would be in AAFES best interest to go concession. Why you ask, concession incur all cost and AAFES just takes a 15-25% cut of the take. Kind of like a landlord.

The gas station, are required to match the prices stateside or close to it, by those stations located on the economy. Mainly found outside your military post/base gate. Now as many of you know, stateside price go up and down almost daily at times.

[Disgruntled]

They make money with repairs and maintenance, at least at ours. And since I have been around AAFES long enough to know and even worked in a CCC more than fifteen years ago, I can tell you it was NOT a concession then.

I understand Firestone is sniffing around, but wants to fire all the AAFES people and use their own. That would put a lot of my friends out on the street because they are mechanics. It would also raise the prices of tires, etc. to the point that sales would drop even more. Not to mention, Firestone doesn't want to play with the gas part, so AAFES would still be stuck with the part that screws the bottom line.

Oh, BTW, God can't even get on our base without an escort and three letters of reference because he isn't a government employee. LOL yourself.

[Stop_Your_Crying]

I would love Firestone to take over the Care Care Centers. This sounds like a stateside thing. In Germany in my area, it was a concession was not sure the time frame, so this is where I got that from, then again, each area AAFES operates differently.

[BooBoo10]

Yes, rumor has it....they are going to add on a 3 or 4 bay garage to one of our shoppettes.  And contract it out to Firestone.