ZEL - Z Energy.

[777]

Most people that buy at New World have a Flybuys card which allows 6c off per litre so the discount coupon is of no extra value.

[Bjauck]

If you offer your product to the public - all retail customers should have to be able to buy your product for the same (cheapest) price. Discounts should be available to all. Otherwise the business should be card members only.

[Beagle]

If you offer your product to the public - all retail customers should have to be able to buy your product for the same (cheapest) price. Discounts should be available to all. Otherwise the business should be card members only.

Okay let me help you with the maths. If one uses that Cardlink account for business that I posted a link for above above they get 10 cpl off in Auckland as a temporary incentive that reduces to 8 cpl off after six months. You have to have a business to qualify to get that. If one is a farmer and has a farmlands card they get 12 cpl off at Z as a rebate credit to their farmlands card. RDI have a similar scheme through Mobil that gives 11cpl off. Sounds great, right ? but it helps if you have a farm and an account with one of them and actually its not as great as it sounds.

By comparison Z has their regular 6 cpl off with fly buys card for every man and his dog which gives fly buy's points and if you pay with your credit card and a decent card scheme like many banks have such as 1 airpoints dollar for every $100 spent that's another 1% discount (2.2 cpl) plus up to 55 days interest free. Total deal including fly buys points is probably worth 9-10 cpl but if you wait until Z has their 10 cpl discount days your total discount is probably in the vicinity of 13-14 cpl ( depends what value you put on the fly buy's points accrual scheme) Worth noting that 73% of motorists by volume of fuel sold are waiting for the big discount days and doing better than the regular business fleet discount deals !

Up until recently as I have previously been using Mobil 98 in my former car, (Z does not sell 98 octane fuel) the total value of the discount including up front 10 cpl off, (I only ever fill up on 10 cent discount days), tail end smiles rewards ($10 for every 333 liters of 98 Octane, worth 3 cpl) and air points dollars paying by credit card, worth about 2.4 cpl = 15.4 cents per liter off plus up to 55 days interest free to pay the account on my credit card. Compare that to the farmlands, RDI or Fleetcard deal and now tell me retail customers can't get the same or better deals Surely you don't need to be an accountant to work out that if you add up the value of all the retail incentives including credit card reward schemes and only buy fuel when its on a 10 cents per liter off day, the value of the total discount is quite significant. (I wish the government would have days where they discounted their tax take by 15.4 cents per liter !)

Now I have a car that uses regular 91 Octane fuel and a Z station that's pretty handy and am a Z shareholder I might make the change to Z, (concierge service might be nice for a change too).

Of course if one was Hertz or Avis and buying millions of liters of fuel each year they're probably getting a bit more than 15 cents per liter off but why shouldn't they ?

[winner69]

Z safety record pretty abysmal ....and much worse than last year with increased LTIs, LWDs etc

Z were always proud of their SH&E record .....company culture not as good as previous / maybe a sign of management losing the plot ...who knows

[Bjauck]

Thanks Beagle for your detailed reply. I think it affirms my opinion that retail consumer protection reform is needed to take into the current jungle-like retail environment. I think that if businesses want to use loyalty cards, which provide discounts, then they should not be able to be open to the public. They should become private businesses only open to their loyalty card holders.

Otherwise all retail customers using the same payment method should pay the same price for the same product, whether or not they own or use the right loyalty card. I think that should be at the heart of a business, which has a licence to trade with the public. I understand many people have come to expect that many (especially) big ticket item retailers are increasingly open to “bargaining” but I prefer transaparency and consistency. I think we may have to agree to disagree.

[Jay]

/*[QUOTE=Beagle;736961
Of course if one was Hertz or Avis and buying millions of liters of fuel each year they're probably getting a bit more than 15 cents per liter off but why shouldn't they ?[/QUOTE]*/

However, the rental car company charges you an additional 10c or so per litre than the current price if you do not fill up before returning a vehicle and bet a lot don't easier just to drop off the car. !

[bull....]

this volatilty be crushing them oil down 26% in a little over a mth , nz dollar up a few cents as well . petrol price hasnt nearly dropped enough to reflect this massive fall.

[Beagle]

this volatilty be crushing them oil down 26% in a little over a mth , nz dollar up a few cents as well . petrol price hasnt nearly dropped enough to reflect this massive fall.

So their margins must be better. High oil prices and low Kiwi was hurting them so I am not sure how you arrive at your theory that the reversal of the pain will hurt them...really I find your post most implausible. Bull getting carried away with bearish tendencies "just for a change"

[bull....]

So their margins must be better. High oil prices and low Kiwi was hurting them so I am not sure how you arrive at your theory that the reversal of the pain will hurt them...really I find your post most implausible. Bull getting carried away with bearish tendencies "just for a change"

dont believe there spin , if you buy oil at 70 and it now 55 your losing

[Beagle]

dont believe there spin , if you buy oil at 70 and it now 55 your losing

Your post displays a complete lack of understanding of the oil industry and how they measure their profits. Their primary profit measurement basis is replacement cost. I don't have the time to explain it to you so I would suggest if you want to tool-up and understand this company better you start with their recent half year presentation available on the NZX website.