Sun 6 May 2007
With gas at about $3.00, Costco has become more and more of a popular source. In a way, this doesn’t make a ton of sense, because whether gas is at $1 or $3/gallon at the normal stations, you’re going to be saving about the same amount per gallon at Costco, about $.10/gallon. Nevertheless, the lines get longer at Costco when gas spikes, as it did this weekend. I drove by to get gas myself, and with one look at these lines, I decided my time was worth more than to wait and save $.10 per gallon:

But then I realized that I needed proof, and I needed to know what my effective wage would be (in gasoline savings) for sitting in line.
So I started in line around the bend, about two cars away from being in the main line area which you can see above, at about 12:04 on a Saturday afternoon, which I’m guessing is one of the more crazy times of the week. The line moved considerably faster than I expected.
I also chose to get in a line that led to the left side of the pump. If you’ve ever been to Costco, this is the faster less popular line since you can only drive in one way, and most people have their tank on the left. I guess some people don’t realize that the pumps are equipped to reach quite easily and safely to either side of your car. I estimate that you cut out about 1/3 of the wait time on that side.

So, here are the stats:
Started in line: 12:04/ Started Pumping: 12:14
Gas price at Costco: $2.95 9/10/ Nearest Competitor: $3.05 9/10
Savings per gallon: $.10
Honda Accord Gas Tank: +/- 15 gallons
Total Savings: $1.50
Effective wage (in savings): $1.50 divided by 10 min. in line = $.15 in savings per minute, or +/- $9 an hour.
So if you need about 15 gallons, and you value your time at about $9 an hour or less on a Saturday afternoon, then its worth it. I personally don’t think its worth it, and I did everything possible to speed up the line process. I’d rather go to Chevron (with Techron) and spend the extra 1.50, avoiding the stress of the line and getting on with my day. However, if you need 20 gallons, and you’re also filling up some cans in the back of your truck, it might be more worth it.
May 7th, 2007 at 7:14 am
I was thinking the same thing the other day. Do I want to wait in line, or even go out of my way to drive to costco to save $1.50? Heck no.
I like the “(with techron)” part.
There is a typo at the top where you say you save $10/gallon. I WOULD drive to costco if that were the case!
May 7th, 2007 at 3:18 pm
[…] via Cameron’s Effective Wage for Gas at Costco […]
May 7th, 2007 at 3:25 pm
thanks sam for catching that typo. I’d hate to be the one responsible for record costco membership sign-ups and millions of disappointed gas consumers (because that is about what my readership is)
May 8th, 2007 at 1:08 am
Texaco has Techron too now. Chevron’s exclusivity contract ran out a few months ago.
May 17th, 2007 at 7:16 pm
I mentioned this post to my wife a few days ago. When she went to get gas, she decided against Costco as a direct result of your argument, and because another gas station was more convenient. Consider it another victory for logical economics applied to everyday life.
Who’s up for another Gas-Out day?
February 13th, 2008 at 4:47 am
water sluts
water sluts
May 22nd, 2008 at 3:09 am
j23
J23 hehe