The company opened its first store outside of Texas in Alabama. However, within the first few weeks of being officially open, they were sued. The lawsuit was filed because Buc-ee’s gas prices in Alabama were too low. Alabama has a law passed in 1984 that prohibits large retailers from selling gasoline to the public for less than their purchase cost. This law makes sense for typical gas stations, but Buc-ee’s operates differently.
The vast majority of Buc-ee’s profits come from in-store sales, so a smart strategy for them is to lower the cost of gas to attract more customers to their property. This, in turn, increases foot traffic in the store, resulting in more sales of their products like beaver nuggets and Buc-ee’s merchandise. While other large gas stations may employ similar tactics, smaller local gas stations can be significantly hurt by this strategy.
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