Upside of high gas prices

I’m now declining some more marginal shops due to the price of gas (the cause of which I’m not looking to debate here). That being said, given how common gas price photos are on social media right now, I sure didn’t feel awkward taking my photos at the pump last night!

Edited 1 time(s). Last edit at 03/12/2022 04:06AM by NinS.

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I keep thinking every day how thankful I am that this job offer came at just this time. I have to travel so very far (the absolute nearest shop to me is 45 miles away; the average is 100 miles away, and my routes often take me hundreds of miles per day) that the rising cost of gas makes it nearly impossible to build a profitable route.
The people making the decisions about how much we are paid never buy gas, groceries or anything else. I would like to know their secret.
Hell, people gladly pay over $5.00 a gallon for bottled water, something I drink from the tap. And don't get started figuring out what Starbucks costs per gallon.
Huh?
YOU are the only person who decides how much you will be paid. Don't take the job if you don't like the pay! But fyi MANY MANY MANY MSC & clients are middle class business owners.


@tstewart3 wrote:

The people making the decisions about how much we are paid never buy gas, groceries or anything else. I would like to know their secret.
@tstewart3 wrote:

The people making the decisions about how much we are paid never buy gas, groceries or anything else. I would like to know their secret.

I think they know or have an idea. They pay the bills or have have a financial person to keep them informed. IMO they are more in tune with good profit margins. Shops that require a purchase is revenue back to the client. Even if the client pays the MS for the shopper reimbursement, the client is still turning a profit. A clearance item or use of a coupon may decrease the profit, but generally the cost is less than what a shopper paid. The one big exception to that may be the $4.99 chickens at Costco.
Yes, especially so for the "Blue" shops. Those shop routes that I have done previously that would have at least filled my tank with some extra going into a 5 gallon gas can, are now not justifiable to me. That's even with the additional bonused amounts.
For the "Yellow" sites, maybe worth looking at.
Currently, I'm looking at some "Blue" shops right now that are miles away distant. They are really nicely bonused. In the past I would have snapped them up.
Now, those bonused amounts are eaten up in gas costs.
Maybe the IPSOS schedulers are bound by their company's dictates, maybe not.
Whatever. In my opinion, they are being cheap and tone deaf to what is happening out there.
@French Farmer wrote:

....Currently, I'm looking at some "Blue" shops right now that are miles away distant. They are really nicely bonused....Maybe the IPSOS schedulers are bound by their company's dictates, maybe not.
Whatever. In my opinion, they are being cheap and tone deaf to what is happening out there.

Careful with those. I took two, what I believe you are calling "Blue" shops late last month. I only took them because they were very nicely bonused and I had already done both of them for only $25 (total) less than what they were now bonused to.

I set up a nice route around them with convenience stores and ATV shops along the way to and from them.

The day before I was starting my route, IPSOS cancelled both of the highly bonused "Blue" shops that I had picked up the other shops around. This made the route impossible to even break even on if I completed it.
Zek, I always thought I understood the math of this but now I am wondering exactly how the client makes a profit on the item you purchase for a shop that the client then reimburses you for? Basically in my math the client not only does not end up with any net profit for selling you , the shopper, that item but they also may have some small per item costs involved in ordering , stocking etc of the item not to mention the cost of the mystery shop program. .

@Zek wrote:

@tstewart3 wrote:

The people making the decisions about how much we are paid never buy gas, groceries or anything else. I would like to know their secret.

I think they know or have an idea. They pay the bills or have have a financial person to keep them informed. IMO they are more in tune with good profit margins. Shops that require a purchase is revenue back to the client. Even if the client pays the MS for the shopper reimbursement, the client is still turning a profit. A clearance item or use of a coupon may decrease the profit, but generally the cost is less than what a shopper paid. The one big exception to that may be the $4.99 chickens at Costco.
@sandyf wrote:

Zek, I always thought I understood the math of this but now I am wondering exactly how the client makes a profit on the item you purchase for a shop that the client then reimburses you for? Basically in my math the client not only does not end up with any net profit for selling you , the shopper, that item but they also may have some small per item costs involved in ordering , stocking etc of the item not to mention the cost of the mystery shop program.

I don't know the numbers, of course. But retail prices are at least double (or more) of wholesale prices. We don't know what the end client pays the MSC per shop, but if I buy a $60 pair of jeans or shoes at a retail chain that is the end client, and the MSC reimburses me $20 and, in turn, is reimbursed that $20 by their client, there's at least $10 in gross profit. If the retail chain owns the factory that produces the jeans, there's probably a *whopping* profit in there somewhere. Even if the end client beaks even on the sale of that one pair of jeans, they're getting back their money in revenue (not necessarily profit) and gaining valuable (we hope!) insight into the customer experience.

This seems to make the most sense to me in terms of reimbursement shops. It's probably cheaper for a company to do that than to pay a fee.

I learn something new every day, but not everyday!
I've learned to never trust spell-check or my phone's auto-fill feature.
The below is merely my opinion.

The shopping industry, as a whole, is one that has not kept step with the world around us. As an example, until recently, when a large bottom paying MSC either surrendered or lost their Kroger's account, they were paying the same $5+$14 from 2006 or earlier. They were successful with that business practice, due to many shoppers acceptance. As was previously noted, it is simply a matter of supply and demand.
It's definitely time to up the gas reimbursement. Otherwise, these shops are not as desirable anymore. I realize they have contracts set up, but sheesh, come on ... how much driving do they think we will do @ $5+ per gallon of gas?

*****************************************************************************
The more I learn about people...the more I like my dog..

Mark Twain
Okay, then you and Zek are talking about the so called "coupon" shops. I did not realize this is what Zek was speaking about as I have never taken a shop where only $20 of a $60 purchase was reimbursed. In my market there are very few of those and I read here whenever the subject comes up that most shoppers do not take these shops. I would think, based on the companies I work for these types of shops are a small percentage of shops.

@BirdyC wrote:

@sandyf wrote:

Zek, I always thought I understood the math of this but now I am wondering exactly how the client makes a profit on the item you purchase for a shop that the client then reimburses you for? Basically in my math the client not only does not end up with any net profit for selling you , the shopper, that item but they also may have some small per item costs involved in ordering , stocking etc of the item not to mention the cost of the mystery shop program.

I don't know the numbers, of course. But retail prices are at least double (or more) of wholesale prices. We don't know what the end client pays the MSC per shop, but if I buy a $60 pair of jeans or shoes at a retail chain that is the end client, and the MSC reimburses me $20 and, in turn, is reimbursed that $20 by their client, there's at least $10 in gross profit. If the retail chain owns the factory that produces the jeans, there's probably a *whopping* profit in there somewhere. Even if the end client beaks even on the sale of that one pair of jeans, they're getting back their money in revenue (not necessarily profit) and gaining valuable (we hope!) insight into the customer experience.

This seems to make the most sense to me in terms of reimbursement shops. It's probably cheaper for a company to do that than to pay a fee.
@sandyf wrote:

Okay, then you and Zek are talking about the so called "coupon" shops. I did not realize this is what Zek was speaking about as I have never taken a shop where only $20 of a $60 purchase was reimbursed. In my market there are very few of those and I read here whenever the subject comes up that most shoppers do not take these shops. I would think, based on the companies I work for these types of shops are a small percentage of shops.
@sandyf wrote:


I'm not totally sure that's what Zek was talking about, but it seems to me that those shops fall into the category of reimbursement shops. I did one where there was a coupon plus a reimbursement up to a certain amount. The required purchase amount exceeded both the coupon amount and the reimbursement, so there was money going back to the end client, even if not much.

Even on a straight reimbursement/no fee shop, it seems that shoppers almost always end up out of pocket some. Granted, it doesn't seem like there's any profit in it in most cases, but I'm thinking it can't be a total loss to the end client. Or maybe they just figure the value of the feedback makes up for any lost $$?

I learn something new every day, but not everyday!
I've learned to never trust spell-check or my phone's auto-fill feature.
Maybe in addition to bonus...we can ask for "gas reimbursement" on shops/route. I would have a problem proving it as I have a Tesla and solar panels, but it's still wear/tear on my batteries and tires. I'm guessing if the gas prices don't change anytime soon, I would expect less locations to be shopped causing MSC to address the issue. However, maybe people will become MORE desperate and take anything to help their income (even if their hourly rate/time/effort is not being fairly compensated)
I will only complete a single assignment where the reimbursement does not cover the REQUIRED purchase(s). The shop will then be placed on my 10 feet list. I am aware the day will probably never dawn when all shoppers are rewarded according to their work. but at least ShopperBob is so paid.
On a brighter note, I got an e-mail from Amusement Advantage this morning that they are adding $10 to every shop to offset the higher cost of gas.

smiling smiley
@sandyf wrote:

Zek, I always thought I understood the math of this but now I am wondering exactly how the client makes a profit on the item you purchase for a shop that the client then reimburses you for? Basically in my math the client not only does not end up with any net profit for selling you , the shopper, that item but they also may have some small per item costs involved in ordering , stocking etc of the item not to mention the cost of the mystery shop program. .

@ sandyf, the overhead/cost of sale is factored into the selling price (upfront). Correct, clients are buying a service from the MSC whom delivers information. That is a cost of doing business which may or may not be factored into the selling price, or is budgeted for elsewhere in the business. But on a shop that is fully or partially reimbursable, it is revenue back to the client (not necessarily profit as BirdyC points out).
That's nice to hear at least one company is adding $ to shops. But I don't do anything for AA. I thought about it at times, but just did not seem worth it to me, so I never pursued it. We just need other companies to start doing something.

ShopperBob is right. Many shops are paying the same reimburse/pay that they have paid well over 10 years ago like nothing has increased in price. I'm sure the MSC pay has increased at some point. I doubt all those people are still working for the same pay they were 10 years (or longer) ago.
The reimbursement on shops has nothing to do with the cost of gas, the exception being when you are required to pump at least one gallon. Reimbursements simply cover the purchase needed to test the gas pump or gauge the service during employee interactions.

What we really need are higher fees.
Both the fees and the reimbursements need to be increased over time. Using the same reimburse/pay from 10 years ago is actually a DECREASE since the cost of product has increased (food prices for example). Even if companies don't want to increase pay, they should at least have some kind of extra for the inflated gas situation. However, I"m guessing they are going to bank on people's desperation and needed anything they can get just to get by and they won't add anything. And as long as people will take the shops, they would be right in not increasing anything since they don't need to.
@wrosie wrote:

Hell, people gladly pay over $5.00 a gallon for bottled water, something I drink from the tap. And don't get started figuring out what Starbucks costs per gallon.

The people paying $5 a gallon for water are not the ones hurt by rising gas prices.
@Zek wrote:

@tstewart3 wrote:

The people making the decisions about how much we are paid never buy gas, groceries or anything else. I would like to know their secret.

I think they know or have an idea. They pay the bills or have have a financial person to keep them informed. IMO they are more in tune with good profit margins. Shops that require a purchase is revenue back to the client. Even if the client pays the MS for the shopper reimbursement, the client is still turning a profit. A clearance item or use of a coupon may decrease the profit, but generally the cost is less than what a shopper paid. The one big exception to that may be the $4.99 chickens at Costco.

I should have used the /s for sarcasm, of course they know.

Edited 1 time(s). Last edit at 03/11/2022 11:08PM by tstewart3.
@luckygirl0100 wrote:

Huh?
YOU are the only person who decides how much you will be paid. Don't take the job if you don't like the pay! But fyi MANY MANY MANY MSC & clients are middle class business owners.


@tstewart3 wrote:

The people making the decisions about how much we are paid never buy gas, groceries or anything else. I would like to know their secret.

So...you really think we are in control of how much we make? Maybe on a per gig basis where we can decide whether to take a gig based on the parameters and fee. But if we pass to wait for the fees to go up, can you really make enough to pay bills, save for the inevitable car repairs, a cash cushion or retirement when you have idle time or factor in the time to plan routes? I think MSCs, especially ones who have not raised fees in 10 years should be renegotiating contracts for the increase in our costs.
Building on the above: Perhaps there could be a paragraph or two in each contract that addresses fluctuating costs. We are not paying variable rate mortgages here, but we are subject to fuel and other prices that might change after we have made our arrangements with MSC's for upcoming work. ?

Nature does not hurry, yet everything is accomplished. - Lao-Tzu
luckygirl opines--YOU are the only person who decides how much you will be paid. Don't take the job if you don't like the pay!

Bob agrees--That works for me. BUT, it may not for other shoppers. With nothing scheduled for the weekend, I have completed four shops since Monday, earning $161, a $19 lunch and a triple dip premium cone. In the same five days, I passed on several jobs due to the money being unacceptable. I love the free market concept of business and would have it no other way.
Yup to the above. Some shoppers are already financially situated so as to pick and choose among available assignments. Others need to do some of this work. They have no other option. They need to build slowly and sometimes perform work that others do not want. Eventually, they might reach a financial level that gives them the freedom to be more selective.

Nature does not hurry, yet everything is accomplished. - Lao-Tzu
The best part of higher gas prices will be less consumption which results both in less pollution and less extraction. Gasoline prices in the US have always been crazy low. Canadians, Europeans, and others across the globe have always paid more.

I suspect that IRS/GSA will both soon raise the POV fee. That will be a tax windfall to those of us who drove heavily in January/February as well as those of us who frequently fine fuel for below average prices. I paid $3.49 today.
yes, while canadians/europeans/etc pay more for fuel, they get cheaper medicine. The big pharma companies here do all the research and development and the majority of the cost is passed on to US consumers. So while they pay more for gas, they get cheaper medicine. We pay less for gas and more for medicine.
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