Because the Fuel Outlet concept depends on having a lower price than any other gasoline retailer, Claassen says he must keep his prices lower than other retailers such as QuikTrip. And because Fuel Outlets only sell gasoline, he says, the stations can't fall back on cash from selling drinks, snacks or cigarettes. Not having the cash flow has meant that investors are not seeing the type of dividend checks they once did, he says. The concept There are six Fuel Outlet stores in Wichita, three in Kansas City, Mo., and three more under development in Missouri. The concept is to provide unmanned gasoline retail operations offering discount-priced gas.
Some investors have multiple units and are able to buy and sell their units with other investors.
The investors' liability is limited to their investment. The most they could lose, Claassen says, is what they put into the company. The investment is not insured or backed by a government agency. Like stock in a public company, there is no guarantee of a return, he says. There also is no limit on the return.