[Ps3tn0NcYk]

I have a question for those with experience in gas station economics.

Two blocks from where I live there is an intersection that experiences fairly heavy traffic during normal rush hours. The east-west crossroad is the main annex to a train station that provides 45 minute access to a major metropolitan city and, going the other direction, a major highway that also accesses said city.

At said intersection there are two gas stations kitty corner from one another.

One station is your typical corporate franchise -- a garage with one lift that seems to attract a reasonable volume of tire / oil changes, etc. and a small enclosed area housing the register and a trivial inventory of soda, snacks, cigarettes, etc.

Okay, now the interesting part.

The competing station is always two to ten cents more expensive per gallon, has a two car garage but seemingly does infrequent repairs (same two cars have been on the lift for over a year), has no food/drink in register area and, this is important IMO, on the vertical sign displaying prices and on the actual pumps, the former corporate owner's name is covered in duct tape. I've concluded that someone bought out a former corporate franchise and made it independent and instead of branding decided to just duct tape over any remnants of the old owner.

Note: this is not some rural / hick town. This is a affluent suburb within a 15 minute (assuming no traffic) drive from a major metropolitan American city and 2 minute drive from a major body of water.

So my question is -- how does the latter company remain in business? It is always higher priced than its competitor, it has no marketing/branding (just the opposite, if one takes into account duct taping over previous owners brand), it doesn't seem to do any "garage" work.