But at the other end of the spectrum, gas station owners face slowing sales growth and their usual thin margins. Relative to the average private company, the gas station industry is experiencing much slower sales growth on smaller margins. Because many of these companies also have convenience stores on site, one possible way for business owners to counter-balance this slowdown in the rate of growth might be an increased focus on selling snacks, beverages, and other non-gas items. The ultimate financial impact of lower gas prices will depend on other factors like cost of sales, which is not necessarily bad news, analysts say. The margins for this industry remain fairly consistent and fixed, according to financial statements filed over the past ten years. According to statements collected by Sageworks, even when gas prices are at an extreme high or low, gas station owners and operators consistently see net profit margins of less than 2 percent, meaning they bring home less than two cents of profit for each dollar spent at the pump. Note about timeframe: Each data point is a trailing twelve-month figure, i. The opinions expressed here by Inc.
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Gas station owners usually work as the managers of their units, hiring and training employees, counting inventory, ordering gas, food and supplies, placing advertisements and erecting displays and promotional banners. If you want to be a gas station owner, you’ll probably need to purchase a franchise store from one of the major chains. The franchise company will then train you on how to run the gas station. Gas station owners pay their own salaries from the profits they earn. If you want to own a gas station, consider working at one for six months or a year as an assistant manager. That way, you can learn the operations of the business before investing any money in your own gas station. You want to make sure you like the business before making an investment. Typical qualifications for a gas station owner or manager are a high school diploma, physical stamina and math, customer service, interpersonal, supervisory and computer skills. Average incomes for gas station owners varied considerably within the four U. Most gas station owners earn more after gaining years of experience in the industry.
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With experience, you’ll know how to better attract customers through advertising, in-store promotions and exceptional customer service. You’ll likely have more repeat customers once your gas station has been running for several years, which can positively impact your income. The location of your gas station also will impact your earnings. Locate your gas station in a busy section, particularly near a highway. That way, you also generate business from travelers.
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The salaries of gas station owners may vary according to years of operation, location, gas brand, convenience store merchandise and operating expenses. Owners typically make higher profit margins on in-store merchandise sales, including snack foods and beverages. Credit and debit card transaction fees may negatively affect profit margins on fuel sales when commodity prices increase. Salary ranges are usually lower when an owner first acquires a gas station business, due to the learning curve and start-up costs. This figure is an approximate average of business opportunity listings for gas station owners. Average annual salary might be directly affected by the number of stores owned and the owner’s individual business savvy. Seasonality might affect the owner’s monthly take-home pay in certain locations, especially in states that are highly dependent upon tourism. Gas stations located along interstates that travelers and truckers frequently use will also be witness to fluctuations in monthly income. Gas station owners who acquire an established, high-volume location might expect an annual average cash flow of slightly less than one million dollars. This figure does not take into account any internal business expenses, such as payroll. High-volume stores experience average monthly fuel sales volume between , and , gallons, according to one owner who reported sales from through April A gas station owner’s annual earnings before taxes might be above six figures if he operates a high volume store in a prime location. Profits earned from other services, such as a car wash and state lottery sales, might help supplement fuel and in-store merchandise profits. The investment costs for these locations are usually less since the business may currently only support fuel and in-store merchandise sales.
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You will need to register for a variety of state and federal taxes before you can open for business. That is impossible to answer because of all the variables. Purchasing an existing station provides more stable and predictable revenue, and it can make the permitting process easier because the station is already operating. Anyone who has an acumen for business and enjoys interacting with people may be well-suited for running a gas station business.
The bright (immediate) future of the American gas station
You will need to register for a variety of state and federal taxes before you can open for business. But here are somethings you can work. Food items have much better margins varies a lot from item to item but can be double tobacco margins. Four quarts make a gallon. Water Refilling Business. Gas station businesses can keep customers coming back by providing low fuel prices and clean facilities. Good ones make a lot of money.
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I’ve actually owned a Shell branded gas station and can provide you better answers than what I’ve read so far. Of course each station will be different depending on the location, pricing, services, and competition. But here are somethings you can work. The profits are mostly made in most cases from the convenience items inside the store.
Food items have much better margins varies a lot from item to item but can be double tobacco margins. Trinket items at the counter like lighters and hot foods have the best margins typically. Keep your gas prices competitive and keep your costs down and you can make a decent living x a gas station owner. Owmer wishes to you. Well, there are some «gas Only» gas stations, but they make there money in volume.
Yes, you are correct. Most gas stations make only 3 -4 cents per gallon of gas. Besides the price of the oil, the refining costs and the transportation costs, probably the biggest cost is the taxes on it. Federal and state taxes mnoey included in the price and can and usually are more than half the total cost. A gas station that has a service area, makes up for the loss or lack of income by charging a higher price for «attendant» pumped gas versus self serve.
A gas only station makes its money by volume. You are correct that it’s only pennies on the dollar, and that amount is reduced again since so many use credit cards to pay for fuel, which takes another percentage off the top mudh the transaction.
You won’t see a «fuel only» station any more for just that reason, they have gone the way of the «full service» station, so now it’s gas and taco bell and a food store with inflated prices, or they wouldn’t make it. A large percentage of what is collected for fuel is taxes that go to various entities also, further reducing prices, plus it’s highly regulated and you must have certified pumps that are checked frequently.
When prices drop, you celebrate, and the owner of the station groans since he has already paid for what is in the tank, and his profit just took another hit. There’s a slice, not large, on the gas. Then you have all the services associated — convenience store, repair, car gass.
Definitely more profit on all. Trending News. Schiff goes after Trump’s lawyers on trial’s first day. Cop suspended for troubling video of ex-NBA player. Pamela Anderson weds ex in secret wedding: Report. Coronavirus is in the U. Massive brawl breaks out at college hoops game. Harry and Meghan threaten new media lawsuit.
New Jen Aniston, Brad Pitt photos send fans into tizzy. Taylor Swift: I’m ‘no longer polite at all costs’. Answer Save. Favorite Answer. Hello Cludia, I’ve actually owned a Shell branded gas station and can provide you better answers than what I’ve read so far. Tabitha Lv cqn. How do you think about the answers? You can sign in to vote the answer.
Marta Lv 4. One should join the advertisement industries with some pliable work. A great property that is photographic can attract business to the area. Advertising can multiply the profit by asking for assistance to sustain, and attract top spender activity. Service is critical to quality automotives. Top locations withProfit ofStations can make a drab area better to viewing. Good luck! Pat B Lv 7. That is impossible to answer because of all the variables.
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Recent statistics indicate there are overgas stations operating in the United States, employing nearlypeople. The large majority of those So, what does the future hold for gas station owners? Does it make sense to invest now by buying one or more gas stations? Many entrepreneurs have found that operating a gas station can be both profitable and enjoyable, and as for the immediate future of the industry, it appears to be clear sailing. But, as noted above, once you start looking 10 or 15 years down the road, the future gets a little cloudier. There are definitely technological advances already in motion that will eventually spell real change for the gas station industry as we know it today.
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As things stand right now, running a gas station that enjoys an optimal location with plenty of traffic, is a fairly solid, profitable venture. The actual sale of gasoline is not really profitable in most cases — the average margin is just 1.
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