Gas stations are a commonplace feature of daily life and are crucial to the operation of our automobiles. You’re going to probably stop at a gas station at some time, whether you’re on a long road trip or just running errands around town. However, have you ever considered the revenue generated by little petrol stations? We’ll examine small gas station economics in more detail in this piece.
It’s crucial to first realize that a gas station’s profitability might vary greatly depending on a variety of circumstances. These elements include the station’s size, geographic location, and level of competition. Since they can sell more fuel and have more room for convenience stores and other amenities, larger gas stations typically make more money than smaller ones.
The National Association of Convenience Stores (NACS) published a report stating that the typical profit margin for a gas station in 2019 was roughly 2.7 cents per gallon. This indicates that the gas station owner generates a profit of around 2.7 cents for each gallon of fuel sold. This might not seem like much, but when you take into account that the typical American motorist uses 656 gallons of gas annually, the total can mount up very quickly.
Of course, gas stations sell more than just fuel. Convenience stores are common at petrol stations and can be a substantial cash generator. The average convenience shop sale in 2019 was roughly $10.60, according to the same NACS research. This means that a gas station can generate a respectable amount of money if it can draw a constant flow of consumers to its convenience store.
Does having a petrol station make you wealthy, then? The response is that it depends. While some owners of gas stations, particularly those with larger stations and several locations, do make a lot of money, many others find it difficult to make ends meet. When you account for expenses like rent, utilities, and employee salaries, maintaining a petrol station can be pretty expensive.
So, how much does buying a petrol station cost? Once more, this might vary greatly based on the station’s location and size. The typical price to develop a new gas station is estimated by the industry to be around $1.5 million. The cost of acquiring an existing petrol station, however, is considerably lower.
Let’s look at the final point: what do gas stations profit from the most? Convenience store sales, as we previously indicated, can be a significant source of income for gas stations. Gas stations do, however, also profit from selling other goods including cigarettes, lottery tickets, and snacks. Additionally, some gas stations provide car washes or repairs, which can be a successful company.
In conclusion, tiny gas stations can be lucrative enterprises, but their earnings can greatly fluctuate based on a variety of variables. Although for some people owning a gas station can be a route to financial success, it’s not a surefire method to become wealthy. It’s critical to conduct thorough study and carefully weigh all of the costs and potential rewards if you’re thinking about buying a petrol station.