opening a gas station

Discussion in 'General Business' started by adrian88, Apr 12, 2007.

  1. Abbadox

    Abbadox Active Member

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    #21
    Not sure how it works outside the states but in America one of the biggest factors in making a profit has to do with the price you pay for the fuel and much of that is based on the contract your supplier has with the major oil compaines so take lots of time and research the contracts from each supplier before you go with one brand.

    Good Luck! :)
     
    Abbadox, Apr 12, 2007 IP
  2. Bombaywala

    Bombaywala Peon

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    #22
    ROFL - that is awesome response :)
     
    Bombaywala, Apr 13, 2007 IP
  3. Yankee0306

    Yankee0306 Peon

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    #23
    I owned a convenience store with gas and I woudn't do irt again on a bet.

    Gas margins are very thin and at times I had to sell below cost to stay even with the competition.

    Lots of hard work with marginal returns.
     
    Yankee0306, Apr 26, 2007 IP
  4. Valley

    Valley Peon

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    #24
    Stick some used cars on it.
    We all know the sob stories about petrol markups being 2 p per liter, but did you know that LPG which retails here for 42 p per liter drops to 21 p per liter for tanks of 5000 liters in one go.
     
    Valley, Apr 26, 2007 IP
    adrian88 likes this.
  5. adrian88

    adrian88 Peon

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    #25
    selling used cars, fixing cars, sell food, sell gas and owning the real estate
    that shall be the perfect combo
     
    adrian88, Apr 27, 2007 IP
  6. browntwn

    browntwn Illustrious Member

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    #26
    Check out NACS. The National Association of Convenience Stores . . .

    This includes gas stations, carwashes, mini-marts, and the like. They have trade shows with all the related vendors and lots of information if you are serious.
     
    browntwn, Apr 27, 2007 IP
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  7. AffiliateD

    AffiliateD Guest

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    #27
    haha.........
     
    AffiliateD, Apr 27, 2007 IP
  8. mitcharr

    mitcharr Notable Member

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    #28
    You Should Position It Near A School Or Place With Lots Of Kids, You Will Get Much More Business.
     
    mitcharr, Apr 27, 2007 IP
  9. mastanarek

    mastanarek Peon

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    #29
    Have a lot of snacks/food and stuff which will sell like Monster, Red Bull, candy etc just for backup. Also have security cameras...
     
    mastanarek, Apr 27, 2007 IP
  10. killafawk

    killafawk Active Member

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    #30
    what kind of deal are you getting on the gas station? you could always buy it for land, knock the place down or build on it into something and sell it off for profit. if its in a good area right off the street people would pay good money for popular land.
     
    killafawk, Apr 27, 2007 IP
  11. scottphx

    scottphx Well-Known Member

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    #31
    order your gas at the coldest part of the day so it expands in your tank(middle of the night) expansion from the heat during the day will give you less gas by delivery when it cools... (I drove fuel trucks for years) in Arizona... it's amazing how much gas expands with a few degrees when your talking 8500 gallons
     
    scottphx, Apr 27, 2007 IP
  12. ReadyToGo

    ReadyToGo Peon

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    #32
    The two problems are competition and profit margin. Operating solely as a gas station isn't actually that profitable.
     
    ReadyToGo, Apr 27, 2007 IP
  13. Sohan

    Sohan Peon

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    #33
    It's not a business I would go into now, with prices raising.

    Find something else (getaproxy.com :p).
     
    Sohan, Apr 28, 2007 IP
  14. alexus

    alexus Well-Known Member

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    #34
    it's very very good business, probably the best out there, next one would be fast food restaurant

    btw, i do merchant services, i have very low rates for credit card processing, we have a lot of gas stations with us, feel free to PM me
     
    alexus, Apr 28, 2007 IP
  15. pher

    pher Well-Known Member

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    #35
    Of all businesses to get into, that's one that I would definately NOT recommend. As mentioned by many people already... the profit margins on your gas are miniscule. In fact, you'll be lucky you don't lose money from your gas sales.

    Location... Location... Location... Expect to pay dearly for a good location, otherwise you'll make hardly any money on your higher margin items. Unless you are a national chain, Tigermart (Exxon), Racetrack (Raceway), etc, you will be forced to go to use Sams/Costco/etc to purchase your inventory. Not to forget the EPA regulations/inspections, ugh. Not a headache I'd recommend to anyone.

    You are looking at a ton of money for a ton of work. Land based businesses work best if they are owner operated for at least a year or two. It works two-fold; you are there to ensure that your personal interests are protected at all times, and you develop a rapport with your customers. Customers like seeing the owners working at the business. That means a lot of time investment for you.

    For the amount of money you are spending, go with something that requires a lot less man hours, ie: carwash. Still pricey (over $100k per bay), but its a virtual cash cow that requires 2-3 hours per day of your time. Not that I'm recommending a car wash, but it beats a gas station in terms of investment and man hours.

    Just my 2 cents...
     
    pher, Apr 28, 2007 IP