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Buying gas stations
Posted on 7/8/15 at 4:22 pm
Posted on 7/8/15 at 4:22 pm
I saw the daycare question and I thought to ask since this has been on my mind: Has anyone owned a gas station? How profitable are they?
I haven't done all the research that I'd like to yet but I've done a lot of digging on Sunbelt Business Brokers to see what the price ranges would be. My understanding is that profits you get off the selling of gas are negligible at best, and that business is really done in the convenience store.
What are the experiences of anyone who has owned a gas station? Is profit pretty reliable or does it fluctuate? And also, since I haven't contacted anyone about a purchase yet, if all you have to go by is revenue and cash flow figures and the asking price, how easy is it to discern how much the profit may be?
I haven't done all the research that I'd like to yet but I've done a lot of digging on Sunbelt Business Brokers to see what the price ranges would be. My understanding is that profits you get off the selling of gas are negligible at best, and that business is really done in the convenience store.
What are the experiences of anyone who has owned a gas station? Is profit pretty reliable or does it fluctuate? And also, since I haven't contacted anyone about a purchase yet, if all you have to go by is revenue and cash flow figures and the asking price, how easy is it to discern how much the profit may be?
This post was edited on 7/8/15 at 4:27 pm
13
Posted on 7/8/15 at 5:14 pm to maine82
My uncle did, Arco Am Pm in Baker Ca., half way between L.A and L.V., made a fortune before selling it.
location, location, location
location, location, location
Posted on 7/8/15 at 5:18 pm to maine82
No first hand knowledge, but it seems like a lot of work.
Posted on 7/8/15 at 5:22 pm to dantes69
quote:
location, location, location
I think this is what I remember the most after reading Stout's input on the topic years ago. You also need to have a trustworthy staff which can be difficult in the gas station world.
Posted on 7/8/15 at 5:25 pm to NewIberiaHaircut
Our family has had our hands in a few of them bewteeen Lafayette and Houston.
The real money is on beer, tabacco, and food items (prepared) Of course location is key...and clean restrooms. You'd be surprised how many return customers we have (the commute from Houston to Louisiana) because the restrooms are clean. These folks come in and purchase food and beverages twice a week.
The real money is on beer, tabacco, and food items (prepared) Of course location is key...and clean restrooms. You'd be surprised how many return customers we have (the commute from Houston to Louisiana) because the restrooms are clean. These folks come in and purchase food and beverages twice a week.
Posted on 7/8/15 at 5:44 pm to maine82
Paging fat bastard
More like. Bringing fat bastard back from the dead.
More like. Bringing fat bastard back from the dead.
Posted on 7/8/15 at 5:50 pm to Coach Guidry
quote:
You'd be surprised how many return customers we have (the commute from Houston to Louisiana) because the restrooms are clean
No I wouldn't. I'm in outside sales and have all of my clean bathrooms mapped out. I may be one of your return customers. Thanks for caring about the bathrooms!
Posted on 7/8/15 at 5:54 pm to I Love Bama
quote:
No first hand knowledge, but it seems like a lot of work.
yeah, lot of work, low margins, and shady as frick employees.
No way would I touch it.
Posted on 7/8/15 at 6:00 pm to NewIberiaHaircut
quote:
I'm in outside sales and have all of my clean bathrooms mapped out. I may be one of your return customers. Thanks for caring about the bathrooms!
If the A/C unit is always blowing cold in the restroom...youre at my joint.
The managers could never understand why we are so hard on them about the restrooms. If you walk into a place...go straight towards the restroom and it is filthy...you will leave without purchasing a drink and a snack. Its very simple.
Posted on 7/8/15 at 6:07 pm to Coach Guidry
quote:
What are the experiences of anyone who has owned a gas station? Is profit pretty reliable or does it fluctuate?
With my experience; if its not on route of an interstate or major highway...its not worth it. The biggest problem we face is employees. So in an effort to combat this, we hired one highly paid manager and two high paid assistants at each location. Between the three of them we are getting about 150 hours a week out of them. Labor is higher than where we want it; but it makes up for it in other areas.
Posted on 7/8/15 at 6:44 pm to Coach Guidry
From a property owner/landlord perspective, if the property is in a good location and its value is increasing significantly it can be difficult to raise rent equivalents on the tenant as they have a difficult time raising prices/margins to cover.
Posted on 7/8/15 at 7:30 pm to maine82
my friend had one. The first 3 years of owing it, he was working 7 days a week, 6AM - midnight. It's a lot of work, but it paid off for him since he's taking it easy now.
Posted on 7/8/15 at 7:43 pm to maine82
Find a way to open a buccees franchise between Baton Rouge and New Orleans. Retire.
Posted on 7/8/15 at 8:03 pm to schexyoung
I can't even imagine the capital it takes to open one of those things
Posted on 7/8/15 at 8:08 pm to NewIberiaHaircut
quote:
No I wouldn't. I'm in outside sales and have all of my clean bathrooms mapped out. I may be one of your return customers. Thanks for caring about the bathrooms!
Same here. I know where all the best cleanest places are in my territory. They get my business.
Usually named Buccees
Posted on 7/8/15 at 10:37 pm to maine82
Someone needs to dig up the awesome thread from several years ago. Some great advice in there that applies to more than gas stations.
ETA: Looks liket he original thread I was referencing got deleted, but here is a thread from Stout that references it, with some good info: LINK
ETA: Looks liket he original thread I was referencing got deleted, but here is a thread from Stout that references it, with some good info: LINK
This post was edited on 7/8/15 at 10:48 pm
Posted on 7/8/15 at 11:25 pm to Coach Guidry
quote:
Coach Guidry
Any chance Peto's is one of your stores? That's our main go-to stop when driving between NOLA and Houston. Located about halfway, clean bathrooms, and the neat little cafe.
Others on our go-to list are the Petro just on the Houston side of Beaumont, and the one, name escapes me, on the south side of I-10 in Rayne - although the Rayne one is starting to get rough in my opinion.
Posted on 7/8/15 at 11:29 pm to maine82
Never owned one, but if I did, I think I'd have to go big. A nice big store, with some sort of deli or small cafe in it. Plenty of pumps. If Buc-ees ever started to franchise, I'd take a look at it.
Also, it seems like the bigger gas stations with bigger stores, also have better employees.
Take a look at the RT6K concept stores by Racetrac. We have two in Chalmette, and they are great, clean, well run, etc. That would be the type of gas station I'd want to have.
Also, it seems like the bigger gas stations with bigger stores, also have better employees.
Take a look at the RT6K concept stores by Racetrac. We have two in Chalmette, and they are great, clean, well run, etc. That would be the type of gas station I'd want to have.
Posted on 7/9/15 at 6:45 am to maine82
If Sheetz would start franchising then I'd open them all along I10 in LA.
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