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Message
re: Owning a gas station...how much money is there in it?
Posted on 4/16/14 at 5:14 pm to jso0003
Posted on 4/16/14 at 5:14 pm to jso0003
quote:
I seem to remember the guy who owned them on here saying you were doing good to net out 30k per year from one.
I know the point was made that QTs and similar chains were making mom and pop type stores hard to run. Said they have better buying power for Cstore items and could price below costs for gas to encourage people to come into the store
2
Posted on 4/16/14 at 7:20 pm to GenesChin
My cousin sold his gas station after only owning it for about a year. Said he was not making much money and people were always stealing gas.
Posted on 4/16/14 at 7:20 pm to GenesChin
quote:
I know the point was made that QTs and similar chains were making mom and pop type stores hard to run. Said they have better buying power for Cstore items and could price below costs for gas to encourage people to come into the store
This for sure, I love QT... I think I could live on those taquitos
Posted on 4/16/14 at 7:30 pm to deNYEd
quote:
Dude, Gas station business models arent supported from selling gas. You make prices as competitive as possible to draw people into the business to sell them Drinks, candy, and cigs.
This. My dad owned a gas station/small grocery. You only make pennies per gallon of gas. He had a deli and sold sandwiches, burgers, and plate lunches. He was a BR fireman also and my mom ran the store. At its best, it was enough to live on. You won't get rich unless you can make it enough of an actual grocery store.
Posted on 4/16/14 at 7:43 pm to tenderfoot tigah
quote:
people were always stealing gas.
I don't even see how this is possible now. You either swipe a card at the pump or pre-pay.
If you have a good location and know your shite, you can make bank off the trash that doesn't know how to grocery shop and comes in for their cigs, alcohol, monster drinks, and last minute chips and soft drinks for their sorry arse kids.
Posted on 4/16/14 at 7:51 pm to notiger1997
My neighbors growing up owned the Shell station that was at Lee Circle. They made bank.
Posted on 4/16/14 at 9:25 pm to GFunk
I can't imagine independents make a ton of money.
Posted on 4/16/14 at 9:54 pm to Jcorye1
FWIW, my father's living is made on people buying mom & pop gas stations. He is a geologist and environmental attorney, specializing in groundwater and contamination mitigation. A lot of his cases are decided on he-who-can-afford-the-most-council, but he's trying to fight the good fight and represents a lot of mom & pop stores. There is a lot of liability in gas station ownership and unfortunately the newbies are the ones eaten alive. Its not every gas station, but you have to know what you are buying, the history, and the small print.
Posted on 4/16/14 at 10:14 pm to Jcorye1
quote:Again, there is money to be made regardless of brand depending on the auxiliary products offered.
Posted by Jcorye1 I can't imagine independents make a ton of money.
Posted on 4/16/14 at 10:30 pm to GFunk
Posted on 4/17/14 at 12:03 am to Bayou Tiger
I work for the bank that finances the majority of all gas stations in NOLA. Heres the deal:
At least in NOLA, most gas stations are owned by arabs (with some indians). While this is stereotypical, it is a business model that works because of their culture. Their lives are committed to the stores and they are willing to literally spend 24 hours a day there. That, or they can hire family or fellow immigrants to work there for next to nothing.
That being said, if you own just 1 or 2 gas stations, you aint making much. Like maybe 80-100k if its a good store. The guys that make bank are the ones who own a bunch of stations. Like at least 8-10.
On top of this, the stores that make a ton of money are the ones in poor urban areas without good access to full grocery stores or banks. If you only own 1 or 2 stations, you cant afford to buy these prime locations. Thats not to mention that they are still in the ghetto and you have to be willing to deal with everything that comes with that. Honestly, 99% of white people are not.
At least in NOLA, most gas stations are owned by arabs (with some indians). While this is stereotypical, it is a business model that works because of their culture. Their lives are committed to the stores and they are willing to literally spend 24 hours a day there. That, or they can hire family or fellow immigrants to work there for next to nothing.
That being said, if you own just 1 or 2 gas stations, you aint making much. Like maybe 80-100k if its a good store. The guys that make bank are the ones who own a bunch of stations. Like at least 8-10.
On top of this, the stores that make a ton of money are the ones in poor urban areas without good access to full grocery stores or banks. If you only own 1 or 2 stations, you cant afford to buy these prime locations. Thats not to mention that they are still in the ghetto and you have to be willing to deal with everything that comes with that. Honestly, 99% of white people are not.
Posted on 4/17/14 at 10:16 am to Brightside Bengal
I know a family that have two in pretty nice areas and they probably pull in 200k a year
Posted on 4/17/14 at 11:50 am to Dr. Shultz
100k per store net would definitely be on the very high end
Posted on 4/17/14 at 12:34 pm to LSUAfro
quote:
Again, there is money to be made regardless of brand depending on the auxiliary products offered.
I'm not saying there is no money to be made, but you have to have a loyal following, because there is no way in hell you can compete with the larger companies that control the downstream and upstream part of their business. Exxon/Valero/Murphy/Phillips etc are not going through distributors to bring it to their own gas stations in the normal course of business.
Posted on 4/17/14 at 12:57 pm to Jcorye1
Just did some super rough back of the envelope math and it looks like QUIKTRIPs net income margin is a hair over 1% at 1.14 and they net out about 190k per store ...
They're on the highest possible end of the spectrum though considering they're basically the Chick Fil A of gas stations...
They're on the highest possible end of the spectrum though considering they're basically the Chick Fil A of gas stations...
Posted on 4/17/14 at 3:22 pm to VABuckeye
A Circle K will do 20k a day just in inside sales.
Posted on 4/17/14 at 3:55 pm to jso0003
quote:net income margin you say?
net income margin
Posted on 4/17/14 at 4:02 pm to Coach Guidry
quote:
A Circle K will do 20k a day just in inside sales.
shite...not sure where you pulled that from, but I want in on that circle K.Posted on 4/17/14 at 4:47 pm to LSUAfro
Or profit margin if that is your preferred nomenclature...
And looks like an individual store averages about 45k in rev per day.
Again... These are very rough back of the envelope numbers...
Couldn't find much info on operating income but id put their operating margin about 2.5 %
And looks like an individual store averages about 45k in rev per day.
Again... These are very rough back of the envelope numbers...
Couldn't find much info on operating income but id put their operating margin about 2.5 %
Posted on 4/18/14 at 12:28 pm to jso0003
I have some family that leases several corner lots in prominent locations around the nola area to gas stations and they do well. They dont actually own the gas station, Just the land it's on.
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