Factors to Consider when Buying a Gas Station
Calculating the monthly profit margin of a gas station is essential to determine potential earnings. So, when buying a gas station, some of the important factors to evaluate include: the results of an environmental site assessment evaluating the environmental history of the gas station property and, if needed, a sampling and study of the underground property; the need to have mandatory double-lined tanks.
Tips for Increasing Gas Station Profitability
Buying a gas station can be a great business opportunity, but knowing what to look out for and the right questions to ask can be the difference between a long, successful business and a short-sighted misstep. First, total all revenue, including sales inside and outside the store. A station’s location significantly impacts its bottom line. The average gross margin on gasoline is 15 cents per gallon.
Points to Consider Before Purchasing a Gas Station
Thereof, how do you make money owning a gas station? 7 Ways to Make Your Gas Station More Profitable. There are innumerable benefits of purchasing a gas station. You have to, however, consider several factors before sealing the deal. Let’s look at all the factors you should ensure and avoid when buying a gas station. Go with your instincts but don’t ignore the numbers. Don’t rush the deal. Always conduct in-depth research to ensure the facility’s integrity. Consider long-term revenue projections instead of trying to cover short-term, quick objectives.
- Use a reputable company with experience in gas station environmental issues. They will help uncover any past or current issues before you buy the gas station.
- Are there any tanks and pumps issues? The tanks should be reviewed as part of the environmental assessment, and you should ask the seller about the pumps’ status as well.
- Have your broker assist you in negotiating a good purchase deal.
Before you can begin to look for a gas station to purchase, you’ll need to know how much you’re willing to spend on your investment. Write up a business plan that takes into account total costs of the building, mortgages, maintenance costs, and the gas itself. People need to drive to work and trucks need to carry goods across country. Gas stations are a $250 billion a year industry. There are over 120,000 gas stations in the country. More than 80% also have a convenience store attached to them.