What will you name your business?Ĭhoosing the right name is important and challenging. Car washes, auto shops and restaurants are popular side businesses to add. Gas stations can add revenue streams and increase their profit margins by incorporating sideline businesses. (Profits may increase once a station’s loan is paid off.) How can you make your business more profitable? According to The Nest, gas station owners make around $70,000 each year. In an example that JUX Law Firm provides, a gas station that earns $2.4 million annually might have ongoing expenses of $2.1 million, and that doesn’t take into account all the salaries and some other fees the gas station must pay. Gas stations can generate millions of dollars in revenue, but much of this is often consumed by ongoing expenses. Each sale may be small, but lots of sales over the course of a day can generate a significant revenue. Most gasoline stations have many pre-made foods, snacks, beverages and convenience items available for less than $5. Instead, they use low fuel prices to attract drivers - and then sell other products that have higher markups. The price of gasoline fluctuates on a daily basis, but most gasoline station businesses don’t try to make a lot on the fuel they sell. windshield washer fluid and tire pressure gauges) This is just one of many products that gas stations sell though. Stations are named for their primary product: gasoline. How does a gas station make money?Ī gas station business makes money by selling products to drivers and passengers. Anyone who comes into a gas station is a likely customer and will probably spend at least a few dollars on an item. While these are ideal customers, gas station business owners aren’t picky about whom they serve. Long-haul truck drivers will also frequently purchase some food or a beverage, and they’ll also often spend hundreds of dollars filling up their truck’s tank. Traveling families won’t purchase a lot of fuel, but they’ll frequently get snacks or beverages for everyone in the family. Who is the target market?Ī gas station business’ ideal customer is either a family that’s traveling or a long-haul truck driver. They must also purchase other products that are sold, and pay employees’ wages, utilities, taxes and permit fees. Gas stations must pay for the fuel they sell, which alone often runs over $1 million annual for many stations. The ongoing expenses for gas station businesses are high. What are the ongoing expenses for a gas station? In some cases, the startup expenses can be much more than noted here.
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