Do you ever wonder how these ever larger gas stations really make money? The truth is it is not on what you would think... So lets take a look at how gas stations really make their money. Please follow me on Twitter here: / lukebk
@@richardshufflebottom4011 I hope you treated the place with respect and washed your hands. If someone else left a mess you wouldn’t have had such a “pleasurable” experience to be broadcasting it on the internet.
I deliver fuel and it floors me when I talk to shop owners that are taking a loss on the fuel aspect of their business and are just relying on walk in grocery sales for any profit.
Don't feel bad for them, they can retire selling Energy drinks alone without even taking into consideration the other 1500 products they sell. My neighbor has a QT, he says while gas is not the money maker he can pay himself and his employees with Alcohol sales alone. Gas station owners are filthy rich, especially if they are from India.
@@ballstothewall38 I've been financing gas stations for 20+ years. Gas stations owners are NOT filthy rich. Some of them do well, for sure. No idea how you define rich.
On depends on your contract, with the company. In New York It varying from .08 to .10 - .35cents per gallon. After that contact is signed. Your job is to hustle prices in your convenience store. It can’t be seen as a BODEGA OR CORNER STORE YOUR PRICES WILL BE EXPENSIVE TO THOSE CHEAP PEOPLE IN THE NEIGHBORHOOD.
Interesting. 1970 (my first business) Arco station - gas price 40.9 a gallon on premium (most common type sold then) gross profit per gallon? .08 cents (average station back then 1,000 gallons a day) Gross profit per day 80 dollars. Rewards? Back then, Green or Blue Chip stamps (sometimes 3 times or as much as 10 times purchase) Maps from the company? 10 cents sold for 50 cents. Oil 50% gross profit. Backroom? Usually 1 - 3 thousand a month. Arco paid 90 dollars a month back then if your restrooms were kept clean, inspected twice a month. Gas wars? We ate 1/4 cent for each 1 cent it dropped through a "Sales Meter Subsidy" Coke machine, Cigarete machine, Candy machine, later a Tom's vending machine. Yes, things have changed.
Hey great topic. I could not agree more that the little mom and pop stops are starting to disappear because the majority of people realize that it is supply and demand for everything. Wawa is best known for its hoagies and it’s coffee. I’m not sure if they have a rewards program but as a truck driver I could not agree more that over the road rewards programs are what keep us coming back. Free showers and in-store credit, can’t beat it.
Amazing 9 and a half minutes into the video still hasn't said how gas stations make they're money.. Ok I'm not even going to watch it. Wild guess! "BEER AND CIGARETTES!!" there it is.
u barely make some cents on beer and cig , specially cig not more than 10% ..and then 3% goes on credit card ... so basically your making nothing and doing free customer service
Highway tax. look at the mark up on items in a gas station you can buy the same items at Walmart or dollar general for half price or even lower if the owners are especially rotten. I worked in a gas station that sold chips for double what you could buy em at stores.
When gas stations claim they only make a penny or two profit per gallon of gas, they are full of chit. I have a friend who owns a station. He says a penny or two profit would be about the dumbest business investment in the US. He also says drinks and snacks help, but are not the main money maker. He says gas is typically .40-.52 a gallon profit. He laughs at the thought of making only 50.00 profit on selling 5,000 gallons of gas. Says one employees shift at minimum wage would eat up all the profit and more.... Says he has no idea where the thought of one or two cents profit comes from.
The National Association of Convenience Stores claims that gas station owners make a NET profit of 2-3 cents per gallon of gasoline, net referring to income after operating expenses (employee wages being one of them) and credit card fees, etc. Sorry, but whoever communicated the idea to your friend that gas station owners only make a gross profit of 2-3 cents per gallon clearly had no idea what they were talking about. Should've done their research before talking.
Very likely your friend owns a truck stop selling Diesel. Profit on Diesel is typical in the $0.15 to $0.30 for many truck stops with some in high demand areas getting closer to $1 of profit on Diesel. Gas is typical even in high profit margin areas under $0.10 per gallon profit after all expenses. Remember this is profit after expenses.
@@Lucky8s Well that' s not fact. In this video at 11:46 she clearly states you can set your own margins and currently makes 20 - 3o cents per gallon. This was in january of this year ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-PZhL6_U9pWI.html
There's no way gas stations profit 3 cents a gallon. Gas station cost atleast a million dollars some are 3mil. They would all be shutdown out of buisness if that's all the money they made
