There is a local conveince store for sale for a reasonable amount of $. It is relatively new, so I am not sure why it is for sale. The building is rented, so I would need to make sure it would remain rented to me with no way to break it.

I assume they make pretty good margins on the grocery type items (fountain drinks, canned and bottled drinks, etc...)....like 100% plus.....

I know I can buy a case of Mt. dew for about $4.50 when it is on sale at the grocery store which is about $.19 per can.... they usually get $.50-60 per can.

Does anyone know what a normal margin % is for selling Gasoline? They apparently sell about $9k per day of gas....which is about 250 people worth...which seems reasonable.

O ya... and right now it is only open 8am-9pm.......i would change that, but way better than a 7/11 that is open 24 hours a day every day of the year.

Thanks for any help.

 

Margins on gas can be SLIM, especially if there are stations across the street. If you are the only player in the immediate area, you can usually command a slight premium. Make sure no Wal-Mart/BJs/other wholesaler isn't selling gas close by.

I don't own a store, btw.

"spy" on the store to get a good idea of store traffic, because that's where the $ is.

 

i just went there at lunch....it is an Exxon station, plus mini market, with room for a little subway or other sandwich type place on the one side....

i figured at 2% margins for gas... maybe that is too low? the place looked clean... owner says he has been at it for 3-4 straight years now and is tired of working..... not sure why he doesn't try to hire a decent manager.?

I will wait for more information.

 

i belive they make 5 cents a gallon but they dont make most of there money on gas the all the snacks in the store =)

 

Traffic around the area is important. What's even better is a store location within walking distance of apartment complexes. Prices seem be second, when it comes to convenience. Alot of the patrons from apartments are not able to drive. You will also constantly getting kids buying candies and sodas.

 

you don't want the area to be too high class or upscale because those people usually pump gas with a CC and leave. you want it to be in a middle class area so the people will actually walk in the mart and buy something so you can make some money.

 

I don't own a convenience store but a restaurant. One thing that people don't realize is that you don't keep a majority of your profits. Right now I'm only taking home around 10-15% of my total gross sales and my restaurant has been in business for 18 years (my dad started it and retired). I know a restaurant and a convenience store are different, I just didn't want you to assume you'll be taking home a lot of money, especially if the store hasn't established itself. People tend to hear how much the gross sales is without realizing most of that money goes back into the store. Anyways, goodluck if you decide to go for it.

 

Scot, he is tired of working because it's almost impossible to hire a decent manager as you suggest. If you aren't there yourself, the employees and customers will steal you blind. Employees have no interest in seeing sales increase. Only you being there can make it a real success. And when you figure out how much you are making being there 20 hours a day, after making the purchase payments, you may find out it's worth it, and then again, you may find out you aren't making minimum wage. I think you will find successful convenience stores are run by an owner and his/her family.
I know this from clients' experiences over the last 30 years.

 

I don't know how much small convenience stores cost, but I have a relative who bought one with gas stations, and it cost quite a pretty penny, $3 million and some change.

 

yep, you can't find a competent manager cheap and employees will steal every chance they get.

I wouldn't mind owning a store, but I wouldn't want to work there. well, maybe occasionally to re-enact CLERKS.

Find a manager who is semi-trustworthy and pay him based on the store's performance. Incentives are key. If you just pay a salary, they have no stake.

If the store gets traffic and is in a good area with SHOPPERS, it may be worth it.