If you are considering starting a business, owning a gas station may be a viable option for you. . Buying a gas station is somewhat special to other industries because the gas and oil market changes and evolves continuously.
However, regardless of modifications in the types of fuels used in automobiles now and in the future, customers will still need stations to dispense these fuels. The market continues to see steady growth. Factors like convenience options, volume of gas sold, quality of devices such as the gas station container and location will all influence earnings and the initial purchase cost. However, changes in the economy and fierce competitors are risk factors that should not be overlooked.
There are two kinds of gas stations: a corner store that offer gas and gas stations with convenience stores. Let’s further specify the distinction to prevent confusion. Convenience stores that offer gas run like a small-scale supermarket selling food items in addition to selling gas. Examples include; 7-Eleven and Circle K. Fuel stations with a shop mostly offer gas, but would also sell snacks and may have a car wash and a car service station for oil changes and other mechanical services. Examples of these include Shell, Mobil or Exxon stations. If the gas station has a convenience store connected with it, the value will be higher as the items in the establishment usually have a high profit margin and can make up as much as 80 % of the profits. Although very comparable, it is very important to know the distinctions when taking a look at the purchase price. The greater the profit margins, the greater the asking price.
Further evaluation of price and profits are associated with the volume of gasoline sold and the station’s location. When purchasing a gas station, search for high volume ones. The higher the gas volume per month the more appealing business ends up being.
Just how much traffic does the gas station receive? Stations situated near significant traffic centers like freeways, interstates, airports and shopping malls will certainly do much better than gas stations located in remote areas.
Buying a gas station with quality equipment guarantees adherence to the Environmental Protection Agency (EPA) and state policies. Examine to see when the most current assessment on the underground tanks was carried out. Ask the current owner if any leaks or contaminated materials has been discovered or detected …