Owning a gas station continues to be a stable business. Having worked with many customers on selling and buying shell gas stations in US, here are our thoughts and recommendations. It is somewhat unique to different industries because the gas and oil industry changes and advances constantly. In any case, regardless of changes in the types of fuels utilized as a part of vehicles now and in the future, customers will certainly need stations to dispense these fuels. The industry continues to see steady growth. Factors like comfort alternatives, volume of gas sold, quality of equipment and location will all affect profitability and the initial purchase price. Notwithstanding, changes in the economy and savage competition are known risk factors that must not be neglected.
There are two types of shell gas stations in US: accommodation stores that sell shell gas and shell gas stations with stores. How about we define the difference to avoid any confusion.
Accommodation stores that sell gas operate like small-scale supermarkets selling food items in addition to selling gas. Fuel stations with a store primarily sell gas, additionally sell snacks and travel items and may have a car wash and or a vehicle service station for oil changes and other mechanical services. If the gas station has a comfort store associated with it the value will be higher as the items in the store typically have a high profit margin and can account for as much as 80% of profits. Although fundamentally the same, it is important to know the differences when looking at the purchase price. The higher the profit margins, the higher the asking price. brought to you by Gemini and the Bear Photography!
Further examination of pricing and profits is related to the volume of gasoline sold and the station’s location. At the point when buying shell gas station, search for high volume ones. The higher the gasoline volume every month the more attractive the business gets to be.
What amount of traffic does the shell gas stations in the US get? Stations located near major traffic focuses like highways, interstates, airports and shopping malls will show improvement over shell gas stations situated off the beaten path. Purchasing shell gas stations with quality equipment guarantees adherence to the Environmental Protection Agency (EPA) and state regulations concerning the security of the environment and safety. Verify when the latest inspection on the underground tanks was performed. Ask the current proprietor if any leaks or hazardous waste has been found or identified on the premises in the last ten years. Fixing these issues is immoderate so it’s important to think of them as when negotiating the sale.
The economy and the competition are risk factors that should be considered as well when buying shell gas stations. In spite of being a stable business model, there are still risks involved with buying a gas station that you ought to take into consideration. Risk in the Shell gas station business generally relates to the economy. At the point when the price of gas goes up it affects the economy negatively. People make an effort to drive less or are constantly seeking out the establishments with the lowest prices. Also, in a down economy, customers have a tendency to spend less cash on accommodation store items.
While considering the competition, big oil companies like Racetrac, QT and others are opening stores all the time. These giant retailers are affecting the profits of independent stations. In any case, smaller retailers can in any case contend by providing focused prices on both gas and in-store items and putting up stores where the big ones aren’t.