I am looking at getting into the C-store business. I have begun resurch and I know a few of the store managers in my area. I am being told by a few that they are selling as much as 10,000 gallons of gas a day and doing as much as $6,000 in sales on the inside. Using these numbers and knowing expense structure and average margin, this would mean that these stores are netting $400-500,000 net profit per year? is this posible, or is someone blowing smoke.
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Are these numbers posible?
(3 posts)-
Posted 1 year ago #
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Those numbers would be exceptional. We provide all types of financing for C-Stores; check out www.cstoreloan.com. Most of the stores we finance are in the range of 50,000 to 100,000 gallons a month, and $50,000 to $100,000 a month inside sales.
Posted 1 year ago # -
First off, these numbers are exceptional, but possible. I have operated stores that did do that type of volume. However, all that glitters is not gold. Remember, Byron, although these stores may be selling that much gas, to sell gas competitively, the basic profit margin on gas is sometimes less than 1 cent per gallon. After overhead, you sometimes barely make a profit. Getting the consumer inside your store to buy your high margin items is the key. Then, considering merchandise sales is also tricky, also. Every merchandise category in a store has a different level of profit. Figuring gross profit for these stores can be tricky. Given your lack of experience in the field, you might be better off hiring a consultant
to help you with a business analysis of whatever c store
you decide to purchase or to do a market anaylsis of the area you plan to build.
Hope that helps, and good luck should you decide to buy!
KatyPosted 1 year ago #
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