Running a gas station is about more than just selling gas. If you’re considering opening a gas station, it’s essential to understand all elements of the business to ensure profitability and longevity. This guide will help you understand some of the critical elements that go into starting a successful gas station.
Fuel Up! All About Gas and Diesel
Gas is the basis of your business, and you probably have a lot of questions about it. Purchasing gas, maintaining a steady fuel supply, and getting the best prices are critical to your operation.
How do gas stations get gas?
Gas stations have contracts with fuel suppliers to purchase wholesale gasoline. If a gas station is branded, it has an agreement to receive that particular brand of gas. If a gas station is unbranded, it may purchase different brands of gas or unbranded gasoline from its supplier. Fuel suppliers, such as Venture Fuels, typically offer various types of gas to their customers, including different grades of gas and diesel.
How often do gas stations refill?
Some gas stations may refill their tanks once or even multiple times per day. However, this depends on the volume of fuel that they sell. As a gas station owner, it’s critical to ensure that you purchase enough wholesale gasoline to keep your tanks full. This helps provide your customers with a sense of reliability — they know they’ll be able to fill up their vehicles every time they visit your gas station.
How important is the quality of your fuel supplier?
The quality of your fuel supplier is the lifeblood of your business. When you have an unreliable or low-quality fuel supplier, you may face several challenges. These include:
- Higher prices
- Lower-quality fuel
- Missed or unreliable deliveries
While most gas stations typically make the majority of their profit from other sources, gas is often the initial reason for customers to visit. Having a reliable supplier will ensure that you don’t run out!
So, How Do Gas Stations Make Money?
As mentioned above, fuel is not typically how most gas stations make the majority of their profit. For many, the biggest profit drivers are snacks, drinks, and other convenience store items like lottery tickets and tobacco products. Other gas station services, like ATM fees, car washes, electric vehicle chargers, and air pumps, can also help you increase your income.
A well-curated inventory of convenience store items can help keep your customers coming back — not just for gas but for their other daily needs. A snack, a cup of coffee, and a top-up on gas can become part of their daily routine, and your store can become a reliable store in the community.
Which c-store items do I need?
To become a convenience store that your community can count on, you have to know your community and stock the items they care about. Market and competitive research can help you establish what items sell well in your area. Regular audits of your sales and careful inventory management can also help you understand the types of items that perform well in your store.
Being aware of your competitors isn’t just about having offerings similar to theirs. It’s also about pricing your products. Gas stations are often positioned relatively close to each other—sometimes even visible to each other. That makes competitive pricing absolutely critical. Finding a balance between keeping your products at an appealing price to your customers and maintaining a beneficial profit margin is critical to your success as a business owner.
Keep your costs down.
Keeping costs down is ideal for any business’s success, and your gas station is no exception. Consider all possible costs for your business: inventory, wholesale fuel, overhead like lighting, employee wages, building maintenance, and more. In some cases, investment (like offering competitive wages) is worthwhile in order to increase profit. In other cases, spending too much in one category, like purchasing a large quantity of low-selling snacks that expire before they can be sold, can be costly for your business.
Turn to Venture Fuels for High-Quality Fuel
Are you new to the gas station business? Quality fuel from Venture Fuels can maximize your profits and ensure smooth operations. Get competitive pricing and dependable service—reach out to us today to start your journey to success.