Do You Think Gas Station Business is a Good Business Model to Get into?

[GSB101]

Hello everybody.

I am new to this forum, but very glad I found it (thanks to Google). I am and have been in Gas Station Business for over 20 years, I am curious to hear how do other business owners/professionals view this line of business. Do you think it is a good business model? Do you think it is lucrative? While do a search on gas station business in this forum, I read a post where someone mentioned that gas station business is not a easy business as it has too many "moving parts".

I would love to hear from people that are in this business and the ones that are not in this business. You may wonder why I am asking this, well I have a podcast on gas station business(Gas Station Business 101 Podcast) and one of next episodes will be all about how people view this business. I have done a survey among my newsletter subscribers but didn't get the desired result as most of the subscribers are already either in this business or trying to get into it. So to get unbiased opinion I have decided I would turn to all of you for help.

These are the following questions I would love to get answers for:

1. Do you think Gas Station business is a good business to get into?
If the answer is "No" then can you suggest a type of business you think people should get into

2. How much money do you think it takes to get into a gas station business?

3. Do you think the life expectancy of a gas station business is longer than many other retail business?

4. What do you think is the biggest obstacle about getting into a gas station business?

5. If you have the funds and are looking to get into a business, would you consider buying a Gas Station Business?
If the answer is "No", what business would you buy?

I would love to hear your thoughts and answers and if you give me permission, I will mention each of your name on my podcast show so I can properly say "Thanks" to you.

[Harold Mansfield]

I would love to hear from people that are in this business and the ones that are not in this business. You may wonder why I am asking this, well I have a podcast on gas station business(Gas Station Business 101 Podcast) and one of next episodes will be all about how people view this business. I have done a survey among my newsletter subscribers but didn't get the desired result as most of the subscribers are already either in this business or trying to get into it. So to get unbiased opinion I have decided I would turn to all of you for help.


I'll do the best I can just to give a general business sense, but I'm not in the business and don't know anything about running it.


These are the following questions I would love to get answers for:

1. Do you think Gas Station business is a good business to get into?
If the answer is "No" then can you suggest a type of business you think people should get into

Of course it is with the right location, and good management. I particularly like the combo stations that have convenience stores, and 1 or 2 fast food restaurants connected to them.
There's a few in my area on busy corners and they are jammed packed all of the time.

Something curious is that there are no real "service" stations anymore. One that also services vehicles for minor repairs, oil changes and so on. Wondering if that's just unsustainable anymore, or just a lack of qualified mechanics to work them.


2. How much money do you think it takes to get into a gas station business?
I have no idea.


3. Do you think the life expectancy of a gas station business is longer than many other retail business?
Not necessarily. I have seen stations close. Again, location and management. Not much you can do if the neighborhood goes to crap and people start moving away, or if you're not on a main traffic artery.


4. What do you think is the biggest obstacle about getting into a gas station business?
Money and experience running it. Just like every business.


5. If you have the funds and are looking to get into a business, would you consider buying a Gas Station Business?
If the answer is "No", what business would you buy?


No, because it's not a business I know nor am interested in. The things I'd start a business doing are things that I already know or have had an interest in for a long time.

I know the web, hospitality (bars, restaurants, gaming, music), and customer service. Pretty much everything I try to get into has something to do with one or the other.

Just choosing "something" to start as a business doesn't even cross my mind. Seems like a recipe for instant failure. Starting a business isn't like picking out a shirt for the day.

[Bobjob]

Southern Bama here as well GSB101.

I believe it is a good business if your in a good location. I would always be worried about the tanks and especially replacing them. It must be expensive.

1) Yes

2) Depends on many factors.

3) As long as the area you are in doesn't go down hill I believe it would be stable.

4) No experience in the field.

5) Probably not. I might consider going in with someone who had experience with them.

[David Hunter]

No idea, but I do hear they don't make much on gas, it's all the sales from inside the store and from the lottery tickets! Just be in a high traffic area and get people in!

[plan2succeed]

Hey I hope I can help...Here are my answers:

1. Do you think Gas Station business is a good business to get into?
Yes, if you are in a great, high traffic area in a place where demand is high (along the highway, in a subdivision, ect)

2. How much money do you think it takes to get into a gas station business? 250K liquid...this is just a guess:)

3. Do you think the life expectancy of a gas station business is longer than many other retail business? If it is in a great area, the gas station can last as long as the city it's in:)

4. What do you think is the biggest obstacle about getting into a gas station business? Biggest obstacle is not having a blueprint for the business. If you don't have a mentor that's already in the gas station business then it can be more difficult

5. If you have the funds and are looking to get into a business, would you consider buying a Gas Station Business?
No. I like virtual businesses best:)

[GSB101]

I love this forum, I sure do appreciate the answers from Harold, Bobjob, David and Plan2succeed, thanks to you all. I will wait another week to see if I get any more answers before I record this specific podcast episode. Thanks again

[turboguy]

I see different formats for gas stations as you are calling it. The most common is what I would call a convenience store. That is about 85% of what I see. About 10% sell gas and do oil changes, light repairs, towing and etc. I see a very few who just sell gas and maybe a few sundry items. I am guessing you are thinking more about what I would call a convenience store rather than what you are calling it a gas station.

The failure rate on convenience stores seems to be very low. Considering new businesses have a very high failure rate that is a good sign. I do think location is important and having a good inventory of snacks bread and other items. Cleanliness is important as well. Most seem to stay in business and to have a decent income.

With gas station/repair shops they also seem fairly stable but it is a declining market. I do think the ones that are successful do make pretty good money but I think it is more on repairs than gas. Someone does need to be mechanically inclined and not worried about getting their hands dirty.

With the few I see that just pump gas they seem the most likely to go out of business and don't seem real prosperous. I do see one that does that that seems to do well. The place is totally unmanned, price their gas a few cents cheaper and you have to pay at the pump with a credit card. I have only seen one like that and it does seem to be busy.

Back decades ago when I was around 20 my Dad and I did come very close to going into the gas station business. I have no idea if it would have worked out well or not.

A few of the promotions that I have seen some local stations to that seem to work are: One offered a free 12 oz cup of coffee with a fill up which being a coffeeholic always appealed to me. Another local station is the only one that is not self fill. They have the same price for gas as everyone else but have an attendant that pumps the gas. They are always lined up with cars so the cost would not be much and many would rather have the better service at the same price. It seems to work for them.

[GSB101]

TurboGuy Thanks for your valuable input....