How much money do gas stations make?

How much money or profit do gas stations and owners make? Gas stations are always a good business idea because this product is always in demand. This article will take an in-depth look at gross and net profits.

It is very difficult to determine exactly how much you can earn. It all boils down to the following variables:

• Real estate involved?
• rental cost
• Loan payment cost
• Condition
• Rental (high or low traffic?)
• Premium or discount provider?
• Independent or Franchise?
• Number of employees
• cost of utilities

These are just some of the factors that will help determine how much a station can earn. It is different for each season since the scenarios and costs of doing business will be different for each one. The truth of the matter is that the oil companies take home most of the profits. Independent owners make a very small percentage of the profits from the fuel they sell, but make most of their profits from convenience and lottery sales.

Let’s say the cost at a Florida station is $2.62 per gallon. You can expect to make around 5 per cent of what you can come up with for around 13 cents a litre. Some owners earn even less than that. Now, most of the profits come from the sale of tobacco, chocolate bars and other convenience store items such as lottery tickets. Stores typically get 30 percent of these types of sales in the form of gross profit and 5 to 15 percent from lottery ticket purchases.

A ballpark figure for most high-traffic premium gas stations would be a gross profit of $800,000. After paying operating expenses, you could be left with about 10 percent in net profit of about $63,000 to $80,000.

In the end, it will be up to you to weigh the pros and cons of owning a business. Gas stations are not easy little businesses to start up. There is a large upfront cost involved and it can be challenging to find lenders for this type of industry today.

It will be a huge commitment of money and time. Most high-traffic station owners work 50 to 70 hours a week and have to hire full-time and part-time employees to pick up the slack.