What to Look for When Buying a Gas Station
10 Things to Look for when Buying or Leasing a Gas Station
Buying or leasing a gas station tin exist a great opportunity, but it pays to go into a deal with your eyes open. Here are some things to retrieve nearly when making your decisions.
i. Branded or Unbranded? Do you want a branded station with 1 of the major oil companies such as Trounce, Exxon or Mobil, BP or Chevron, or do you lot want an unbranded station?
A branded store gives you back up, preparation and advertizing through promotion of its make in addition to the brand recognition that these majors have within the industry. Near brands have rolled out advantage programs that tin greatly benefit station owners and has been proven to drive more gallons. Larn about the different brand reward programs here.
With the make comes standard practices that must be upheld to maintain the image and quality that the name brings. If you are willing to deal with the rules of the brand, you can benefit profoundly from the name recognition.
Another major benefit of a branded store are the branded consumer and armada cards that save meaning money in credit carte du jour fees. With your average branded card having 0% transaction fees versus your typical third party credit cards that accept anywhere from 1.95% – 2.35% transaction fees, you tin run into that the savings add upwards for each customer.
Going unbranded on the other hand tin be a bit of a gamble. Consumers place a value on a name make, so that means an unbranded will have to make a proper name for themselves from scratch. This isn't like shooting fish in a barrel in a market saturated with quality brands on every corner, still it tin can be done in the correct place with the right person backside the helm of the business organisation.
2. Get assist if yous need it. A benefactor like Southeast Petro can provide a list of stores available for purchase or lease , assistance you lot discover financing and offer brands that will contribute to your success.
three. Examine what yous will inherit from the previous owner. For case, cheque the previous owner'due south supply contract. If the contract is transferrable, yous volition assume the contract. Brand certain you read through it and ensure that nothing in the fine impress will hurt y'all or your business.
Also bank check to see if the station is profitable, with the help of a professional auditor if necessary. Count customers yourself. In addition, be sure the facilities are inspected for leaks, soundness of construction and any other issues.
four. Consider all aspects of your location. The location also every bit the traffic pattern are of import to your success. A decorated intersection may non be platonic if in that location isn't easy admission to your store from both directions, but corner lots and highway exits tin can drive business in bigger cities. In a not-urban area, wait for a densely populated residential surface area.
Also know local laws that will accept an impact on your location, from concern to environmental regulations. In addition, check to come across if road construction or other potential threats to the business are scheduled.
five. Ensure access for potential customers. Is the station yous're because in an expanse frequented by trucks or business fleets? Make sure the big trucks and fleet vehicles tin get to your pumps and that they can get in and out of your station easily.
vi. Understand competition and demographics. If in that location'due south likewise much competition in the expanse, it may hurt your business. Merely if there is footling or no competition, the lack could be a sign that at that place isn't enough action to back up businesses in the expanse. Do research on the demographics of the location by looking up government census data on how many people are in the area and their ages, earnings and other information. It is also wise to check with local building and permitting departments to meet if whatsoever of your major competitors have plans to build near the property you are trying to purchase. Find your building section by county here. Make your determination virtually how y'all volition be able to compete before you buy, so that you are not caught off guard.
seven. Go along in mind the safety of the expanse and the station. Check police force records or talk to local police officers about how safe the area is. Gas stations are especially vulnerable to robberies. Even if the expanse seems safe, make sure you accept sufficient lights, windows and security cameras to deter criminals.
8. Look for a station with a nice convenience shop. A large, well-maintained convenience store can draw customers and earn you more than coin.
9. Exist clear on what comes with your bargain. Are you ownership the land and the shop? Are there separate owners for each? What almost other businesses on the property, such as a car wash? Or are you just leasing the shop?
10. Draw on all your resources to brand the best deal. A lawyer tin assist you review the details. And a distributor such as Southeast Petro can provide you with additional advice and resource, as well equally follow-up support to assistance you make your new station a success.
Source: https://southeastpetro.com/10-things-to-look-for-when-buying-or-leasing-a-gas-station/