The revenue of gasoline stations in the United States is projected to reach approximately $476.5 billion by 2023. These number seems impressive on the paper, but in reality, the gas stations struggle to register good profits due to razor-thin margins in fuel sales, so they have to recuperate their profit percentage from the convenience stores sales.
However, that’s not enough. While c-store sales and other revenue streams help supplement income, it’s crucial to keep tabs on the costs to maximize profitability. The hidden expenses are the main culprit that affects the bottom line of your business. Here are three proven ways to reduce gas station and c-store costs:
Upgrade your fuel dispensers
Downtime costs are one of the most significant expenses that most gas station owners tend to ignore. Faulty fuel pumps can cripple the number of customers your facility can serve, resulting in longer wait times and dissatisfied customer experience. Upgrading fuel dispensers that require frequent repairs with new ones is a great way to minimize the downtime costs.
Effective inventory management
The profits from your convenience store play a critical role in balancing low-margin fuel sales. Stock your c-store with higher-profit in-store items to improve the bottom line of your business. An effective inventory management system will minimize losses and wastage, especially if you keep perishable items in your c-store.
Train your employees
Don’t ignore the opportunity costs of your business. Gas stations and c-stores with good customer service generate more traffic and maximize profits. So, train your employees to manage an excellent relationship with regulars to maximize repeat business. It can potentially save your business thousands of dollars in lost sales.
EMV Compliance
Gas station owners who haven’t yet switched to an EMV terminal should start considering it. The EMV liability switch after April 2021 will open them to financial liability in case of fraudulent transactions. A single fraudulent transaction can offset the benefits of reducing costs through the ways listed above. It’s better to be safe than sorry.
John W. Kennedy Company is a renowned supplier of petroleum equipment and supplies in the United States. You can find the best-quality gas station equipment from the top brands like Gilbarco Veeder-Root on our website. Browse our online store to find premium-quality products for your gas stations.