Do you want to invest in gas stations and convenience stores?
Before jumping in the 413bn dollar industry, you are likely to do your homework. While most professionals will offer optimistic views about investing in gas stations and convenience stores, some might try to discourage you, and it might not be their fault.
Gas stations are a highly competitive and low-margin business. True! But if you play your cards right, it can earn you a substantial amount of returns on investment and provide to be a worthwhile investment. Here’s all you need to know:
Are Gas Stations with Convenience Stores a Worthwhile Investment in 2020?
Gas stations with convenience stores remain one of the profitable investments in 2020. Of course, you didn’t come here to get a one-word answer and would like to learn the reasoning behind our conclusion.
For starters, gasoline vehicles aren’t going anywhere, at least not in the foreseeable future. While electric vehicles have come a long way, they are not quite there yet to replace the gas-powered automobile industry. So, the demand is still there.
Moreover, most car owners prefer going to fuel pumps to purchase different kinds of equipment, supplies, and car maintenance, because it’s faster, cheaper, and more convenient for them.
In addition to that, a convenience store can also generate a high amount of revenues once you develop a regular customer base. All you need to do is stock high in-demand products, promote your store, and sell a variety of unique items to earn sizeable profits.
It’s crucial to understand that gas stations changes when a new owner takes charge. The historical data somehow shows past performance, but it can’t be used to create projections for the future accurately.
For instance, you can buy a gas station and perform renovation, say change canopy, optimize signage, revamp convenience store, and employ other tactics to attract more customers to a gas station and convenience store, which will increase sales revenue and maximize profitability.
The location also plays a significant part in the success of your gas station. So, make sure you pick the right place to ensure you can employ business strategies to bring more customers to your facility.
The COVID-19 Impact
The novel coronavirus has impacted all businesses in the United States, some more than others. However, gas stations and convenience stores can survive because they are considered essential businesses and were allowed to remain open during the pandemic.
While the low demand for gas and decline in oil prices did affect the profitability of many gas stations, they manage to stay afloat. Moreover, the profits from convenience stores allowed many gas stations to offset their losses.
Once the COVID-19 pandemic will be over, the demand for gas will restore to normal levels, perhaps even higher. Therefore, if you’re getting a good deal on a gas station at a good location, you should seal the deal to create a profitable revenue stream.
If you’re interested in buying gas station equipment and supplies, get in touch with us today! At John W. Kennedy Company, we offer an extensive range of petroleum equipment and supplies at competitive rates. We have served the gas stations and convenience stores in the United States since 1930. Visit our online store to browse our products.