Gas Station Profits Are Drying Up—Here’s How to Survive the Financial Crunch

The gas station profits are drying up! Most private gas stations are seeing average profit margins of 1.7 percent, which is extremely low compared to private companies. After credit card fees and other operating costs, they operate in a razor-thin profit margin.

Gas-station-profits

Due to high card processing fees, many gas stations choose not to accept credit card payments, but it hurt their sales as most customers prefer to pay via card at the gas station, especially at the pump. Some fuel stations impose a surcharge, which can also drive customers away.

So, it seems like there’s not a way out. Not really! Here’s how to survive the financial crunch and increase the profitability of your gas station:

Here’s How to Survive the Financial Crunch

The low-profit margins mean that you need to ensure hitting specific revenue benchmarks to improve your profitability. Here are some of the many ways to improve sales at your gas station:

  • Profit from c-store. The convenience store at your gas station can substantially improve the revenue of your pump. Stock essential and food items and high-demand products to maximize the revenue of your pump.
  • Upgrade your pump. Consider upgrading your pump to give it a face-lift. It will attract more customers to your station. You don’t need to break the bank, even some smart cosmetic or functional upgrades can do the trick.
  • Marketing and promotion. Beat the competition by marketing your gas station. Establish an online presence, use social media, form business partnerships, and hold customer contests to grow a strong customer base.

READ: Marketing Strategies for Promoting Your Gas Station Business

Using these methods, you’ll develop a regular clientele, which will also help increase the fuel revenue at your gas station.

Become EMV compliant

We understand that becoming EMV compliant comes with a hefty price tag, but it’s essential to see the bigger picture. If you want your fuel station to survive the financial crunch, you must switch to an EMV terminal.

It will help you shield from liability against fraudulent transactions that take place at your gas station. As fuel pumps are the number one target of hackers, the charges can potentially cost thousands of dollars and put your business under.

EMV-compliance will also help drive more customers to your facility as consumers prefer fueling their vehicles and buying products from facilities that use the latest EMV-terminal compared to those still using unsecured POS systems.

READ: Beat The October 2020 EMV Deadline With Huge Savings From Gilbarco Veeder-Root

If you want to upgrade your gas station and become EMV compliant, contact John W. Kennedy Company today! Located in East Providence, R.I., we’re an authorized seller of genuine Gilbarco products. We provide top-quality gas stations and fuel equipment supplies, including POS terminal systems.

Our partnership with Patriot Capital enables us to offer a range of equipment financing and leasing options. Call at 1 800 238 1225 to find out more about our products.

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