The United States is a country that runs predominantly on cars; therefore, gas stations and c-stores are among the most lucrative business options for people who’re looking for lucrative returns on their investments.
If you’re interested in buying a gas station and c-store, you must carry out proper due diligence before signing the deal. Here are some important factors to consider when buying a gas station and c-store:
Location is the key
Choosing the right location proves to be a difference between a successful investment and a failed business venture.
A fuel station located at a prime location with optimal traffic patterns will provide more business and generate a higher return on investment.
Conversely, a fuel station located in a remote area, will not attract a lot of business. Moreover, it will be harder to sell in the future.
Like real estate properties, the value of gas stations and c-stores is determined by the location. So, you must pick an ideal spot to ensure you earn good profits.
Once you find the perfect location, it’s time to dive deep into the underground to examine the condition of the storage tanks.
In the United States, gas stations are subjected to strict environmental laws. In the case of a leaking storage tank, you can end up paying hefty cleanup costs.
Moreover, the soil replacement and loss of business time can turn your investment into a loss-making venture.
Even if you manage to sell the property, you’ll lose a substantial part of the investment. Therefore, you must thoroughly inspect the condition of underground equipment.
Storage tanks and fuel equipment
Your prospective gas station must have durable, fiberglass fuel storage tanks, leak detection systems, and other necessary fuel station equipment.
Investing in a fuel station with old equipment and machinery will not pay you dividends as you’ll have to make costly replacements down the line.
If you like the location, try to negotiate a deal with the owner and see if they’re willing to reduce the prices so you can upgrade the fuel station.
Also, evaluate the gas station for potential upgrades that you might require to make, for instance, new canopies, fuel management systems, dispensers, nozzles, POS-terminal, etc.
The c-store is where you’ll make a substantial amount of money. So, it’s worth checking out the condition of the store and knows any required renovations in advance.
Most customers who will shop from your c-store will also buy gas from your fuel station. So, you need to pay special attention to the ambiance of your c-store.
In addition to that, you must identify the vendors and supply chain feasibility to ensure your c-store inventory management doesn’t become a problem in the long run.
John W. Kennedy Company is a renowned c-store and service station equipment provider where you can purchase high-quality equipment and supplies. We offer a variety of petroleum equipment and supplies, including fuel management systems, above and underground storage tanks, and more. Visit our online store to browse our products.