The Art of Fuel Selling – For Budding Gas Station Owners!

Looking to open a successful fuel retailing business?

That’s a great idea! The high demand for fuel, supplemented by the fact that the industry offers decent profit margins make it extremely attractive.

That being said, there are certain things you must take into consideration before starting your venture.

Here are a few very important tips—let’s call them “the art of fuel selling”—that you should know. Let’s begin!

Choose the Right Location

Location plays a pivotal role in the success of your fuel retailing business. It’s important to conduct proper market research before you set up. This includes learning about the competition and analyzing demand—among several other aspects—to ensure that you pick the right spot.

For instance, opening a store right next to a branded fuel retailer or one owned by major oil corporation can put you at a significant disadvantage, as they’ll be able to offer better prices to customers.

Automate Your Systems

Offer Multiple Items

It’s important that your store is a one-stop-solution for your customers. Make sure to keep different gas supplies and equipment. Not only will this help increase revenue, but it will also make your facility appealing to potential customers.

Furthermore, as an independent retailer, you have the flexibility to sell different brands’ gasoline. Therefore, you should offer a variety of products to cater to a diverse range of customer needs to boost your sales.

Determine the Right Retail Price

Pricing is one of the most crucial factors that can dictate the profitability of your fuel retailing business. The price point you offer is affected by several factors, which primarily include the prices that your wholesale supplier offer.

Moreover, you’ll need to add overhead costs and account for transportation costs, which will further add to the price. In case of credit card transactions, a customer will have to pay an additional 2.5% card processing fee for each purchase. Finally, you must add local, state, and federal taxes to the final price, which can cost as much as 50 cents per gallon.

 

Automate Your Systems

It goes without saying, but it’s extremely important that you have an automated system installed in your store—especially when it comes to selling fuel. An automated fuel POS system will help you to manage your supply chain very effectively.

It’ll greatly minimize—if not completely eliminate—the risk of discrepancies and errors; which are often caused due to human error. Moreover, you can install a remote monitoring system to keep tabs on your sale and generate detailed reports even when you’re not present in the store.

John W. Kennedy Company is an experienced gas station equipment supplier that offers a wide array of product. From filters, hoses, breakaways, paper, ribbons, nozzles, swivels, and other safety equipment to canopies, tanks, automatic tank gauging systems, we provide an extensive range of service station equipment to their clients.

We also offer fuel management systems to our clients to help them effectively manage their supply chain and keep track of their sales. We provide the highest-quality products at a fairly reasonable price in a timely manner so that you’re never short of supplies and maintain a profitable business.

To check out our product range or get more details, visit our online store now

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