Owners of gas stations with convenience stores are anticipated to maintain profit margins in the coming years.
Purchase costs command the lion’s share of industry revenue, even as crude oil prices grow slowly due to strong price-based competition throughout the industry. To maintain margins, industry operators are expected to contain other costs by employing a variety of strategies. For example, more store owners will offer discounted prices to consumers that purchase fuel with cash, thereby containing interchange fees. Additionally, wages are expected to remain relatively flat at just over 4.4% of industry revenue, as store owners become more efficient and learn to manage their operations with fewer employees per store. Wages are expected to grow only slightly slower than revenue over the next five years, rising at an annualized rate of 2.8% to over $18.1 billion.
In addition to containing costs, a greater focus on providing a variety of convenience store items will aid profit, as store items are often more profitable than gasoline. Industry operators will add more variety to their prepared and fast food offerings, in addition to healthier options such as fresh salads, fruit, and nutritious snack bars. Also, gas stations that have large convenience stores, car washes and other amenities will gain a competitive edge. As a result, major companies are expected to continue divesting locations that lack products and services that contribute to earnings. In turn, more businesses will enter the industry, causing the number of locations to rise an annualized 1.7% to 117,843 over the five years to 2022.
Financing the Dream
Get an affordable working capital source and take advantage of bulk inventory purchases and/or equipment purchases. Maybe you have an opportunity to buy another location or give your current location a major facelift. These revenue generating ideas have proven highly successful for many in this industry.
The Network offers affordable working capital and property loans from a proven lender in this industry. Getting your free rate and term quote is simple and can be done online via our secure interface.
- Complete the online questionnaire.
- Review and select your terms.
- Began the closing process and get funded.
If you need emergency working capital for unplanned events like major equipment replacement, paying a vendor for an emergency service, or repairing damage to the store location complete our special form. Funds can be deposited into your business bank account in just 3 business days or less.
The Network is not a lender, it is comprised of many lenders and other small business service providers.