So in the early 80's minimum wage was like $2.35 an hour if you can imagine that & 181 gas stations took in 131 million dollars for the year & that was only 1/3 of the state 1 brand. Profits of only plus or minus 1 penny up or down on a gallon of gas. It's no surprise a 2 pk of aspirin had a Mark up of 7500%
Top seller's aspirin vitamin packs 6 pack cans soda and 3 pack cigarettes. microwave burritos ,nachos , & polish dog's average store would sell 10 to 12 gallons of gas 5000 to 7500 gallons diesel per week major cities.
This interview is GOLD to any business minded person. Thank you so much for asking the "real" questions most interviewers are afraid to ask. And also thank you to all the business owners who are willing to give you specific answers instead of vague answers.
To everyone who has started or is thinking of starting their own business: *Believe in yourself and never give up.* If you can work 8 hours for someone else. You can work 2 hours for yourself.
Love how you ask the questions that normally an interviewer would be afraid to ask cause it got too much into their business, but you got right in there and asked the questions i would ask if i were there. Good interview
Thank you Tahmas.😀 We try to ask questions that we feel will be informative. We're ecstatic that you are enjoying the content. Should we do another video on this industry?
@@UpFlip Yes please I've always been interested in the economics behind gas stations from the people running them. I see they dont operate like traditional franchised business having to pay a franchise fee etc. This was very good i even looked up gas stations for sale in my local area because of this. 😂
This is absolutely an eye opener, my family run 7 gas stations in Nigeria, sold two in 2019 due to poor economy. Been looking to how we could bring our business to the western world and this interview really answered 70% of my questions. Many thanks for this video.
We're so happy the videos was helpful Farayola. 😀Congrats to you and your family on all your success. This is amazing. What area are you all looking to branch out to?
bro I own a gas station this information is false. most gustation owners are very miserable. and if your part a franchise the little profit you get goes back to them
This content is GOLD! Rarely do we get to hear about the nitty-gritty financial details of small businesses and what makes them 'win'. This interview is outstanding!
@@UpFlip Well, at some point today I'm going to have to stop binge watching your videos. :-D Come Monday, it's back to corporate but throughout the week I'm constantly searching for a business to acquire and learning from your videos. Very cool stuff you're producing.
Knowing your customer is crucial but also supporting your employees is even more crucial. Employees are the company's front person. There are convenience marts I will not go to due to employee attitude and lack of cleanliness.
No Disrespect, but when employee work and make sure money is pulled in for business in a better sense, they need something in return, opening, running, making money on a business is not crucial in today's culture, the owners are not helping hands for employees. I can send you list of more than 442 stores in this country where employees are not happy with the owner because there is not returns for employees..
@@rnhs-drr2138 something as simple as a coffee machine and drinking water would work miracles. I worked for 2 company's that didn't offer that and actually had us buy it through their own vending machines
Amazing how open , honest and comprehensive this is ... I have no interest in buying or owning a gas station or any property but this was a pleasure to watch just from pure information and understanding of the sector. Thank you to the owner and to the interviewer ..... Mega BrainFood
Great episode... I worked at Am/Pm for 6 years. The case of beer, cigs, had set prices & the 20oz sodas were pretty much locked in too. The profits came from the fountain drinks which is around 80% profit margin and the carwash since I'm here in CA. Really enjoyed this one.
This is true! In our business class we were taught the majority of profits in a restaurant don't come from the food but the drinks they sell. I guess the rule applies to a gas station as well.
My acid reflux disease and fat stomach made me stop drinking pretty much anything but almond milk and water. As for washing the car, I put on a rain coat and go out in the rain with a sponge and wipe off the dirt.
As a prior gas station owner(Amoco/BP) I didn’t have a choice on my hours of operation. It was specifically stated in the contract that the station must be open 24/7/365. The only exception was if the town would not allow it.
Wow Carlos! I'm sure that station kept you busy. It all depends on location, type of purchase, franchise, privately owned, etc. What industry are you in now?
@@method341 from a financial perspective, not at all! When you factor in the stress that comes along with being opened 24/7/365 and the minimal amount of revenue generated between the hours of 12-6 am, it ends up being a total loss.
This interview videos are quite better than what mainstream channel produces. Big thumbs up for hitting majority of business aspects of gas station business in your questions.
Thanks Parm for being very open and honest about your numbers. It really helps those trying to decide. Saves thousands that we would've paid consultants. God bless you and your business.
Parm knows her stuff inside and out. From running 8 locations to intricacies of costs of pump inspections to inside sales. I need her running my business!
@Jorge Jorge if you listened to the entire episode you’ll know that these were excising stations already generating hefty sales numbers, they improved and increased that number in three years…
@Jorge Jorge I don't think you understand sales revenue vs profit. They could most definitely be doing 37M in sales (think the GAS in gas station). Of that, they will have some markup that is their profit from the gas. Let's do some simple math. Take 4000 gallons sold per day (a number I found in google for an avg flow for a gas station in the US). at 3.50/gallon. 14K/day/store. 8 stores @ 365 days = 40.8M/year revenue from gas alone. Let's add 7% markup for profit. 2.86M for income. That's only the gas income, not inside sales. Now add expenses for the tanks, staff, utilities, taxes and you get the net profit. From the description: "$37 million in yearly revenue"
@Jorge Jorge Ok so you still don't understand basic accounting terms. Revenue is basically all money taken into the business (accounts receivable). Expenses is all money spent to run the business (accounts payable -- like paying for the gas in the tanks, payroll, etc). Profit = Revenue - Expenses. Running a high revenue is a big deal even if you only profit a fraction of that. You're still running financial books moving many times in cash flow than the actual profit.
This man asking all the right questions, and the owner answered so openly with full of useful infos. Probably can’t afford one in the future but I really did enjoyed this video.
You should do a video on trucking businesses. Average 15-25% profit paying a driver, each truck grossing about $280-350k a year in total revenue. Love your videos!
Hi everyone, thanks for watching this video. Few of our viewers had some questions about taxes and wages. I would like to let everyone know that every business here in the USA has to pay taxes whether you are a US citizen or not. Second, when the video was done the minimum wage in our county was $13.69, our new hires started at $15-$16 an hour plus gas cards. The wages are increased after 3, 6 and 12 months of performance review.
$37m sounds like a lot of money but remember it’s the revenue. The billion dollar question is what is the profit margin. Some businesses makes a lot of revenue but their cost of goods and fixed cost eats up most of that and left only a meager amount for profit or even worst, running at a lost...
If she is making 20-30 cents per gallon and you know 40% of revenue is from gas after all the calculations you get a figure of around 800k profit from gas alone which accounts for 40% she probably makes 2 Mil a year give or take plus you can't forget all the partners ect.
Guys, remember, when you calculate net profit, it doesn’t just include cost of goods, ie cost per gallon or goods in the retail store, you need to consider the fixed cost too, ie property cost, employees, utilities and all other cost to operate the business. That is one major mistake a lot of business owner makes...
Gas sells itself if the price is right. The margins though are slim. It's the convenience market that makes the money. So it's all about the location because you want a site with a lot of "pass-by" traffic.
Great video! Location is definitely key. What really has killed some businesses though were larger convenience stores opening nearby. There are 2 gas stations within 2 miles of my home that have closed when a dollar general and a RaceTrac opened up close by.
That’s how a corporatist society works. It’s so much harder for small businesses to start up because already established business can suddenly just open up nearby and then boom.. your business does not blossom
I am from Chad and I am presently pursuing my Master's degree in management the U.S. I just discovered this channel and must confess that I am learning more from this channel than in my Business classes. So practical and in tune with reality.
Not wanting to be contrarian but I understand most gas stations are barely hanging on. Margins on fuel alone are so small they are not enough to keep the doors open. If u get lucky with a location I am sure it can work out well. But for years for example Exxon gas station owners have been complaining to Exxon that the same money simply invested into Exxon stock rather than a gas station and then doing nothing would have made them more money at no risk than buying a gas station and investing the 80 hour work weeks they have as gas station owners.
The owners have several family members involved , contributing investment and time, to running the gas stations they own. This is why you see South Asians and Middle Eastern ethnicities dominating this industry, because white and black people don't typically have extended family and relatives all coming together to start a business. Generally speaking Asian and Middle Eastern cultures will sacrifice individual needs for the good of the family and group.
Pretty cool. Smart. Partnerships do have pitfalls however, especially involving family. Some cultures must be innately better at handling these conflicts. Good for them.
Its also a developmental thing. Often new immigrant groups stick together, then their children and grandchildren go their separate ways. English, German, Irish, Italians all the same pattern in the past.
@@UpFlip My wife of 20 years parent's own a gas station since 1980, we now run it/profit share. I was going to suggest a way to get more business is to have an auto repair shop. This is the key for our gas station, we have a great reputation, it's always busy. We are not big on sales of canady/pop/food/lotto tickets, to much work, not enough profit. Great chanel, I subscribed
We have been successful in reducing the credit card merchant processor fees. We have had a few gas station clients before who were successfully able to save on their CC processor fees because of our expertise. There’s no upfront fees. Would you like to connect?
Awesome Video! Great interview, appreciated the direct practical questions asked by the interviewer and the honest detailed answers given by the store owner.
Very cool and transparent owner. I’m curious what they do about brands they don’t sell a lot of. What happens with expired items, how they decide whether it’s a product still worth showing on a shelf, how they go about replacing that product with something else that will sell better.
Most Vendors give credit for expired items. And they will replace product if it's not selling. And there's alot of companies that will go and promote their products.
37 million over the 8 stations combined seems like a crazy amount at first, but break it apart. Let's use averages: 37 million (gross) between 8 stations is about 4.5 million per year each. If you use their average profit margin of 50%, each station takes in 2.25 million a year. That's about 187,000 per month. Now they have to pay off their loans, pay mortgage on stations, pay utilities, snow removal, garbage collection, liability insurance, pay sales tax, pay employees (I'd guess at least 8 per station on different shifts) and pay themselves. There's 8 partners that all want a piece. That money shrinks quick. Still a good business though.
Too much math, simply put at 10% profit margin puts them at 3.7 mill a year. 3.7 mill over 8 ppl is about 462.5k a year for each person, beats working in any industry. 10% figure is very conservative too.
@@ruffxm meh, I disagree. That quick math using 10% is a good starting estimate for a UA-cam “P&L” breakdown. More often than not, it’s exactly what Wall Street bankers do when they assess a company’s EBITDA over a drink at the bar. Then if the baseline numbers seem enticing, they have the analyst start doing due diligence on the full P&L.
Very good interviewer and very good interviewee. Parm is very open about her business. She really is an amiable person. No wonder their business is thriving. Good job!
This is one of the best interviews I have ever seen Ms parm bhullar has a great business personality everything she said in this video is 100% correct anyone who is looking to get into gas station business this tells lot of information thank you for this video.
Thank you Hunter!!😁🤩We're so glad this video was informative to you. That's one of the primary reasons for this channel. Stay tuned for more great content and have a wonderful week. 👍⭐
Excellent, I very much enjoyed watching this video. Great work by the Host Paul and it was Super Nice of Parm Bhullar to sharing her Knowledge and Information. Thank you very much to both of you.
Several thoughts 1. Great topic, well thought of questions and the guest is clearly a strong business person. 2. I agree with the other comment that I would like to know the separation between gas and store sales. 3. So this family started with one gas station in 2019 and now they own 8? Even with 50% decrease gas sales during the pandemic? 4. Bravo to the American immigrants from India. Their hard work and family team work clearly show positive results. You do not see 2nd generation and older America families willing to get into hard business such as gas stations and work together as a family team.
I'm from Italy and this may not be relevant here.. margin on gas is low even if it was down 50% ( only for 2 months) not a big difference.. gains are made with everything else (shop,carwash or food).. employees salary,taxes and bills are high plus the debt to get in.. I can see her struggling to pay everything. 8 stations is serious debt.. It's a great bussiness model from Shell's part but not from her
Dude, those Indian families have heavy connections in the Oil Industry. These aren’t normal everyday Indians opening up gas stations lol. Not that I’m knocking them but it’s extremely naive to think they are coming from rags to riches
I was trying click on a different UA-cam video and I clicked on Upflip advertisement..this is the best mistake I have ever made..I have been binge watching your videos..extremely educational and informative..I love it!!! You got yourseld a new subscriber !!!
Thank you for a great interview on a business I have no knowledge about. I am thankful Barm was very open to give information about her business. She seems very friendly, knowledgeable and kindly gave all the information UpFLip asked her.
Thank you for watching and providing such wonderful feedback! 😀You're the true MVP.💪👍 This was a great interview. Please stay tuned for more amazing interviews.
I love your videos, guys.You ask all the questions that both I would have wanted to ask, and those I would have thought of but maybe after the interview, and it would have already been to late to ask. Keep these videos coming!
Awesome Kaijaful! We're glad you enjoyed the video. The gas station business can be very interesting. What's some other businesses you'd like to see on the channel?
First time on this channel. Great episode. From the editing, b-roll footage, interview skills, etc it’s all perfect. I’m very surprised you only have 444k subscribers. You definitely deserve 2-3million. But it will come. That’s the great thing about UA-cam, hard work pays off. I can attest to that from my channel. Cheers 🍻
Kudos to the interviewer. Every time I wondered about something, you managed to ask a question that will answer my question. Now this woman knows her business; every question is answered clearly without hesitation
Congrats Brian! This is wonderful! Yes, business can be hard at times, but it also can be rewarding. 😀How long have you been in the health food industry?
8:20 people not in the industry probably don't know that your gas "brand" and convenience store "brand" are typically two separate franchising options and brands. For example here, they're branded Arco gas but not AM/PM (in-store franchise brand). If you are AM/PM branded, they will require you to carry certain products and many products will need to be priced at a specific MSRP.
This interview was a game changer for me ... This is not your typical gas Station and Gas Station Owner ... Your Interview was simple Amazing !!!! Love the structure of it and how seamlessly you let her flow through the interview.
I'm glad to hear that you found the interview so impactful! It's always great to see interviews that go beyond the expected and offer valuable insights. 🙏
Yet another great episode Paul! To succeed in Gas Station Business you must choose the location which gives you traffic. Like something close to an Air base (or factory area as she said) Constant flow of customers not only increase sales but help reduce robberies and break-ins too ")) Lower gas prices guarantee high inside sales. You make less profit on fuel but more on In-store sale. 30% store profit is not a lot, compare to 40% as a norm as far as I remember. Then you have to have a great customer service, customers will make sure to return if you treat them well, know them by their names, a quick chit-chat makes a huge difference. A well lit and well maintained gas station gives a sense of security to customers compared to a dark or dingy ones. Not to forget the clean toilets! It takes a huge efforts to keep it clean but customers will always appreciate it and buy something in return! 😉
This is the first ever UA-cam channel that shares to people about real business knowledge.Great great channel.Keep Up the Super Work 😘😘😘🧠 From Sri Lanka
@@UpFlip yes, very similar. 100 percent customer service and having everything stocked with the right merchandise. Financial services like money transfers and bill payments is also a good idea.
Absolutely these are things I wish my family and friends could implement because that’s why they come here and live the dream they understand and practice group economics.I WANT TO TEAM UPWITH SOME FOLKS OF OTHER RACES THAT PRACTICE OPERATING LIKE OUR JEWISH BROTHERS AND SISTERS SO WE ALL PUTIN AND BUILD TOGETHER SO WE ALL CAN IT JUST DOING IT LIKE THE MOST HIGH GOD GAVE FATHER ABRAHAM THE BLUE PRINT AMEN!IF INTERESTED HIT ME BACK!🙏🏿😇🤔😌🥰💰💰💰💵💵💵💸💸💸📡📡📡☺️☺️😉🇺🇸🇺🇸🇺🇸🇺🇸💯💯
Great episode! I wish you went over the financials more. Revenue is there but I want to know the breakdown of profitability from each part of the business... how much revenue is actually coming from the sales of fuel vs the rest of the operation?
About 25 cents at least from each gallon of gas but right now most stations in California are 40 cents +. And then about 20-35% profit margin from store sales. That should be about average. As far as fuel vs store, it really just depends on each station. If they got 8 gas stations, absolute minimum daily profit should be around 10k. God I wish I was making 10k+ a day lol
@@tomaszs1243 Yeah, years ago I heard that gas stations don't make much money on gas, it's all on the overpriced convenience goods. Gas is only 1 or 2 cents proffit. So maybe 25 cents more than they buy it for, but then they have to factor in all the other costs of maintenance, staff, electricity, overhead, etc.
In the video she stated that it took them 10 years to save it. I would like to know what their situation was prior to that. It's all pure hard work from what I see.
P.o. French Quarter That's the operator side U should be Looking at the Stock. Corp makes billions/trillion The stock is key see the top Front of page John benjamin I break down for u.. jb.ok
Right off the bat, it's costing over $10,000 per month interest on that 1st station loan of $2.5 million. So, the first 20,000 gallons sold per week (if even attainable) goes to paying the interest on that loan. It would never survive without snacks. It's NOT a gas station. It is a CONVENIENCE STORE that sells gas. Remember that.
@@stuartstogdill2406 Not zero, but the gas profit is not what carries the store. That's why you rarely see fuel-only stations these days. They all supplement it with cigarettes, lotto, coffee, snacks and beverages.
My Grandfather owned a gas station when he was in his working years. I recall him telling me after he retired that he'd get more in cash back on his credit cards buying gas than he ever made in margin from selling it. Tough business.
I loved this episode! I'm addicted to business and continuously learning from other business owners how they do things. I've always been interested in how gas stations operate and getting the inside details was interesting. What I do love about what Parm mentioned is their deep focus on their customers. Gas stations are an "in and out" business where customers don't usually stay for long periods to the point where you can learn about them unless they come in regularly, so to see Parm and her team putting customers first and doing what they can to learn about what they want, what they need, etc is remarkable. I believe that customer experience is the key no matter what kind of business you operate in and it's great to hear other business owners prioritize that. Great video and to all of the other business owners or soon-to-be business owners out there, go after your goals and dreams and make it happen, I look forward to seeing you on one of these episodes in the future!
they are Indian and have an INSANEEEEE work ethic that most americans are not familiar with. Many Koreans have the same story owning multiple groceries, teriyakis, and gas stations. It is not glamorous nor considered "white collar" but outpays and out performs in terms of income compared to most traditional salaried jobs with little to no education or background needed. Most "americans" do not have the foresight or grit to take on challenges like running, managing, let alone owning a gas station. Good work Param, and keep going at it!
I don't usually comment on videos, especially ones where I was not looking for content such as opening up a gas station, but the UA-cam algorithm did its job, I guess. 😂 This was definitely informative and I could see myself being open to being a gas station operator/owner. This was definitely eye opening, and if I ever wanted to pursue this, at least I would have an idea of how to begin. Great content and a huge thanks to Ms. Chhokar for her candor in her overview!
What a great productive interview the vloger had with the sba owner. So comprehensive and helpful for the new generation who are coming to the business. But this interview was helpful as a general rule, but the whole concept gonna change depends on your state and the place. Because of the safety and security, nowadays and theft from the employees who work. Lot of issues with them. But anything is possible, nothing is impossible .
This is amazing. She is awesome. Thank you so much for being so open and forthcoming. This was very entertaining and informative. Her personality and outgoing nature is wonderful not to mention she seems very smart and sharp. It is not surprising they are so successful, as they treat their staff and customers with such respect and dignity.
Thank You so much for educating us. A lot to learn in this line of business. I believe for a first-time buyers, Investment is a huge factor before you start out. Thank you Paul
What needs to be hammered home is this is reflective of the best locations in populated/traveled areas. The traditional mom & pop country store is a completely different animal.
@@tCMODDER yeah but if you would’ve watched the video you would’ve heard that the million dollars came from saving for 15 years. It’s all about your mindset.
@@antonygogo1184 And if YOU watched the video you would have heard it was husband and wife contributing. A single person coming up with 1 million is near impossible.
@@tCMODDER you really thought that two working adults wouldn’t put their money together to get something they both want. You act as if they cheated or broke some unwritten rule, that’s called marriage. Like I said nothing is impossible buddy, individual people make lots of money by working hard and persevering.
Owning a gas station is one of my endgame businesses to own…a million dollar down payment tho?! My journey will be a LONG one 😢 but ima definitely still going to try 🤞🏽
But let's say you arrive from India, Afghanistan or one of those countries, so the u.s gives you a business grant you don't have to pay back. Sounds so unfair but good luck.
Go down south, some place you own the entire property for less the 250k with crazy potential, or lease the buisness, 50k+ inventory and get a kick back from gas sales that usually cover rent/lease plus some bills
Points: @10:00 Its revenue not PROFIT. So, dont get excited. 2). Profit is 20/30 cents per Gallon. 3). Most of the profit is from the store 60 % n from the Petrol pump 40%. imp she earns the mony from Truck company and that is invested here, So, pump is not for generating revenue.
Agree. I have an EV and haven’t been to a gas station nor the store within a gas station in 3 yrs. Next good move for gas stations near freeways is to build DC fast charging stations on their lots so EV owners can charge and maybe they will walk in the store to eat/buy something.
I work in Retail and most of our stores bring in $600,000 to 800,000 per week (major grocer)... After all expenses we still only make 2% profit. People need to understand that no matter what business you are in, it's a balancing act to actually make money. Things can go wrong quickly and you can have many years where you just lose money for many different reasons.
Right. I was just doing some quick math while watching this video, and I'm not sure that they are really making any money. Slim margins, lots of overhead costs, millions borrowed, multiple investors, etc. It doesn't appear that there would be much profit left over, if at all.
@@krazyjnva2up2down55 Silly remark, due to my job i have met many millionaire folks wearing plain clothes like jeans and tshirts in utilitaries vehicles if your bussiness its like this you dont want to give the wrong impression coming to your job like if you are going to a malibu party, well unless they are rich tools of course
Excellent interview and the owner was very transparent. I just wished he asked more about the franchise costs, how much of the revenue does the brand like Shell take annually?
Wrong. The majority just want to be happy in their job, if the business next door doing the same job is paying 1 dollar more a hour but they treat their staff like crap. Your going to stay with the business you're at for 1 dollar less.
I think big players like loves and shell will eventually integrate chargers as well. Tesla has its own independent chargers, but electrify America would use the existing gas station network. Thats my guess
@@inline6-b586 I agree with that. but I see restaurant/retail chains implementing chargers more because you're more likely to eat/buy merchandise during the 30min/ 1 hr charging time than to just sit at a gas station. Overall I think the gas stations won't be able to make an attractive enough push toward electric vehicles. But I personally am still interested in purchasing one. Even in Vegas on the strip it was hard to find a Tesla charger so any charger is a good charger
Fantastic interview. Recovering the investment in full in 2 years! great job. I wanted to ask if it was so profitable why did the previous owner sell it.
There's a gas station half way down that mountain that switches owners every few years. For some reason not many people get gas there, I think it's from bad signs, you could drive right by it and not even know it was there even though it's right along side the highway. I overheard the owners talking one day saying they were struggling to pay the bills and didn't know what to do. This along with the push for electric cars, not sure I'd get in the business these days.
Great video, thanks. Some people say: if you can work 8 hours for others, you can work 2 hours for yourself! Actually you would work 24 hours for yourself. It is very highly demanding job to work for yourself if you want to succeed. It is 24-hour work and not less than that, so do not expect yourself going into a vacation. The more efforts you put in the more revenue you bring out!!!!
In order to save up 1 million dollars in 15 years between the two of them, that means they each saved 2,778 monthly. They must have lived in some cheap housing or they just made a killing in the truck business. That's impressive!
thank you so much for the video, specially because you were so generous as to share all the information pertaining the ins and outs, that generosity of the owners is what will continue to keep them prosperous!
Keys to operating a successful station: 1) Dont open one in the ghetto and bad areas of town. 2) Have a good store to draw customers inside and spend on high margin items.
They can be very expensive compared to the one in ghetto yet profit generation of that in bad neighbor hood is about at the same level of other one plus less credit sale and more cash sales.
@@zojax1125 Exactly. These people don't know half of what their saying. My family runs a heavy traffic gas station in the middle of the hood. Biggest thing is customer service, no one has tried anything in the past 15 years. I think a lot of goes to the way we treat people in that neighborhood. I would take this ghetto gas station cash cow over a high income area
Nobody cares about revenue, if she's not going to talk about profits. Why not share exact numbers? I hate people that try to bloat their numbers and show off revenue but not income. $37M revenue doesn't mean anything without the split. The profits on gas is negligble. The store has a huge profit margin but the thing is, if you go get a tank full of gas for $100 or $150, you might spend $5 inside the store. They mentioned at 6:00 it's a lot of trucks and industrial which tends to be even higher gas tickets at $250-$300/tank for diesel. So it's probably 20:1 ratio from gas to store sales. So the store is probably doing at most $5M in revenue and the gas station is doing $32M in revenue. Margin on gas is about $0.15. Diesel at $4.50 means they are doing about 7M gallons at $0.15 = $1,050,000 in profit, let's say it's $1,500,000 to give benefit of the doubt. The store sales at $5M is going to be $1,500,000 in profit based on the 30% margin she talks about at 8:30 or even at 50% margin to account for higher gas profits, you're at $2.5M So $3,000,000 in net income on $37M in revenue is about < 10% profit margin which is about what I've seen on most gas stations for sale. 10% EBITDA of $37M is $3.7M on 8 gas stations or roughly $375,000 in profit per gas station. Based on the examples listed for sale below, the most their EBITDA is going to be is $3.7M. Here's a few example on gas stations for sale: www.bizbuysell.com/Business-Opportunity/chevron-gas-diesel-market-w-re/1896926/?d=L2NhbGlmb3JuaWEvZ2FzLXN0YXRpb25zLWZvci1zYWxlLw== On $3M in revenue their EBITDA was $300k. So TLDR: ON $37M, they are making about $3M on 8 gas stations so roughly $375k per gas station. I also think it's safe to assume they have a ton of debt on the properties at 60% LTV bare minimum so the debt servicing at 5% for $2M per gas station is going to be $120k if it's I/O, let's say $150k per year in debt servicing per gas station So the real take home is going to be $200k per gas station.
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Where would you go to make purchase to be an owner of a gas station ?
What's the plan when EV's become mainstream?
So in the early 80's minimum wage was like $2.35 an hour if you can imagine that & 181 gas stations took in 131 million dollars for the year & that was only 1/3 of the state 1 brand. Profits of only plus or minus 1 penny up or down on a gallon of gas. It's no surprise a 2 pk of aspirin had a Mark up of 7500%
Yeah those were some interesting times! Everything is different now!
Top seller's aspirin vitamin packs 6 pack cans soda and 3 pack cigarettes. microwave burritos ,nachos , & polish dog's average store would sell 10 to 12 gallons of gas 5000 to 7500 gallons diesel per week major cities.
This interview is GOLD to any business minded person. Thank you so much for asking the "real" questions most interviewers are afraid to ask. And also thank you to all the business owners who are willing to give you specific answers instead of vague answers.
I am not business minded tho :-(. Wish I was.
Yes, I appreciate her direct and honest answers. She's knows her numbers. That's why they are successful.
A gas station is a sinking ship. Why open something like that now. 15 years of revenue max and at some point decreasing.
It isn't though. At all. It's aimed at people who know nothing about business.
To everyone who has started or is thinking of starting their own business: *Believe in yourself and never give up.* If you can work 8 hours for someone else. You can work 2 hours for yourself.
Amazing MrBreak! Thanks for being a star player.🤩🌟⭐You are very motivating. Keep up the excellent work! 💪👍
it helps to have a high income
Do not drink Alcohol, Alcohol steals your power. Believe in power of yourself , you will become rich similar to brown people.
@@dontaskwontell3458 it sure does
@@infoupdater582 well said thanks for bringing it out
Love how you ask the questions that normally an interviewer would be afraid to ask cause it got too much into their business, but you got right in there and asked the questions i would ask if i were there. Good interview
Thank you Tahmas.😀 We try to ask questions that we feel will be informative. We're ecstatic that you are enjoying the content. Should we do another video on this industry?
@@UpFlip Yes please I've always been interested in the economics behind gas stations from the people running them. I see they dont operate like traditional franchised business having to pay a franchise fee etc. This was very good i even looked up gas stations for sale in my local area because of this. 😂
Nothing in this interview that reading a book about business wont answer you lazy fyk.
Any interviewer can ask those questions. But thank the host for answering them openly!
@@UpFlipyes
You Really are a HIGHLY SKILLED Interviewer. Great Job. The owner was Super Friendly and Transparent so that helped a lot too.
Transparent, really? You must have never worked on financials. There was very little information or details, very vague.
Yes i like how he respects their boundaries and doesnt come off as intrusive.
Is he single
This is absolutely an eye opener, my family run 7 gas stations in Nigeria, sold two in 2019 due to poor economy. Been looking to how we could bring our business to the western world and this interview really answered 70% of my questions. Many thanks for this video.
We're so happy the videos was helpful Farayola. 😀Congrats to you and your family on all your success. This is amazing. What area are you all looking to branch out to?
Nigeria is owned by Shell corporate cartel. It must be really hard to go beyond shell dictat and do what this lady has done.
bro I own a gas station this information is false. most gustation owners are very miserable. and if your part a franchise the little profit you get goes back to them
Don't come to America please.
@@sreyanshuchaterjee3962 who told you this?
This channel is truly empowering small & medium businesses and future business owners. Kudos to the entire team of UpFlip.
This content is GOLD! Rarely do we get to hear about the nitty-gritty financial details of small businesses and what makes them 'win'. This interview is outstanding!
Glad you enjoyed Brent. Thanks for the awesome feedback. How's your week going?
@@UpFlip Well, at some point today I'm going to have to stop binge watching your videos. :-D Come Monday, it's back to corporate but throughout the week I'm constantly searching for a business to acquire and learning from your videos. Very cool stuff you're producing.
Pretty sure it’s a guarantee to become rich if u own a gas station especially in a good area
But most importantly, be born to a rich family
The best business.
Knowing your customer is crucial but also supporting your employees is even more crucial. Employees are the company's front person. There are convenience marts I will not go to due to employee attitude and lack of cleanliness.
I would treat you how I want to be treated if you were my customer.
I'd be devastated if I lost your business.
I'm also a very clean person.
Cheers! 👍
No Disrespect, but when employee work and make sure money is pulled in for business in a better sense, they need something in return, opening, running, making money on a business is not crucial in today's culture, the owners are not helping hands for employees. I can send you list of more than 442 stores in this country where employees are not happy with the owner because there is not returns for employees..
@@JakeStewart1343 I'm your new manager. Go back to stocking selves on aisle 4.
@@rnhs-drr2138 something as simple as a coffee machine and drinking water would work miracles. I worked for 2 company's that didn't offer that and actually had us buy it through their own vending machines
employees can make you or break you.
Nice to see how Parm was very upfront and honest with all the information regarding her business. Great video.
Thank you Strauss. Many others enjoyed this video as well. 😀Do you think we should have this business owner back on the channel for a follow up?
Yes@@UpFlip
Amazing how open , honest and comprehensive this is ... I have no interest in buying or owning a gas station or any property but this was a pleasure to watch just from pure information and understanding of the sector. Thank you to the owner and to the interviewer ..... Mega BrainFood
How can I help someone help me get money
It is a very profitable project, especially here in my country, Morocco
@@كنمعالله-ح6ل Just a fellow Moroccan passing by and confirming how true this it .
Owning a gas station runs the risk one of your employees getting shot and killed during a robbery.
@@WW3_Soon only in America
Great episode... I worked at Am/Pm for 6 years. The case of beer, cigs, had set prices & the 20oz sodas were pretty much locked in too. The profits came from the fountain drinks which is around 80% profit margin and the carwash since I'm here in CA. Really enjoyed this one.
Hi Sideways! Thanks for the insight. This is good information. 😀
I guess Car wash Must be 'Bikini Car Wash ' 😁😁😁
This is true! In our business class we were taught the majority of profits in a restaurant don't come from the food but the drinks they sell. I guess the rule applies to a gas station as well.
My acid reflux disease and fat stomach made me stop drinking pretty much anything but almond milk and water. As for washing the car, I put on a rain coat and go out in the rain with a sponge and wipe off the dirt.
@@crand20033 🤣
Honestly, this is the best interview ever. The interviewer was outstanding, and the owner was so nice and kind to share her knowledge. Kudos 🙏
As a prior gas station owner(Amoco/BP) I didn’t have a choice on my hours of operation. It was specifically stated in the contract that the station must be open 24/7/365. The only exception was if the town would not allow it.
Wow Carlos! I'm sure that station kept you busy. It all depends on location, type of purchase, franchise, privately owned, etc. What industry are you in now?
Was it worth it?
@@method341 from a financial perspective, not at all! When you factor in the stress that comes along with being opened 24/7/365 and the minimal amount of revenue generated between the hours of 12-6 am, it ends up being a total loss.
@@carlosaracil7980 thanks for your honesty. I hope you are in a more lucrative business now.
@@carlosaracil7980 Was your location a factor? Was the station in a city or a suburb?
This interview videos are quite better than what mainstream channel produces.
Big thumbs up for hitting majority of business aspects of gas station business in your questions.
Thanks Parm for being very open and honest about your numbers. It really helps those trying to decide. Saves thousands that we would've paid consultants. God bless you and your business.
Damn bro covered almost everything, your basically ready to marry the business! Great interview, questions and quality content.
Parm knows her stuff inside and out. From running 8 locations to intricacies of costs of pump inspections to inside sales. I need her running my business!
@Jorge Jorge 8 stations Buddy, (eight) gross revenue per year across all stations…
@Jorge Jorge if you listened to the entire episode you’ll know that these were excising stations already generating hefty sales numbers, they improved and increased that number in three years…
@Jorge Jorge I appreciate the feedback, go troll someone else 🙏 go do something with your knowledge and make some money 💰
@Jorge Jorge I don't think you understand sales revenue vs profit. They could most definitely be doing 37M in sales (think the GAS in gas station). Of that, they will have some markup that is their profit from the gas. Let's do some simple math. Take 4000 gallons sold per day (a number I found in google for an avg flow for a gas station in the US). at 3.50/gallon. 14K/day/store. 8 stores @ 365 days = 40.8M/year revenue from gas alone. Let's add 7% markup for profit. 2.86M for income. That's only the gas income, not inside sales. Now add expenses for the tanks, staff, utilities, taxes and you get the net profit. From the description: "$37 million in yearly revenue"
@Jorge Jorge Ok so you still don't understand basic accounting terms. Revenue is basically all money taken into the business (accounts receivable). Expenses is all money spent to run the business (accounts payable -- like paying for the gas in the tanks, payroll, etc). Profit = Revenue - Expenses. Running a high revenue is a big deal even if you only profit a fraction of that. You're still running financial books moving many times in cash flow than the actual profit.
This man asking all the right questions, and the owner answered so openly with full of useful infos. Probably can’t afford one in the future but I really did enjoyed this video.
Glad you liked the video, Luong! Have you checked out our other videos?
I am the 3rd generation in a family business engaged in the gas station business, currently we manage 12 gas stations located in Sulawesi, Indonesia.
Awesome!💘 We're glad this video was relatable to you. Any advice for new gas stations owners or anyone looking to invest in the industry?
@@sam-ci8lz Not every comment is supposed to be helpful.
Personally it was interesting for me to know it can last generations.
@@sam-ci8lz you sound bitter af
How much profit per year?
I like how you interview people and industries that you would necessarily think about. Thanks! Very insightful.
You'll love the topics we have planned for this year ;)
@@UpFlip do you have interview with a plumber?
You should do a video on trucking businesses. Average 15-25% profit paying a driver, each truck grossing about $280-350k a year in total revenue. Love your videos!
Hi everyone, thanks for watching this video. Few of our viewers had some questions about taxes and wages. I would like to let everyone know that every business here in the USA has to pay taxes whether you are a US citizen or not. Second, when the video was done the minimum wage in our county was $13.69, our new hires started at $15-$16 an hour plus gas cards. The wages are increased after 3, 6 and 12 months of performance review.
Thank you Parm for clarifying 🙏
Thank you Paramjit!
Do you take feedback from your team to seek improvements since they are the one running day to day?
Are you willing to partner with us...in AL?
@Luxe Aux stop it
$37m sounds like a lot of money but remember it’s the revenue. The billion dollar question is what is the profit margin. Some businesses makes a lot of revenue but their cost of goods and fixed cost eats up most of that and left only a meager amount for profit or even worst, running at a lost...
Probably a 10-15% net
If she is making 20-30 cents per gallon and you know 40% of revenue is from gas after all the calculations you get a figure of around 800k profit from gas alone which accounts for 40% she probably makes 2 Mil a year give or take plus you can't forget all the partners ect.
Guys, remember, when you calculate net profit, it doesn’t just include cost of goods, ie cost per gallon or goods in the retail store, you need to consider the fixed cost too, ie property cost, employees, utilities and all other cost to operate the business. That is one major mistake a lot of business owner makes...
She already answered this 40% on gas and 60% on goods. You people don’t listen.
even if its 5%, theyre clearing almost $2 mill.
I love this interview he is asking all the right question’s and the lady is answering it straight forward.
Thank you so much for this
Except for the key question !! What is your net profit … as opposed to revenue!
And except for saying they have no security issues. Right.
Gas sells itself if the price is right. The margins though are slim. It's the convenience market that makes the money. So it's all about the location because you want a site with a lot of "pass-by" traffic.
Location is definitely important! We appreciate your feedback! 😀
Location location location!!
Exactly!! My BF used to run a fast station and he said ALL their profits came from their hot bar and items in the store.
Great video! Location is definitely key. What really has killed some businesses though were larger convenience stores opening nearby. There are 2 gas stations within 2 miles of my home that have closed when a dollar general and a RaceTrac opened up close by.
Thanks for your insight respinoza89.
That's the thing big businesses eat small ones.
That’s how a corporatist society works. It’s so much harder for small businesses to start up because already established business can suddenly just open up nearby and then boom.. your business does not blossom
Walmart would open up in small city and kill all small stores then money would dry up abd walmart would close after # of years.
Dollar general is a killer.. all money goes to same owner u never see or any chance to meet ever.
I am from Chad and I am presently pursuing my Master's degree in management the U.S. I just discovered this channel and must confess that I am learning more from this channel than in my Business classes. So practical and in tune with reality.
This channel is literally a gold mine
Thank you Daren. We're glad you find the information valuable. That's one of our primary goals. 😀
You must not know what literally means or a gold mine
@@BBMoney007 Exactly! "Literally" has been misused and abused so much it has literally lost it's meaning.
@@BBMoney007 Lol, CONTEXT is everything Professor
@@kyhermit only lost it's meaning to the uneducated
Not wanting to be contrarian but I understand most gas stations are barely hanging on.
Margins on fuel alone are so small they are not enough to keep the doors open.
If u get lucky with a location I am sure it can work out well.
But for years for example Exxon gas station owners have been complaining to Exxon that the same money simply invested into Exxon stock rather than a gas station and then doing nothing would have made them more money at no risk than buying a gas station and investing the 80 hour work weeks they have as gas station owners.
Tremendous questions! Very very well informed and added elaboration when needed.
The owners have several family members involved , contributing investment and time, to running the gas stations they own. This is why you see South Asians and Middle Eastern ethnicities dominating this industry, because white and black people don't typically have extended family and relatives all coming together to start a business. Generally speaking Asian and Middle Eastern cultures will sacrifice individual needs for the good of the family and group.
Pretty cool. Smart. Partnerships do have pitfalls however, especially involving family. Some cultures must be innately better at handling these conflicts. Good for them.
They're hard workers and don't want to shame their families
@@ikhbjhbkm5 that’s exactly right…
Maybe it's not necessarily a black and/or white thing, but it's a Western or American thing, versus an Asian or eastern thing.
Its also a developmental thing. Often new immigrant groups stick together, then their children and grandchildren go their separate ways. English, German, Irish, Italians all the same pattern in the past.
As a gas station owner thanks for shedding light in the industry.
Thanks for watching Nimo!😀 We want our videos to be relatable. How long have you been in the industry?
@@UpFlip
My wife of 20 years parent's own a gas station since 1980, we now run it/profit share.
I was going to suggest a way to get more business is to have an auto repair shop.
This is the key for our gas station, we have a great reputation, it's always busy.
We are not big on sales of canady/pop/food/lotto tickets, to much work, not enough profit.
Great chanel, I subscribed
@@nimo6972 what about gas profits? How is that working for yall?
@@nimo6972 start owning charging stations as well, it's the future.
We have been successful in reducing the credit card merchant processor fees. We have had a few gas station clients before who were successfully able to save on their CC processor fees because of our expertise. There’s no upfront fees. Would you like to connect?
Awesome Video!
Great interview, appreciated the direct practical questions asked by the interviewer and the honest detailed answers given by the store owner.
Very cool and transparent owner. I’m curious what they do about brands they don’t sell a lot of. What happens with expired items, how they decide whether it’s a product still worth showing on a shelf, how they go about replacing that product with something else that will sell better.
I’m curious if they’re Hindu or Muslim , hard to tell with these dark faces
@@Pyongyang4948 I think their Sikh
@@masculinitymentor thanks hard to tell with “these” people
Most Vendors give credit for expired items. And they will replace product if it's not selling. And there's alot of companies that will go and promote their products.
@@Pyongyang4948 why does it matter, there people just like the other 7 billion.
37 million over the 8 stations combined seems like a crazy amount at first, but break it apart. Let's use averages: 37 million (gross) between 8 stations is about 4.5 million per year each. If you use their average profit margin of 50%, each station takes in 2.25 million a year. That's about 187,000 per month. Now they have to pay off their loans, pay mortgage on stations, pay utilities, snow removal, garbage collection, liability insurance, pay sales tax, pay employees (I'd guess at least 8 per station on different shifts) and pay themselves. There's 8 partners that all want a piece. That money shrinks quick. Still a good business though.
Yes, the number I'm curious about is the profit.
Too much math, simply put at 10% profit margin puts them at 3.7 mill a year. 3.7 mill over 8 ppl is about 462.5k a year for each person, beats working in any industry. 10% figure is very conservative too.
@@terencelee7868 I guess math wasn't your strong subject. Your method is so oversimplified that it isn't accurate.
@@ruffxm meh, I disagree. That quick math using 10% is a good starting estimate for a UA-cam “P&L” breakdown. More often than not, it’s exactly what Wall Street bankers do when they assess a company’s EBITDA over a drink at the bar. Then if the baseline numbers seem enticing, they have the analyst start doing due diligence on the full P&L.
@@terencelee7868 no it isn’t. I’m an accountant who has seen a lot of petrol station books. Never seen 10% net profit, not even close
Very good interviewer and very good interviewee.
Parm is very open about her business. She really is an amiable person. No wonder their business is thriving. Good job!
I have a friend who’s family owns just one station here in nyc and they do very well. The most important factor BY FAR is location.
She and her team have done an amazing job I think if she was to look for investors for expansion people would invest in her
Thanks for watching Muhammed. We think she's great also and so are you.😀
Muhammed don't be silly...this is clickbait. the real numbers are normal numbers.
This is one of the best interviews I have ever seen Ms parm bhullar has a great business personality everything she said in this video is 100% correct anyone who is looking to get into gas station business this tells lot of information thank you for this video.
Thank you for watching!😀😁👍
The most in depth and transparent interview, I have ever watched. Incredible jobs, keep going
Thank you Hunter!!😁🤩We're so glad this video was informative to you. That's one of the primary reasons for this channel. Stay tuned for more great content and have a wonderful week. 👍⭐
I felt like I was talking with the Gas station Owner since the Presenter covered all my burning questions. Thank You so much!
Excellent, I very much enjoyed watching this video. Great work by the Host Paul and it was Super Nice of Parm Bhullar to sharing her Knowledge and Information. Thank you very much to both of you.
We're glad you enjoyed Karthik!😀😁We appreciate your wonderful feedback.💖⭐ What's some other businesses you'd like to see on the channel?
Several thoughts
1. Great topic, well thought of questions and the guest is clearly a strong business person.
2. I agree with the other comment that I would like to know the separation between gas and store sales.
3. So this family started with one gas station in 2019 and now they own 8? Even with 50% decrease gas sales during the pandemic?
4. Bravo to the American immigrants from India. Their hard work and family team work clearly show positive results. You do not see 2nd generation and older America families willing to get into hard business such as gas stations and work together as a family team.
I'm from Italy and this may not be relevant here.. margin on gas is low even if it was down 50% ( only for 2 months) not a big difference.. gains are made with everything else (shop,carwash or food).. employees salary,taxes and bills are high plus the debt to get in.. I can see her struggling to pay everything. 8 stations is serious debt.. It's a great bussiness model from Shell's part but not from her
@@MrTrdsmi yep, I doubt profit is more than $350k on that revenue
@@brentlloyd7908 350k for the entire team or for each person? I wish we could know the yearly revenue. But yea, I feel like a lot of debt is involved.
Dude, those Indian families have heavy connections in the Oil Industry. These aren’t normal everyday Indians opening up gas stations lol. Not that I’m knocking them but it’s extremely naive to think they are coming from rags to riches
This is mostly a retail business with a gas station just to bring people in.
I was trying click on a different UA-cam video and I clicked on Upflip advertisement..this is the best mistake I have ever made..I have been binge watching your videos..extremely educational and informative..I love it!!! You got yourseld a new subscriber !!!
Thank you for a great interview on a business I have no knowledge about. I am thankful Barm was very open to give information about her business. She seems very friendly, knowledgeable and kindly gave all the information UpFLip asked her.
Thank you for watching and providing such wonderful feedback! 😀You're the true MVP.💪👍 This was a great interview. Please stay tuned for more amazing interviews.
I love your videos, guys.You ask all the questions that both I would have wanted to ask, and those I would have thought of but maybe after the interview, and it would have already been to late to ask. Keep these videos coming!
Can't lie I cringed a few times when I heard him ask certain questions but the owner didn't hesitate at all to answer the questions
My most Sincere appreciation .
It only confirms that customer service is huge and what husband/wife unity can achieve.
Great interview! I've always wondered about gas station owners and how they operate! Another unique business! Thanks!
Awesome Kaijaful! We're glad you enjoyed the video. The gas station business can be very interesting. What's some other businesses you'd like to see on the channel?
@@UpFlip owning and operating an airport! My cousin went up north made some friends and one of them, her parents own banks, hospitals, and airports.
@@JayLupe airports??!! Not even airport (1). I'm guessing the ones for the smaller or private planes
First time on this channel. Great episode. From the editing, b-roll footage, interview skills, etc it’s all perfect. I’m very surprised you only have 444k subscribers. You definitely deserve 2-3million. But it will come. That’s the great thing about UA-cam, hard work pays off. I can attest to that from my channel. Cheers 🍻
Kudos to the interviewer. Every time I wondered about something, you managed to ask a question that will answer my question. Now this woman knows her business; every question is answered clearly without hesitation
Great interview. Great questions and I like how honest she was. She answered everything.
Great video! I own a health food store, retail is hard, especially when it comes to food with expiration dates... they seem to be doing it well.
Congrats Brian! This is wonderful! Yes, business can be hard at times, but it also can be rewarding. 😀How long have you been in the health food industry?
@@UpFlip 7 years. I've been very fortunate, my store has done incredibly well.
8:20 people not in the industry probably don't know that your gas "brand" and convenience store "brand" are typically two separate franchising options and brands. For example here, they're branded Arco gas but not AM/PM (in-store franchise brand). If you are AM/PM branded, they will require you to carry certain products and many products will need to be priced at a specific MSRP.
Love this channel ive always wondered what it would take to run a gas station!
Not easy would be the answer
Wow, one of the most honest and eye opening videos for properly investing. Subbed
Thank you Daniel and Welcome! 😀We have more great content coming your way.👍
This interview was a game changer for me ... This is not your typical gas Station and Gas Station Owner ... Your Interview was simple Amazing !!!! Love the structure of it and how seamlessly you let her flow through the interview.
I'm glad to hear that you found the interview so impactful! It's always great to see interviews that go beyond the expected and offer valuable insights. 🙏
Yet another great episode Paul!
To succeed in Gas Station Business you must choose the location which gives you traffic. Like something close to an Air base (or factory area as she said) Constant flow of customers not only increase sales but help reduce robberies and break-ins too "))
Lower gas prices guarantee high inside sales. You make less profit on fuel but more on In-store sale.
30% store profit is not a lot, compare to 40% as a norm as far as I remember.
Then you have to have a great customer service, customers will make sure to return if you treat them well, know them by their names, a quick chit-chat makes a huge difference.
A well lit and well maintained gas station gives a sense of security to customers compared to a dark or dingy ones.
Not to forget the clean toilets!
It takes a huge efforts to keep it clean but customers will always appreciate it and buy something in return! 😉
Thanks do you own a store?
I manage a 16 point gas station company in Portugal and this is pretty accurate 👌
@@GoncaloASilvaThanks Gonçalo!
@@youngatnaruto No I don't..!
and far away from a Costco gas station :-)
This is the first ever UA-cam channel that shares to people about real business knowledge.Great great channel.Keep Up the Super Work 😘😘😘🧠
From Sri Lanka
We appreciate that Toon Thinker😍😍We're so happy you like the channel. Any business content you'd like to see on future videos?
I own multiple 711 gas stations in austin tx. And I can tell you it is super rewarding.
How much profit per station?
@@asakurayoh3909 depends on sales and expenses.
Great video. I own a neighborhood convenience store and this video makes me wish it was a gas station in a major intersection.
Thank you Sergio! We appreciate your feedback. Do you see any similarities with the gas station and convenience store business?
@@UpFlip yes, very similar. 100 percent customer service and having everything stocked with the right merchandise. Financial services like money transfers and bill payments is also a good idea.
Always asking the right questions. Good on you.
*This incredibly enterprising family epitomize the "American Dream." Bravo to them and may they enjoy continued prosperity.*
Take notes. Everyone in the family is focused on who and what is important. I wish all families were like that.
Absolutely these are things I wish my family and friends could implement because that’s why they come here and live the dream they understand and practice group economics.I WANT TO TEAM UPWITH SOME FOLKS OF OTHER RACES THAT PRACTICE OPERATING LIKE OUR JEWISH BROTHERS AND SISTERS SO WE ALL PUTIN AND BUILD TOGETHER SO WE ALL CAN IT JUST DOING IT LIKE THE MOST HIGH GOD GAVE FATHER ABRAHAM THE BLUE PRINT AMEN!IF INTERESTED HIT ME BACK!🙏🏿😇🤔😌🥰💰💰💰💵💵💵💸💸💸📡📡📡☺️☺️😉🇺🇸🇺🇸🇺🇸🇺🇸💯💯
Great episode! I wish you went over the financials more. Revenue is there but I want to know the breakdown of profitability from each part of the business... how much revenue is actually coming from the sales of fuel vs the rest of the operation?
About 25 cents at least from each gallon of gas but right now most stations in California are 40 cents +. And then about 20-35% profit margin from store sales. That should be about average. As far as fuel vs store, it really just depends on each station. If they got 8 gas stations, absolute minimum daily profit should be around 10k. God I wish I was making 10k+ a day lol
@@rioaxjenjsndbejs3613 If you don't mind sharing, where are you getting these numbers from?
@@tomaszs1243 Yeah, years ago I heard that gas stations don't make much money on gas, it's all on the overpriced convenience goods. Gas is only 1 or 2 cents proffit. So maybe 25 cents more than they buy it for, but then they have to factor in all the other costs of maintenance, staff, electricity, overhead, etc.
@@rioaxjenjsndbejs3613 this is absolute bullshit. Gas stations up charge a gallon of gas by about 15c and their profit is about 2c
Really? I was uncomfortable for her and those partners, everytime he asked for more granular information regarding cost/ profit / amount. 🥴
As a current owner this is spot on. I've been in the business for over 20 years and looking to sell my gas station asap.
Why?
How to get into the gas station management/ownership game.
Step 1: Get a million dollars.
Step 2: Oh... never mind.
if you manage to loan a million dollar then chance of to be a millionaire is so close and also the risk is huge
Don't be fooled. There's gas stations selling less than half that in some towns
In the video she stated that it took them 10 years to save it. I would like to know what their situation was prior to that. It's all pure hard work from what I see.
P.o. French Quarter
That's the operator side
U should be Looking at the
Stock.
Corp makes billions/trillion
The stock is key see the top
Front of page John benjamin
I break down for u..
jb.ok
@@graemeclarke3027 you don’t know indians
Right off the bat, it's costing over $10,000 per month interest on that 1st station loan of $2.5 million. So, the first 20,000 gallons sold per week (if even attainable) goes to paying the interest on that loan. It would never survive without snacks. It's NOT a gas station. It is a CONVENIENCE STORE that sells gas. Remember that.
Stations make ZERO profit off the fuel... it is not paying for anything.
@@stuartstogdill2406 Not zero, but the gas profit is not what carries the store. That's why you rarely see fuel-only stations these days. They all supplement it with cigarettes, lotto, coffee, snacks and beverages.
a Campbell go to the top
Beginning of this page
It the corporation making the billions
Trillions Not the operators/owners
Franchisee..
jb.ok
20k a week is not that great especially if it's a store around the size of the video.
@@stuartstogdill2406 that's just wrong. Flat out. At the very least it will pay rent and expenses
He asked all the right questions, and she had all great answers. 👍
Great questions asked, and great answers given. Well done on both sides!
Thank you Philip! We're glad you enjoyed the video. What some other type of content you'd like to see in future videos?
My Grandfather owned a gas station when he was in his working years. I recall him telling me after he retired that he'd get more in cash back on his credit cards buying gas than he ever made in margin from selling it. Tough business.
Hi Code! This is interesting. Would you consider opening a gas station based on what your grandfather told you?
I loved this episode! I'm addicted to business and continuously learning from other business owners how they do things. I've always been interested in how gas stations operate and getting the inside details was interesting. What I do love about what Parm mentioned is their deep focus on their customers. Gas stations are an "in and out" business where customers don't usually stay for long periods to the point where you can learn about them unless they come in regularly, so to see Parm and her team putting customers first and doing what they can to learn about what they want, what they need, etc is remarkable. I believe that customer experience is the key no matter what kind of business you operate in and it's great to hear other business owners prioritize that. Great video and to all of the other business owners or soon-to-be business owners out there, go after your goals and dreams and make it happen, I look forward to seeing you on one of these episodes in the future!
they are Indian and have an INSANEEEEE work ethic that most americans are not familiar with. Many Koreans have the same story owning multiple groceries, teriyakis, and gas stations. It is not glamorous nor considered "white collar" but outpays and out performs in terms of income compared to most traditional salaried jobs with little to no education or background needed. Most "americans" do not have the foresight or grit to take on challenges like running, managing, let alone owning a gas station. Good work Param, and keep going at it!
Most Americans don't have a million dollars lying around.
@@letsgocapsbeatpens doesnt take a million to open your own small business, just loans, sweat, and effort.
I don't usually comment on videos, especially ones where I was not looking for content such as opening up a gas station, but the UA-cam algorithm did its job, I guess. 😂 This was definitely informative and I could see myself being open to being a gas station operator/owner. This was definitely eye opening, and if I ever wanted to pursue this, at least I would have an idea of how to begin. Great content and a huge thanks to Ms. Chhokar for her candor in her overview!
What a great productive interview the vloger had with the sba owner. So comprehensive and helpful for the new generation who are coming to the business. But this interview was helpful as a general rule, but the whole concept gonna change depends on your state and the place. Because of the safety and security, nowadays and theft from the employees who work. Lot of issues with them. But anything is possible, nothing is impossible .
This is amazing. She is awesome. Thank you so much for being so open and forthcoming. This was very entertaining and informative. Her personality and outgoing nature is wonderful not to mention she seems very smart and sharp. It is not surprising they are so successful, as they treat their staff and customers with such respect and dignity.
Thank You so much for educating us. A lot to learn in this line of business. I believe for a first-time buyers, Investment is a huge factor before you start out. Thank you Paul
Paul is a middleman .......looking to sell a 80K gas station at 200K. Do ur research ........... Never trust anyone in business.
What needs to be hammered home is this is reflective of the best locations in populated/traveled areas. The traditional mom & pop country store is a completely different animal.
This is what happens when you have drive and are determined in life regardless of where you come from.
Yes JB. It's in us all. 😀💪💖
And if you have $1 million dollars...lmfao
@@tCMODDER yeah but if you would’ve watched the video you would’ve heard that the million dollars came from saving for 15 years. It’s all about your mindset.
@@antonygogo1184 And if YOU watched the video you would have heard it was husband and wife contributing. A single person coming up with 1 million is near impossible.
@@tCMODDER you really thought that two working adults wouldn’t put their money together to get something they both want. You act as if they cheated or broke some unwritten rule, that’s called marriage. Like I said nothing is impossible buddy, individual people make lots of money by working hard and persevering.
Owning a gas station is one of my endgame businesses to own…a million dollar down payment tho?! My journey will be a LONG one 😢 but ima definitely still going to try 🤞🏽
God bless you
But let's say you arrive from India, Afghanistan or one of those countries, so the u.s gives you a business grant you don't have to pay back. Sounds so unfair but good luck.
Trippy, I never once said “I wanna be a gas station owner” but now, maybe I do
Go down south, some place you own the entire property for less the 250k with crazy potential, or lease the buisness, 50k+ inventory and get a kick back from gas sales that usually cover rent/lease plus some bills
I believe in you.
Points:
@10:00 Its revenue not PROFIT. So, dont get excited.
2). Profit is 20/30 cents per Gallon.
3). Most of the profit is from the store 60 % n from the Petrol pump 40%.
imp she earns the mony from Truck company and that is invested here, So, pump is not for generating revenue.
I can listen to her over and over again.well done
you should have asked about their views on the electric car market and how they see the business changing in the future
Agree. I have an EV and haven’t been to a gas station nor the store within a gas station in 3 yrs. Next good move for gas stations near freeways is to build DC fast charging stations on their lots so EV owners can charge and maybe they will walk in the store to eat/buy something.
Thanks for the feedback! How do you think the gas station industry will have to adapt? More charging stations?
I work in Retail and most of our stores bring in $600,000 to 800,000 per week (major grocer)... After all expenses we still only make 2% profit. People need to understand that no matter what business you are in, it's a balancing act to actually make money. Things can go wrong quickly and you can have many years where you just lose money for many different reasons.
Right. I was just doing some quick math while watching this video, and I'm not sure that they are really making any money. Slim margins, lots of overhead costs, millions borrowed, multiple investors, etc. It doesn't appear that there would be much profit left over, if at all.
@sean newman They ain't exactly dressed in LOUIS VUITTON or pulling up in French Bugatti are they lol?
@@krazyjnva2up2down55 Silly remark, due to my job i have met many millionaire folks wearing plain clothes like jeans and tshirts in utilitaries vehicles if your bussiness its like this you dont want to give the wrong impression coming to your job like if you are going to a malibu party, well unless they are rich tools of course
Now YOU SPEAK TRUTH. EVERYTHING THAT SHINES IS NOT GOLD!
Excellent interview and the owner was very transparent. I just wished he asked more about the franchise costs, how much of the revenue does the brand like Shell take annually?
Bottom line. Pay employees a great wage and they’ll never leave. Nothing else matters to a worker no matter how you treat them
Wrong.
The majority just want to be happy in their job, if the business next door doing the same job is paying 1 dollar more a hour but they treat their staff like crap.
Your going to stay with the business you're at for 1 dollar less.
Would have been interesting to know the owners opinion on the impact of electrical vehicles on this type of business in the future.
I think big players like loves and shell will eventually integrate chargers as well. Tesla has its own independent chargers, but electrify America would use the existing gas station network. Thats my guess
@@inline6-b586 I agree with that. but I see restaurant/retail chains implementing chargers more because you're more likely to eat/buy merchandise during the 30min/ 1 hr charging time than to just sit at a gas station. Overall I think the gas stations won't be able to make an attractive enough push toward electric vehicles. But I personally am still interested in purchasing one. Even in Vegas on the strip it was hard to find a Tesla charger so any charger is a good charger
Thank you for this interview. Very insightful.
Fantastic interview. Recovering the investment in full in 2 years! great job. I wanted to ask if it was so profitable why did the previous owner sell it.
Oops
@Damien Lavizzo thanks for the insight...very valid.
@@bwsandy
Those owners have 3.5million in the bank and don't have to do another days work
@@Robert-cu9bm absolutely! Fully agree...never realized that
How much do they make yearly? 500k/year but that is divided upon every owner/partner of the business no?
They forgot to mention that the key is to accept cash and avoid paying tax :)
This was a great review and I love her honesty so we can understand the inner working of a gas station owner ..thank you
There's a gas station half way down that mountain that switches owners every few years. For some reason not many people get gas there, I think it's from bad signs, you could drive right by it and not even know it was there even though it's right along side the highway. I overheard the owners talking one day saying they were struggling to pay the bills and didn't know what to do. This along with the push for electric cars, not sure I'd get in the business these days.
Thanks for watching The Hardwick😀👍. Advertising can play an important factor for a business. What type of business would you invest in?
Great job on the interview, keep up with the good work, and thank you for doing this videos they are very informative.
Thank you Mynor. You're great! 🌟What's some topics you'd like us to cover on future videos?
Great video, thanks. Some people say: if you can work 8 hours for others, you can work 2 hours for yourself! Actually you would work 24 hours for yourself. It is very highly demanding job to work for yourself if you want to succeed. It is 24-hour work and not less than that, so do not expect yourself going into a vacation. The more efforts you put in the more revenue you bring out!!!!
In order to save up 1 million dollars in 15 years between the two of them, that means they each saved 2,778 monthly. They must have lived in some cheap housing or they just made a killing in the truck business. That's impressive!
Thanks for watching.😀
Truck business is very lucrative
Family comes from money.
Trucking is a lot of money you can make 35-45k gross from one truck with 2 you can make 10k profit from the other one with paying the driver
@@jaskamal99 are you saying Monthly? normally a truck grosses $200k a year
Being a gas station owner it's cool to see you shedding some light on the industry. Keep it up!
Thank you Jay! We appreciate your feedback. 👍 How long have you been in the industry?
U are not a gas station owner lol stop lying
@@razzta4629 how do you know..lool😂🤣
@@razzta4629 everybody on the internet lies, every single person
@@X11CHASE Even Fuici ?
thank you so much for the video, specially because you were so generous as to share all the information pertaining the ins and outs, that generosity of the owners is what will continue to keep them prosperous!
Keys to operating a successful station: 1) Dont open one in the ghetto and bad areas of town. 2) Have a good store to draw customers inside and spend on high margin items.
They can be very expensive compared to the one in ghetto yet profit generation of that in bad neighbor hood is about at the same level of other one plus less credit sale and more cash sales.
@@fsx0567 You lose all that profit and workers when they get robbed and shot
That doesn’t happen in every hood. Stop the bs
How to say you’re a pos white supremacist without actually saying you’re a pos white supremacist.
@@zojax1125 Exactly. These people don't know half of what their saying. My family runs a heavy traffic gas station in the middle of the hood. Biggest thing is customer service, no one has tried anything in the past 15 years. I think a lot of goes to the way we treat people in that neighborhood. I would take this ghetto gas station cash cow over a high income area
Nobody cares about revenue, if she's not going to talk about profits. Why not share exact numbers? I hate people that try to bloat their numbers and show off revenue but not income.
$37M revenue doesn't mean anything without the split. The profits on gas is negligble. The store has a huge profit margin but the thing is, if you go get a tank full of gas for $100 or $150, you might spend $5 inside the store. They mentioned at 6:00 it's a lot of trucks and industrial which tends to be even higher gas tickets at $250-$300/tank for diesel.
So it's probably 20:1 ratio from gas to store sales. So the store is probably doing at most $5M in revenue and the gas station is doing $32M in revenue. Margin on gas is about $0.15. Diesel at $4.50 means they are doing about 7M gallons at $0.15 = $1,050,000 in profit, let's say it's $1,500,000 to give benefit of the doubt.
The store sales at $5M is going to be $1,500,000 in profit based on the 30% margin she talks about at 8:30 or even at 50% margin to account for higher gas profits, you're at $2.5M
So $3,000,000 in net income on $37M in revenue is about < 10% profit margin which is about what I've seen on most gas stations for sale.
10% EBITDA of $37M is $3.7M on 8 gas stations or roughly $375,000 in profit per gas station. Based on the examples listed for sale below, the most their EBITDA is going to be is $3.7M.
Here's a few example on gas stations for sale:
www.bizbuysell.com/Business-Opportunity/chevron-gas-diesel-market-w-re/1896926/?d=L2NhbGlmb3JuaWEvZ2FzLXN0YXRpb25zLWZvci1zYWxlLw==
On $3M in revenue their EBITDA was $300k.
So TLDR: ON $37M, they are making about $3M on 8 gas stations so roughly $375k per gas station. I also think it's safe to assume they have a ton of debt on the properties at 60% LTV bare minimum so the debt servicing at 5% for $2M per gas station is going to be $120k if it's I/O, let's say $150k per year in debt servicing per gas station
So the real take home is going to be $200k per gas station.
Good Job!! Very realistic.
God bless this guy and the lady for sharing this practical experience.