How Do Gas Stations Really Make Money? We Take a Look...

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  • Опубліковано 12 гру 2024

КОМЕНТАРІ • 77

  • @TheBreakdownWithLuke
    @TheBreakdownWithLuke  3 роки тому +2

    Like this video? Checkout our video on how Golf Courses make their money here: ua-cam.com/video/TjyeHIECa7I/v-deo.html

  • @Roq-stone
    @Roq-stone 3 роки тому +66

    A gas station is seen as a refuge stop. The restroom attached to gas station is the single most important feature of a gas station.

    • @wellsilver3972
      @wellsilver3972 3 роки тому

      I remember going to a gas staton and needing to pay 10 dollars to use the restroom.

    • @Roq-stone
      @Roq-stone 3 роки тому +1

      @@wellsilver3972 Ohhh gosh! Sorry. But I know why they put that system in place though. Some persons think the whole room is the toilet. Lol.

    • @Roq-stone
      @Roq-stone 3 роки тому

      @@user-yh9oy2vz5z 😆

    • @richardshufflebottom4011
      @richardshufflebottom4011 2 роки тому

      I like taking a big ole shit there before I go home

    • @Roq-stone
      @Roq-stone 2 роки тому +4

      @@richardshufflebottom4011 I hope you treated the place with respect and washed your hands. If someone else left a mess you wouldn’t have had such a “pleasurable” experience to be broadcasting it on the internet.

  • @MrBrunohrd
    @MrBrunohrd 10 місяців тому

    The best analysis I saw about the topic. Great video.

  • @toddwieland7664
    @toddwieland7664 3 роки тому +9

    The food is carnival and we are adults that need healthy eats
    No Saran Wrap, no pizza, corn dogs, etc. road nutrition is a nationwide crisis

  • @The-Real-Kevin
    @The-Real-Kevin 3 роки тому +19

    I deliver fuel and it floors me when I talk to shop owners that are taking a loss on the fuel aspect of their business and are just relying on walk in grocery sales for any profit.

    • @ballstothewall38
      @ballstothewall38 2 роки тому +5

      Don't feel bad for them, they can retire selling Energy drinks alone without even taking into consideration the other 1500 products they sell. My neighbor has a QT, he says while gas is not the money maker he can pay himself and his employees with Alcohol sales alone. Gas station owners are filthy rich, especially if they are from India.

    • @Elin-Esteem84
      @Elin-Esteem84 2 роки тому

      I haul gas too! I'm looking into buying one or two.

    • @mdjamaluddin1372
      @mdjamaluddin1372 2 роки тому +2

      @@ballstothewall38 just let u know ..there is no profit on alcohol ,tobacco and cigs too !!..they are also for customer convince!!!

    • @fazapops
      @fazapops 2 роки тому +2

      @@ballstothewall38 I've been financing gas stations for 20+ years. Gas stations owners are NOT filthy rich. Some of them do well, for sure. No idea how you define rich.

    • @thething5425
      @thething5425 Рік тому

      @@fazapopshow much would one make on a highway?

  • @richardwarren7492
    @richardwarren7492 2 роки тому +4

    Interesting. 1970 (my first business) Arco station - gas price 40.9 a gallon on premium (most common type sold then) gross profit per gallon? .08 cents (average station back then 1,000 gallons a day) Gross profit per day 80 dollars. Rewards? Back then, Green or Blue Chip stamps (sometimes 3 times or as much as 10 times purchase) Maps from the company? 10 cents sold for 50 cents. Oil 50% gross profit. Backroom? Usually 1 - 3 thousand a month. Arco paid 90 dollars a month back then if your restrooms were kept clean, inspected twice a month. Gas wars? We ate 1/4 cent for each 1 cent it dropped through a "Sales Meter Subsidy" Coke machine, Cigarete machine, Candy machine, later a Tom's vending machine. Yes, things have changed.

  • @asr5613
    @asr5613 3 роки тому +2

    On depends on your contract, with the company. In New York It varying from .08 to .10 - .35cents per gallon. After that contact is signed. Your job is to hustle prices in your convenience store. It can’t be seen as a BODEGA OR CORNER STORE YOUR PRICES WILL BE EXPENSIVE TO THOSE CHEAP PEOPLE IN THE NEIGHBORHOOD.

  • @spyderj3756
    @spyderj3756 3 роки тому +10

    This is EXCELLENT INFO!!! I'm originally from Michigan. Born in Detroit. Where did you grow up?

    • @wlrqr8258
      @wlrqr8258 3 роки тому +2

      U still in Michigan?

    • @spyderj3756
      @spyderj3756 3 роки тому +1

      @@wlrqr8258 No. I'm near Fort Wayne, Indiana.

    • @bobowrathsovine.
      @bobowrathsovine. 3 роки тому

      @@spyderj3756 from Michigan that's really just down the street

    • @TheBreakdownWithLuke
      @TheBreakdownWithLuke  3 роки тому

      I'm on the other side of the state.

    • @rayval8163
      @rayval8163 2 роки тому

      He’s from California buddy he lives close to me

  • @robertvondeusche6245
    @robertvondeusche6245 2 роки тому +5

    Hey great topic. I could not agree more that the little mom and pop stops are starting to disappear because the majority of people realize that it is supply and demand for everything. Wawa is best known for its hoagies and it’s coffee. I’m not sure if they have a rewards program but as a truck driver I could not agree more that over the road rewards programs are what keep us coming back.
    Free showers and in-store credit, can’t beat it.

  • @RCdiy
    @RCdiy 3 роки тому +4

    There are also credit card processing fees.

  • @realrealonerealrealone2182
    @realrealonerealrealone2182 3 роки тому +19

    Gas stations that have coffee shops are one in a million 🤣 but i like the ideal

    • @TheBreakdownWithLuke
      @TheBreakdownWithLuke  3 роки тому +1

      Becoming more common I know of several around where I live.

    • @maggew
      @maggew 2 роки тому

      Very popular in Italy too, load up on liquored espresso and fuel and off you go!

  • @Ronal-H-Mihawk
    @Ronal-H-Mihawk 2 роки тому +3

    very depressing, very depressing. I thought they made millions of dollars per year.

  • @ambientartphotography2245
    @ambientartphotography2245 2 роки тому +2

    On thing I think you missed is how they also make extra money when people use their credit card. Yes it's to cover fees, but it's higher than the fees

  • @ziggyc4474
    @ziggyc4474 3 роки тому +3

    I would do 30 to 35 percent private label 🏷 on candy and other snacks

  • @michaelcandelario25
    @michaelcandelario25 4 роки тому +4

    Great information! Keep on doing this it's great !

  • @kidzzone7356
    @kidzzone7356 2 роки тому

    ironic that BP would pop up I've been working there four mths

  • @davidjwillems
    @davidjwillems 3 роки тому +7

    This cat sounds drunk.

    • @austinvanderstappen
      @austinvanderstappen 3 роки тому +1

      Was thinking the same thing. Slurring half his words and stuttering a lot.

  • @ashmxuth4919
    @ashmxuth4919 2 роки тому +1

    Highway tax. look at the mark up on items in a gas station you can buy the same items at Walmart or dollar general for half price or even lower if the owners are especially rotten. I worked in a gas station that sold chips for double what you could buy em at stores.

  • @derekrunyan983
    @derekrunyan983 3 роки тому +12

    Amazing 9 and a half minutes into the video still hasn't said how gas stations make they're money..
    Ok I'm not even going to watch it. Wild guess! "BEER AND CIGARETTES!!"
    there it is.

    • @techmetal2292
      @techmetal2292 3 роки тому

      Tobacco is not a very high profit item

    • @saifuddin890
      @saifuddin890 3 роки тому

      u barely make some cents on beer and cig , specially cig not more than 10% ..and then 3%
      goes on credit card ... so basically your making nothing and doing free customer service

    • @Luckingsworth
      @Luckingsworth 3 роки тому

      He said it at the 4 minute mark. It's food and beverages.

    • @ileiva8787
      @ileiva8787 2 роки тому

      @@Luckingsworth
      And cbd

  • @arsenandreasyan4562
    @arsenandreasyan4562 3 роки тому +3

    Sooooo how do has stations really make money? This guy knows nothing about the business

  • @fusemalaysia840
    @fusemalaysia840 2 роки тому

    I take left...since right if God court...
    -:I'm not sure if they keep try to twick

  • @thedigitalconnoisseur7255
    @thedigitalconnoisseur7255 3 місяці тому

    It's a UA-cam video about everything

  • @toddwieland7664
    @toddwieland7664 3 роки тому +1

    I’m more interested in truck stops
    This is terrible news for designs of new facilities configurations.

  • @princeisreal1636
    @princeisreal1636 3 роки тому +2

    Word

  • @elmeraraniva9370
    @elmeraraniva9370 3 роки тому +2

    Nice video!!

  • @gborowme
    @gborowme 3 роки тому +2

    Prrfect

  • @doctorsorder414
    @doctorsorder414 3 роки тому +4

    Do you still think gas stations are a good investment in 2021?

    • @TheBreakdownWithLuke
      @TheBreakdownWithLuke  3 роки тому +7

      That 100% depends on your location and the competition in your area. They can be profitable but they're a lot harder than they used to be.

    • @spyderj3756
      @spyderj3756 3 роки тому +7

      @@TheBreakdownWithLuke You don't want to own a gas station. You want to own the property. And the corporate guarantee on that lease..

    • @ziggyc4474
      @ziggyc4474 3 роки тому

      @@spyderj3756 what is a corporate guarantee ?

    • @toddwieland7664
      @toddwieland7664 3 роки тому +1

      Holding the vendor hostage isn’t something you can pack in the casket when you die
      And get you right into heaven....
      Lease option is humane

  • @vrajpatel8029
    @vrajpatel8029 2 роки тому

    How much money you earn from gas station

  • @michaelh5055
    @michaelh5055 3 роки тому +12

    When gas stations claim they only make a penny or two profit per gallon of gas, they are full of chit.
    I have a friend who owns a station. He says a penny or two profit would be about the dumbest business investment in the US. He also says drinks and snacks help, but are not the main money maker. He says gas is typically .40-.52 a gallon profit.
    He laughs at the thought of making only 50.00 profit on selling 5,000 gallons of gas. Says one employees shift at minimum wage would eat up all the profit and more.... Says he has no idea where the thought of one or two cents profit comes from.

    • @Lucky8s
      @Lucky8s 3 роки тому +5

      The National Association of Convenience Stores claims that gas station owners make a NET profit of 2-3 cents per gallon of gasoline, net referring to income after operating expenses (employee wages being one of them) and credit card fees, etc.
      Sorry, but whoever communicated the idea to your friend that gas station owners only make a gross profit of 2-3 cents per gallon clearly had no idea what they were talking about. Should've done their research before talking.

    • @TheBreakdownWithLuke
      @TheBreakdownWithLuke  3 роки тому +4

      Very likely your friend owns a truck stop selling Diesel. Profit on Diesel is typical in the $0.15 to $0.30 for many truck stops with some in high demand areas getting closer to $1 of profit on Diesel. Gas is typical even in high profit margin areas under $0.10 per gallon profit after all expenses. Remember this is profit after expenses.

    • @richardwarren7492
      @richardwarren7492 2 роки тому +1

      NET profit Got that? NET not Gross profit.

    • @thisizavian3691
      @thisizavian3691 2 роки тому

      @@Lucky8s Well that' s not fact. In this video at 11:46 she clearly states you can set your own margins and currently makes 20 - 3o cents per gallon. This was in january of this year ua-cam.com/video/PZhL6_U9pWI/v-deo.html

    • @righthook5789
      @righthook5789 2 роки тому +1

      It all depends on location.
      There are certain areas where the competition makes it very difficult to work off that margin.

  • @kaypriest4882
    @kaypriest4882 4 місяці тому

    Hello Will Smith

  • @princeisreal1636
    @princeisreal1636 3 роки тому +2

    relaxing

  • @ahmedmoqtassid6547
    @ahmedmoqtassid6547 3 роки тому

    I like pizza, coffee and donuts

  • @ramisandouka1513
    @ramisandouka1513 2 роки тому +1

    There's no way gas stations profit 3 cents a gallon. Gas station cost atleast a million dollars some are 3mil. They would all be shutdown out of buisness if that's all the money they made