Profit Margins and Markups in Convenience Stores:
The average gross profit margin for convenience stores is $450,000 annually, with potential for increased profits through multiple locations within a city.
Gas Station Profit Margins:
Gas stations and their corresponding convenience stores are some of the most profitable businesses in the United States, with profit margins ranging from 1-2% for standalone gas stations to 5-30% for operations that include convenience stores.
Average Markups and Profit Margins on Gas:
The average markup on gas is 105%, which includes the retailer’s profit and costs to sell fuel. The gross margin on gasoline in 2021 was 30.9 cents per gallon, or 10.2% of the average price, with retailer gross margins averaging 27.2 cents per gallon over the past five years.
In most cases, the annual NACS Factbook reports an average annual markup of 10.5% for gasoline, which includes the retailer’s profit and costs to sell fuel.