Profitability of Gas Stations
To determine the profitability of owning a gas station, calculating the monthly profit margin is key. Total all revenue sources and subtract expenses like payroll, utilities, taxes, and fuel costs to find the net profit.
Factors Affecting Profit
- Location impact on profit
- Gasoline gross margin vs. convenience store sales
- Additional revenue from services like car wash and food sales
Earnings Potential
Gas station owners can earn $40,000 – $100,000 annually based on location, size, and additional services offered. Net profit per gallon sold averages 3.5 cents with gas at $3.50 per gallon.
Industry Insights
- Average net profit margin for gas stations is 1%
- Building costs and financing options
- Effort and capital needed to start and maintain a profitable gas station
Market Comparisons
- Profit averages for West Coast, Midwest, and South gas station owners
- Average salary estimates for gas station owners based on location
- Gas station industry insights in Canada