What makes the most money for a gas station? Food service, packaged beverages, cigarettes, and beer. Profit margins on gasoline average 3 cents per gallon. However, merchandise accounts for 70% of profit. The average gas station makes $5,300 monthly in a normal city. Startup costs range from $250,000 to $2 million. Profitability depends on location, volume, pricing, and services. Most stations have small profit margins, around 1.7%.
Long-Term Sustainability
Competing on price alone is not sustainable long-term. Focus on improving merchandise sales and adding services. Regional earnings for owners vary, from $47,000 (Hawaii) to $73,000 (California). The future may involve adapting to electric vehicles.
Considerations for Investors
Analyze your market carefully when considering investing in gas stations.