Contact Us

Pain at Pump Hits Gas Station Convenience Stores [POLL]

Gas station owners don’t count on fuel for their profits. They want customers to fill up inside the convenience stores on potato chips, soda and coffee.

Flickr User dno1967b

But, as gas prices continue to head upward, people are changing their driving habits, less fuel is being sold and fewer folks are heading inside for snacks.

“The average profit on a gallon of gasoline is ten cents or less. I know of many places that are making a profit of five cents or less,” said Sal Risalvato, Executive Director of the New Jersey Gasoline, C-Store and Automotive Association. “The profit on a gallon of coffee is about five dollars a gallon. So, if a retailer sells a gallon of gas for four dollars, he makes about ten cents. If a retailer sells a few cups of coffee that total a gallon, that’s about six dollars in sales and he makes about five dollars.”

“The object is to have customers that stop at your gas pumps, come inside and grab a cup of coffee or a bag of potato chips,” said Risalvato. “But, demand has changed and there are fewer gallons of gasoline being sold as people adjust to the high price. So, people are making fewer trips to the gas pumps as they adjust their driving habits. That is affecting the convenience stores. Fewer trips to the gas station means fewer trips inside for snacks.”

So, what is a gas station owner to do to stay afloat?

Lowest Gas Prices in New Jersey
New Jersey Gas Prices provided by GasBuddy.com

“Good business practices require that small business owners raise their profit margins accordingly as the price of the product goes higher. But, competition is constantly putting a downward pressure on their profit margins. I always caution owners to make sure there’s enough profit margin on a gallon of gas when they sell it so they don’t get put out of business.”

 

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

 

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://wobm.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on 92.7 WOBM quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here

Register on 92.7 WOBM quickly by logging in with your Facebook account. It's just as secure, and no password to remember!