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I agree that c-store sales are huge. But I take issue with your numbers... are you sure premium gas has 80% lower markup than regular? The people who buy premiu

I agree that c-store sales are huge. But I take issue with your numbers... are you sure premium gas has 80% lower markup than regular? The people who buy premium gas tend to be wealthier and less price sensitive, further, premium gas is far less likely to posted on the sign. The difference between regular and premium used to be 20 to 30 cents in my experience, now usually 40-50 cent difference. I also question whether big brands have lower margins. People seem to gravitate to the Wawa and RaceTrak and Sheetz and Love's, often due to cleanliness as much as the store, and they usually appear to price their gas a few cents above no-name competitors and still be much busier.

refurb 5y ago
80% lower? My numbers are about ~90% higher? (I’m dumb! I put an extra zero). Typically premium was sold at a 10% premium so percent margin was maybe 70-80% higher? But I also acknowledge that gasoline sales are very location dependent. Where I was the major brands took most of the sales. But again, you’d sometimes find an independent in a prime location who must have been making $500k per year. I did books at a very busy station where the owner made ~$200k in today’s dollars Major disclaimer that what I observed may not apply to other markets.
- listenallyall 5y ago
  > in a prime location I have no doubt that owning a gas station can be hugely profitable. Those independents making 500k made more money because they could get away with charging more for gas, being in a great location. Not because of lower costs. And also because, despite anecdotes, most people are not super price sensitive.
  - refurb 5y ago
    Costs are lower for independents though. No franchise fee, you can source your own goods (franchisees often have to buy from one supplier). The franchiser can squeeze a lot of margin from the station. Of course being independent is much harder, but also potentially more profitable.

refurb 5y ago

80% lower? My numbers are about ~90% higher? (I’m dumb! I put an extra zero). Typically premium was sold at a 10% premium so percent margin was maybe 70-80% higher? But I also acknowledge that gasoline sales are very location dependent. Where I was the major brands took most of the sales. But again, you’d sometimes find an independent in a prime location who must have been making $500k per year. I did books at a very busy station where the owner made ~$200k in today’s dollars Major disclaimer that what I observed may not apply to other markets.

listenallyall 5y ago
> in a prime location I have no doubt that owning a gas station can be hugely profitable. Those independents making 500k made more money because they could get away with charging more for gas, being in a great location. Not because of lower costs. And also because, despite anecdotes, most people are not super price sensitive.
- refurb 5y ago
  Costs are lower for independents though. No franchise fee, you can source your own goods (franchisees often have to buy from one supplier). The franchiser can squeeze a lot of margin from the station. Of course being independent is much harder, but also potentially more profitable.