That article says that typical stations make perhaps $15k/year on fuel after expenses and occasionally have months, when fuel prices are dropping and customers aren’t as cutthroat, where they make another $10-15k. So perhaps $20k/year and that’s if their operations are scaling well. That’s the same thing the c-store industry is talking about.
It estimates 11,400 per month (not year) in gross profit. Sure there are additional expenses -- credit card fees, utilities, rent, labor -- but those would seem to be attributable more towards the convenience store part of the business.
I read it. It estimates $10k of operating expenses right after $11.4k gross margin on fuel. Why would you think I hadn’t factored that whole paragraph into my $1500/mo?
To your point in the other thread, you’re right that some of typical operating expenses happen because of the convenience store. It’s possible to run pumps with no store partially unmanned and make money (you see this at some rest stop gas stations on interstates, for example, or some grocery store lots.) However, those are blessed due to unusual location and not attainable for most owners, so they need to run a more complex and attractive operation.
I've never owned/managed a gas station - but I'm thinking that just selling gas carries some serious overhead. Santa Claus did not bring, nor install, the large underground storage tanks, pumps, & related infrastructure. The local property tax authorities probably know how much that's all worth. Then there's the maintenance, inspection fees, insurance, etc. on it...
> large underground storage tanks, pumps, & related infrastructure.
That's CapEx. Plus, somebody built the store, too. How about labor? When was the last time you saw an employee OUTSIDE at a gas station, not inside the convenience store?
I never said the gas station part has no costs, just that the store likely has more, and when a article from "The Hustle" attributes ALL OpEx to the gas, it's the readers being hustled.
