In 2009, according to a U.S. Industry Report by IbisWorld, the industry revenue was over $97 billion with 20 million establishments. Most Americans are accustomed to driving -- and to complaining about the cost of a gallon of gas. However, even though gasoline is in demand, gross profit on a 10-gallon purchase of gas is less than the profit on a can of Coke. Therefore, gas station owners supplement their revenue with convenience stores, auto repair services and car wash businesses.
Gas Stations Income and Profits
Traffic speaks volumes to generate revenue at gas stations. Whether or not a station is branded, much of the income is due to service bays, convenience stores and other services. For example, in Houston, Texas, a Chevron gas station with four bays pumps 80,000 gallons per month. Its revenue with a repair station is $2 million, profiting approximately $63,000. In Middlesex County, Massachusetts, an unbranded gas station on a main street also generates revenues of approximately $2 million with two service bays. It pumps 60,000 gallons per month with cash flow of approximately $78,000.
Credit Card Impact on Gas Station Income
Credit cards are costly for gas station owners, and part of the reason that convenience stores and other services are needed to stay afloat. Paying at the pump with a credit card is convenient for customers, but gas station owners would prefer cash-only services because of fees between 8 to 10 cents a gallon that credit card companies charge.
Convenience Store Impact on Gas Station Income
According to the National Association of Convenience Stores, the U.S. has approximately 145,000 gas and convenience stores that account for $624 billion in annual sales. Gas and convenience stores service approximately 1,100 customers per day per location. Oil companies with convenience stores have recently shifted from owner-operator models to franchise models like those of independent retail companies such as 7-Eleven, Alimentation and the Pantry.
Car Wash Impact on Gas Station Income
Contributing to the income of gas stations are car washes. In 2009, according to a U.S. Industry Report by IbisWorld, the industry revenue was over $6 billion. The average income of the car wash industry grows as the economy stabilizes and people are comfortably using their vehicles.
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