Is owning a gas station a good investment?

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asked Dec 10, 2019 in Investing by xylitol321 (310 points)
Is owning a gas station a good investment?

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answered Dec 10, 2019 by Grahlu (51,270 points)
Gas stations can be a good investment if you can buy the gas station or set up the gas station in a large city or town or alongside an interstate.

If you setup the gas station or buy the gas station in a small town with less than 2,000 people in the population then you'll be lucky to break even or make a profit on some days or at all.

In order to succeed with owning and operating a gas station you need to be located in a high trafficked location such as a large city with thousands of people in the population or alongside an interstate.

A gas stations profit on gasoline sales is between 2 to 5 cents per gallon after the credit card fees, rent payments, purchase of gas, electricity to run the pumps etc and taxes.

Gas stations make very little money on gasoline sales.

For example lets say you purchase $50.00 in gasoline the gas station makes around $1.00 out of that $50.00 transaction as most of it goes for the purchase of the gasoline and other fees they are charged with.

If you have a gas station in a small town with very little traffic then you'll be lucky to break even on some days.

You have to get people into the gas station to purchase additional items where you make your profit such as coffee, soda, Tea, chips, snacks, donuts etc.

If you can get a gas station in a high trafficked location such as off an interstate then you can likely make a good amount of money.

But those gas stations can cost a million dollars or more to purchase.

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