Petrol Filling Station Business

leaner999

Hi,
I am thinking about leasing a petrol station. I am a novice in this business. Is this a profitable business if I am willing to spend 40-60 hrs a week in the store?
I would greatly appreciate any advices from anyone who is already in this business.

Bandara

To give the short answer version.....

1. If your a novice walk away, too much to learn in this climate, you'll go bust.

2. Are you aware of the large upfront financing requirements?

3. Might sound harsh but.... most likely the fact your are being offered a particular site means that its a crap site. As nothing decent ever goes to the open market until its been hawked around and refused everywhere.

4. Finally 40-60 hours would need to be more like 70-80 hours, and quite possibly more in year one.

To cut through all the bullsh!t just tell me what site you are looking at and I'll tell you straight away what business its doing, you can pm me this if you like. And relax, I've zero interest in robbing your site.

Regards,
HT.

bigneacy

Agree with Hammertime - if it hasn't already been taken by an oil company or somebody in the business its because there's something not right. Petrol stations very rarely go on the open market.

Fergal C

Hammertime wrote: »

...tell me what site you are looking at and I'll tell you straight away what business its doing...

How can you do that? For clarity, I'm not suggesting that you can't do it, simply interested in learning how you can.

Thanks!

antoinolachtnai

There aren't really that many petrol stations in Ireland ...

PhatPiggins

The margain on petrol is tiny. You'll need to accept that you're practically selling it at cost and that 98% of anything you make will come from other sales.

Has it got a decnt sized,preferably franchised store on site? I think you need to be prepared for the 70 hours if you're going to do this.

GL though

bigneacy

Yes, you really should focus on the business that will make you money.
Try to think about it in such a way that the store is your business, and the forecourt is simply a marketing tool to attract your customers.
But check it out first, you need to seriously ask why this opportunity has come your way and not already been snapped up

Also, does it have a car wash? Licence to print money if you get a reputation for doing a good job. Theres a place here in Dundalk that does a great job. They've about 5 or 6 lads washing the car at the same time.... I sat and watched one day out of curiosity (before i started my own business - researching, not being an anorak)--- on a dull, slightly damp tuesday afternoon between 2 and 3pm they done 32 cars at €6 a pop each. and 2 vans which i presume are more expensive.

The Guvnor

Where was this car wash in Dundalk - behind the lisdoo?

bigneacy

Thats the one... E.K fuels I think its called. They sell diesel too. Cheapest quality diesel in Louth I think they claim....

bud10

Completly agree with Bigneacy.

Fuel sales in this business only means turnover. the margin is so small you cannot depend on especially when you have 2/3/4/5 competitors in a town all offering at relatively the same price.

You need to focus on how else you are going to increase profit. e.g a well run deli can be very attracting but does mean a lot of admin. ensure you have all the essentials available that a one stop shop should have. You don't need a stocked supermarket, but make sure you maintain all the basics people look for when they're travelling or just ' popping to the shop' for.

Best of luck anyway

bigneacy

bud10 wrote: »

Completly agree with Bigneacy.

Fuel sales in this business only means turnover. the margin is so small you cannot depend on especially when you have 2/3/4/5 competitors in a town all offering at relatively the same price.

You need to focus on how else you are going to increase profit. e.g a well run deli can be very attracting but does mean a lot of admin. ensure you have all the essentials available that a one stop shop should have. You don't need a stocked supermarket, but make sure you maintain all the basics people look for when they're travelling or just ' popping to the shop' for.

Best of luck anyway

If you are considering a deli, do it properly. Not the same run of the mill stuff that all the other ones are doing.

Its easier to use the same preprepared ingredients that the other places are doing but if you do different produce, like better quality chicken or secret recipie spicy chicken then you'll do well. Do it differently (and better) and people will travel to get their lunch rolls in your place instead, while they are there they'll get their fuel as well and buy a few other bits and bobs. They'll see your special offers and they'll keep in mind about your car wash...

Its all about customer awareness. If you can, do it without going under a name e.g. esso, topaz or texaco - that way you can create a fresh brand that you could potentially franchise in 5 or 10 years, if this isn't an option try to go with a new brand like apple green or one of the brands that don't have a lot of baggage with them (defo not BP at the moment)

mike65

antoinolachtnai wrote: »

There aren't really that many petrol stations in Ireland ...

For a reason, about half have closed in the last 15 years or so. Retail chains were rationalised and merged, the property bubble meant sites were worth far more as potential plots for apartments than as an increasingly marginal working business. Anyone who is thinking of getting involved needs their head looking at, unless they have one hell of a USP - topless cashiers maybe, that sort of thing!

The Guvnor

bigneacy wrote: »

Thats the one... E.K fuels I think its called. They sell diesel too. Cheapest quality diesel in Louth I think they claim....

Thanks mate. Sorry OP for the slight veer OT.
Reminds me must call them and see if I won the €400!

bigneacy

The Guvnor wrote: »

Thanks mate. Sorry OP for the slight veer OT.
Reminds me must call them and see if I won the €400!

seen it in the argus... was a woman who claimed her €400 this month.

Sorry for being ot again!

The Guvnor

Thanks!