would buying a gas station be crazy? **updated with pics i took this morning

[OutHouse]

Im sick of IT work, the long hours, pager duty, midnight installs, dealing with users, help tickets... anyway a good friend of mine would sell me his phillips 66 for 350K. its on a corner of a busy street, has a tastee freeze and a 4 bay car wash (1 auto, 3 manual) he does charge a nickel more for gass but he provides full service (employees pump and clean windshields) his station is very busy but with gas is volume that counts because the profits are so small.

he is going to come over this weekend and we can go over his financial and assets.

my wife is all for it she is believes anything is better than my current job.

the reason he is selling is because he came from IBM and knows what i am going through, plus he has a pack & ship store and a RV storage lot that he wants to concentrate on plus have more time to go fishing...

what do you guys thing am i crazy in this economic time to even be considering this?



http://pics.bbzzdd.com/users/citrix/Gas_station1.jpg

http://pics.bbzzdd.com/users/citrix/gas_station2.jpg

 

[Heller]

yes, only if you give a atot discount though.

 

[Xonoahbin]

I say it's an intelligent investment, but that is just my humble opinion. Good luck with whatever you decide.

 

[Cdubneeddeal]

I think it's a great idea. Just be advised that you'll most likely have to work long hours as well, mainly in first year or so.

 

[Jhill]

You can't beat being your own boss. I'd get some professional onions first. (even if they costs you) And someone that knows what they are doing to inspect the gas station top to bottom.

 

[Judgement]

I don't know anything about the financial aspects or profitability of a gas station, but if you aren't happy at your current job than absolutely you should move on to something else

 

[ponyo]

I looked into buying a gas station couple years back. Inside convenience sales are the most important. Outside gas sales are only important that it brings people in but you'll make nothing from selling gas.

Oh, if you're sick of long hours and stress, you're going to be in a world of shock. Running a gas station and your own business will be 100x harder than your current job.

 

[Capt Caveman]

Sounds promising. If the numbers look good, you should volunteer there for a weekend or two and see if it's something you won't start to hate also.

 

[IGBT]

..I use to manage them for nearly 10 years. I made good money but a huge pain in the arse. Employee theft..hold up's..vandalism..fights..gas stations tend to be the arm pit of a community. Anything and everything shows up there. The only thing that made it all worth it were the girls in unconscionably short skirts shooting crotch shots in small sports cars.

 

[OutHouse]

Originally posted by: Naustica
I looked into buying a gas station couple years back. Inside convenience sales are the most important. Outside gas sales are only important that it brings people in but you'll make nothing from selling gas.

Oh, if you're sick of long hours and stress, you're going to be in a world of shock. Running a gas station and your own business will be 100x harder than your current job.

yea i know about the hours but you know it will be hours for me and not for the man. i put in extra hours at work and all i get is a email good job and a annual 3% raise.. whooo hooo!

 

[Skeeedunt]

I thought running a gas station was a huge PITA that made almost no money?

 

[OutHouse]

Originally posted by: Capt Caveman
Sounds promising. If the numbers look good, you should volunteer there for a weekend or two and see if it's something you won't start to hate also.

thats what iam going to do this weekend? and i took the 13 and 14 off, gotta burn some of the 320 hours of vacation time i have...

 

[OutHouse]

Originally posted by: Skeeedunt
I thought running a gas station was a huge PITA that made almost no money?

thats where the tastee freeze comes and the car wash. he says the car wash does on anywhere 5-7K a month. told him he will have to prove that to me and he will bring over the credit card statements on sunday to prove that portion to me.

 

[TruePaige]

Originally posted by: Citrix

Originally posted by: Skeeedunt
I thought running a gas station was a huge PITA that made almost no money?

thats where the tastee freeze comes and the car wash. he says the car wash does on anywhere 5-7K a month. told him he will have to prove that to me and he will bring over the credit card statements on sunday to prove that portion to me.

See what the profit margin he makes on his big convenience item sales are.

You are going to make most of your cash on candy / beer / soda / smokes / lighters.

A hell of a lot of people buy lighters, cost nothing, sell for a buck or so each.

 

[Dubb]

Originally posted by: Naustica
I looked into buying a gas station couple years back. Inside convenience sales are the most important. Outside gas sales are only important that it brings people in but you'll make nothing from selling gas.

Oh, if you're sick of long hours and stress, you're going to be in a world of shock. Running a gas station and your own business will be 100x harder than your current job.

A former client of mine used to be in the gas business. now he's a banker.

What he told me: it's a difficult business, and you have to be very careful and very smart to make any money. There are basically two models: In one, your profit on gas will fluctuate with the market - sometimes it'll be 13c a gallon, sometimes you'll have to be at next to nothing just to keep people from driving another half mile down the road for the cheaper price. You have to be very good at saving and investing during the good times to insulate yourself from the bad times.

In the other model, you use gas to get people in the door for other stuff (sheetz is a great example - sandwiches and such) here you're at 5-7c a gallon pretty much all the time. More work because you have to stay on top of the extras that you're making your money off of, have more employees, have to have smarter/less lazy employees, etc.

I wouldn't do it. Your friend is looking to get out for a reason.

 

[imported_Lothar]

Hard to tell unless you see the financial statements...

 

[JS80]

Horrible idea. That price is fishy (i.e. too low). My great uncle bought a gas station and he just had to fire two employees and now works there himself to minimize losses. Those franchises will rape you the chance they get.

The saving grace of yours may be the car wash.

I would also consider soaring gas prices and possible decline in economy (i.e. less patrons). Lower traffic = bankruptcy.

 

[aloser]

I worked at a gas station for a few years; I can tell you that profit margins are relatively thin. Your profit will be entirely from the in-store merchandise; consider yourself VERY lucky to make a 2c profit per gallon. If you have a lottery sales area, that will provide slightly more income (commission on the sales of the tickets plus a cut of any winning tickets). The store I was at, I worked there twice (left when the new owners took over, then went back to work for the new owners briefly) - the first time, the owners were very reputable so volume was high (course, this was also before the large increases in gas prices). Anyway, I would easily bring in $1000 daily myself working 8-4 M-F, not to mention anything from 5-8a (opening) or 4-9p or whatever the weekend brought in. (I also did the bank run; total deposits were roughly $1750/day.) Second time I was there, we were lucky to hit the $1000 mark all day combined (same 5 am-9 pm hours). Yeah, that's (still) decent money, but you also have to pay ALL the bills. Distributors, staff, permits, utilities, maintenance... Point being, if you personally have a solid reputation in your area business-wise, go for it; if not, build your rep (don't count on the existing owner's rep carrying over to your station unless you keep the existing crew) or find something else. Good luck either way!

 

[FoBoT]

you don't make any money on retail gasoline

the money is in the car wash and selling crap in the store, soda and chips etc

 

[IHateMyJob2004]

You want to quit your job because you are sick of the long hours, pager duty, midnight installs, dealing with users, help tickets.

In return, you want a job that has long hours, you are always on call, you'll be dealing with unskilled laborers and other miscellaneous headaches that come with running a business.

 

[The Stigenator]

make sure his UST (underground storage tank) is not leaking.. if he has a LEAK.. those are HUGE remediation costs.. so make sure you get that checked by a professional. Since its Philips 66, which is not in CA, you might have a secondary containment tank.. IN california you cant have a secondary containment tank, aka: an inspection room - but in other states they do have them.. but before you can go in there, you will need to be HAZWOPER certified.. and likely need to file an confined space permit to get in there. You will need a minimum of 2 people, one who will be on the outside.. with airflowing in.

Do your due diligence.. and you should be good. After all the $ in gas stations is not in the gas, but the stuff in the mart.. thats where they really rake in the $.

 

[OutHouse]

Originally posted by: TheGoodGuy
make sure his UST (underground storage tank) is not leaking.. if he has a LEAK.. those are HUGE remediation costs.. so make sure you get that checked by a professional. Since its Philips 66, which is not in CA, you might have a secondary containment tank.. IN california you cant have a secondary containment tank, aka: an inspection room - but in other states they do have them.. but before you can go in there, you will need to be HAZWOPER certified.. and likely need to file an confined space permit to get in there. You will need a minimum of 2 people, one who will be on the outside.. with airflowing in.

Do your due diligence.. and you should be good. After all the $ in gas stations is not in the gas, but the stuff in the mart.. thats where they really rake in the $.

i asked about that and his tanks are inspected every year and are in good shape and containment tanks are not required in Colorado.

 

[summit]

excellent idea, my friend's dad bought a gas station and they have a very successful business.

 

[DaveSimmons]

How often does someone bring a gun into your current workplace and hold it up?

"Oh, the searing kiss of hot lead, how I've missed you!" - Apu

 

[OutHouse]

Originally posted by: DaveSimmons
How often does someone bring a gun into your current workplace and hold it up?

"Oh, the searing kiss of hot lead, how I've missed you!" - Apu

the store closes at 9 but the pumps are 24 hours.

this is also in a small town between Denver and Greeley.