Average Gas Station Revenue: 27 Tips for Boosting Yours

Gas stations are a central part of many consumers’ daily lives. As a gas station manager or owner, you have an opportunity to meet their needs and generate income. However, to remain profitable, a gas station must generate income from more than just fuel sales. By offering guests everything they need from a quick stop, you create more avenues to boost your average gas station revenue.  

This article pulls back the curtain on the average revenue of a gas station, the factors that influence it, and strategies you can use to increase revenue. 

What is the Average Revenue for Gas Stations? 

While fuel sales contribute to gas station revenue, they don’t make up most of its income. Many gas stations in the United States see less than 2% net profit margins on fuel sales alone. In 2023, gas station sales reached $654.14 billion in sales. Nevertheless, most gas stations depend on additional services to generate revenue.  

Several factors impact a gas station’s ability to increase its income. The three biggest influences are its location, size, and services. However, external factors like economic shifts, oil prices, and consumer behavior changes will also cause revenue numbers to fluctuate. 

Critical Factors Impacting Gas Station Revenue 

Ranging from internal to external influences, these are the six most impactful factors on your gas station revenue:  

1. Location: A gas station that’s centrally located in a metropolitan area or alongside a major highway may see more income than others.  
2. Local Competition: If your gas station is in a pocket with several competitors, it could impact your revenue.  
3. Customer Shifts: An increase in ride-share services or electric vehicles may reduce the number of fuel-dependent customers.  
4. Fuel Prices: When fuel prices surge, customers may be more cost-conscious and opt to drive less.  
5. Customer Service: Top-notch service encourages guests to continue visiting your gas station for an enjoyable experience.  
6. Technology: If you use technology to make the entire transaction more efficient, customers are more likely to return.  

Depending on your unique location and business, you may face additional factors that influence your revenue. Use the ones listed here as a jumping off point as you learn more about your specific audience and market. 

Increasing Your Total Fuel Sales 

Use these four strategies to balance profitability with affordability when handling fuel prices: 

1. Dynamic Pricing: Increase fuel prices during peak business hours and lower prices during slower periods of the day.  
2. Competitor Price Tracking: Monitor the fuel prices of your competitors so you can price yours and remain competitive.  
3. Promotional Discounts: Encourage more business by offering periodic discounts on fuel, on convenience store items, or a car wash.  
4. Rewards Programs: Start a convenience store loyalty program to give repeat customers points or exclusive rewards each time they visit your establishment.  

Pro Tip: To reach an even wider audience, consider offering alternative fuel options. Diesel and electric charging stations allow you to meet the needs of more customers. 

Diversifying Revenue Streams 

When managing a gas station, you have multiple revenue streams to optimize. Here are five sources of income that go beyond fuel sales: 

1. Convenience Store Sales: Offer customers drinks, snacks, quick meals, or other merchandise to meet additional needs while they refuel.  
2. Car Wash Services: Incorporate car cleaning services, or self-service stations, into your gas station to generate income.  
3. Auto Repair Services: Offer auto repair services to attract both local customers and travelers.  
4. Sell Merchandise: Invite customers to purchase local goods, bathroom items, or other merchandise to broadly meet their needs.  
5. EV Charging Station: Cater to customers with electric vehicles by creating a charging station. 

A diverse revenue stream means you don’t rely on one primary source of income. Should one area experience a disruption or be impacted by consumer behavioral shifts, you still have the other avenues to lean on. It’s a way to mitigate financial risks in challenging times and dramatically boost revenue in times of growth.  

Pro Tip: If you’re looking for inspiration, check out the top convenience stores to see what strategies helped ensure their success. 

Leveraging Technology for Efficiency and Profit 

Most customers make a pit stop at a gas station for a quick refuel. That’s why making their experience as seamless as possible counts. Luckily, good technology can help. These are five types of technology to consider: 

1. Point of Sale (POS) System: Streamline every transaction to create a high-quality customer experience and gather valuable guest data.  
2. Inventory Management Software: Leverage convenience store inventory management software to optimize the products you sell, charge more, and reduce waste.  
3. Mobile Apps: Make it easy for guests to access rewards, make payments, and engage with your business.  
4. Convenience Store Online Ordering: Allow guests to order beverages, snacks, or other types of merchandise in advance to save time.  
5. Digital Rewards Tools: Automatically reward customers upon making a purchase using a digital reward tool or loyalty platform.  

As technology evolves, so should your business strategy. Modern tools streamline operations, enhance customer service, and help you stay ahead of the competition.  

Key Insight: The accessibility of online ordering is a large draw for customers, making it a revenue-driving asset for convenience stores. Research online ordering trends to see how your business can take advantage. 

Marketing Strategies to Attract More Customers 

The first step in boosting gas station revenue is finding creative new ways to generate more income. As the next step, get the word out about your services. Implement these five proven marketing strategies to increase foot traffic and visibility: 

1. Loyalty Programs: Reward repeat customers for their continued business by offering exclusive deals, promotions, or offers. 
2. Local Advertising: Use paid advertising in local online or physical places to promote your services.  
3. Community Engagement: Get involved with local community events, like sponsoring a sports team or hosting an event.  
4. Local SEO: Optimize your website or Google business profile to appear in the top search results when customers look for gas stations in their area.  
5. Social Media Advertising: Use social media to connect with your existing customer base and reach new audiences.  

Pro Tip: As you try different marketing techniques to see which works best for you, ensure every initiative is on brand. You want to connect with customers on a personal level, and your brand is where this process begins.  

Operational Excellence and Customer Service 

Consistent, high-quality customer service is crucial to boost long-term revenue. Use these four best practices in your daily operations to help drive income: 

1. Conduct Regular Maintenance: Keep everything operating top-notch by scheduling maintenance on everything from gas pumps to refrigeration.  
2. Optimize Merchandise and Fuel Inventory: Track which convenience store products sell most often and stock your shelves with the most in-demand goods.  
3. Reward Returning Customers: Enhance the customer experience by acknowledging and rewarding loyal patrons.  
4. Take Advantage of Technology: Streamline the purchase process by allowing customers to do it through self-serve kiosks, robust convenience store POS software, or an online ordering platform. 

Your efforts to boost customer satisfaction aren’t limited to the experience you craft for guests. Consider implementing internal reward programs for your employees. You can start an employee of the month award or run a rewarding gift card program. Finding ways to keep your employees engaged translates to a quality guest experience. 

Regulatory Compliance and Risk Management 

Like other companies, gas stations must adhere to regulations to maintain compliant business practices. You can use these four tips to make sure your gas station is compliant: 

1. Update Permits and Licenses as Needed: Ensure all permits and licenses are current, and stay informed on regulatory updates that may affect your operations. 
2. Consult with A Legal Professional: Contact an industry lawyer who can advise on what you must do to ensure compliance.  
3. Research Local Health Requirements: Know your local food safety rules if you serve non-packaged food to customers.  
4. Maintain A Safe and Clean Work Environment: Make it a standard practice to clean the bathroom, dust the shelves, empty trash bins, and keep the convenience store interior clean and comfortable.  

Note that industry regulations can change without warning, so schedule periodic check-ins to ensure you follow the rules correctly.  

Frequently Asked Questions About Gas Station Revenue 

Check out our answers to common questions about gas station revenue.  

How profitable is a gas station? 

Gas stations alone are generally not high-profit establishments. However, you can run a profitable gas station by diversifying your revenue stream with car washes and convenience stores.  

How much do gas station owners make yearly? 

On average, a gas station owner makes between $40,000 and $100,000 per year. However, this salary can vary depending on market conditions and overhead expenses.  

What is the average revenue of a convenience store? 

As a whole, convenience stores in the United States see an average of $1.85 million in sales. However, on the individual store level, average revenue will vary based on location, offered services, and consumer demand.  

How much money does a convenience store make a day? 

The average daily income for a convenience store depends on its total expenses. You should strive for a net profit of 10 to 15 percent.  

What’s the most profitable type of retail business to start? 

Specialty beverages, like tea shops or wine bars, are among the most profitable retail businesses. However, you should review market conditions and your target audience to understand which type of business will work best for your situation.  

Optimizing for More Gas Station Revenue 

With the right strategy, generating steady revenue from your gas station is well within reach. It’s important to remain agile. As global markets impact fuel prices and consumer behavior shifts, you must adjust your strategy to meet customer needs. Diversifying your revenue streams and always striving to create a high-quality customer experience boosts the odds of long-term profitability.  

Now, if you’re ready to get started on your strategy to drive more gas station revenue, don’t hesitate to get in touch with our team at Paytronix. From marketing techniques to impactful customer loyalty programs, we have all the tools and resources you need to boost revenue rolled up into one platform.  

Schedule a demo today to learn how our platform can help you achieve your revenue goals.