The 3 Convenience Store Industry Trends You Need to Know
Convenience stores are more than just gas stations or quick stops on a long road trip—they supply on-the-go customers with crucial daily essentials....
6 min read
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.
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.
Ranging from internal to external influences, these are the six most impactful factors on your gas station revenue:
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.
Use these four strategies to balance profitability with affordability when handling fuel prices:
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.
When managing a gas station, you have multiple revenue streams to optimize. Here are five sources of income that go beyond fuel sales:
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.
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:
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.
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:
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.
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:
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.
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:
Note that industry regulations can change without warning, so schedule periodic check-ins to ensure you follow the rules correctly.
Check out our answers to common questions about gas station revenue.
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.
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.
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.
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.
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.
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.