How to Start a Gas Station

Summary: Get a general idea on how a gas station operates. This article is for those who plan on putting up their own gas station. It also provides information on the different types of gas stations and gas brands.

A gas station is a solid investment because public demand for fuel is constant.

But before you set off, it is a must for you to acquire an expert understanding of the trade. Knowledge is a surefire way to counteract problems often associated with any start-up business endeavor.

Products of Gas Station

Gasoline and diesel are two most common types of fuel sold in any gas station. However, since the advent of environmental awareness, other gas stations deemed it fit to carry alternative fuels such as bio-diesel, hybrid fuel, hydrogen fuel, and ethanol. Other products typically sold are liquefied petroleum gas and compressed natural gas.

Premium vs. Discount

In the US, gas stations are classified into two groups: those that carry premium brands and those that carry discount brands.

Some of the more recognized premium brands are Exxon, Chevron, Texaco, Valero, BP, Citago, Shell, BP, and Sinclair. Notice that all these brands are international gasoline brands. Some local brands however are also categorized as premium. For example, Petrobras, ESSO, PENEX, and Petro-Canada.

What sets a premium gas station apart is its visibility. They have a branch in almost every corner and they make use of tall signs showcasing their familiar brand logo. They also have brighter lighting. The service they offer is top notch and they aim to provide convenience for their customers. Often, they are cleaner and more modern.

Discount brands, on the other hand, are quite smaller independent stations. Often they are considered as regional chains. Some examples of discount gas stations are Rotten Robbie, Valero, ARCO, and USA Gasoline.

Their gas prices are usually lower compared to the premium brands. This is why many buy wholesale gas from them. In terms of location and visibility, discount gas stations are few and far between. They are typically located a good distance from freeway exits and highways. Their services are not up to par with premium brands as well as their technology.

The A-B-C’s

A - Begin by finding an ideal location for your gas station. The best way to go is setting it up in a high traffic area. You may seek the assistance of local realtors. The usually know more about sale listings. Once you have viewed the property and it has passed your criteria, commit to it.

B - After you have secured a location, you can now focus your attention to finding a good source for your product. Talk to as many oil company representatives as you can. This will enable you to compare rates. Upon finding the best deal, have a solicitor review the contract for you. Caution must be observed on the legal aspects of the deal.

Get in touch with the local state agencies and file all the mandatory paperwork such as license and permits. Also, get in touch with the local fire department and find out what their requirements are and make sure your gas station meets these requirements.

C - Create a working business plan. Make sure you include a provision on monitoring cash flow. Also, include marketing techniques to promote your gas station.

1. ADRENA (7/6/2008)

THIS IS USEFUL INFORMATION. I AM LOOKING TO START ONE OR MORE IN MY LOCAL AREA AND BEYOND.

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