Kievgid

You have a thirst for information when you are in the process of buying a gas station or a convenience store and have plenty of questions to ask. You want to be sure that when you take ownership, the business is turning a profit from day one. However, you shouldn’t just settle for that “go with the flow” mentality, so to help you really succeed, here are six proven strategies to turn your new business into a spinning money machine, faster than you might think.

Tip one: be aggressive out of the gate and apply pressure point marketing. When a business transitions to new management, it’s an excellent time to acquire new customers and to ensure that your station and store become the absolute favorite location for a variety of new people. Consider a few new ideas – for instance, some prominent signs advertising a price reduction for a limited time only, or perhaps a free cup of coffee served outside during the first few weeks of business. Show off your brand with uniformed and motivated employees giving out rebates or other interesting incentives to each paying customer. After just one week of these aggressive selling tactics, you’ll likely put the previous owners sales to shame.

Tip two: go out and look for new clients by copromoting with other merchants in your area. Tour the locality and see where people are shopping. For example, make a deal with the supermarket manager to distribute their coupons if they will reciprocate. Car washers or tire vendors are great places to co-promote. Be creative!

Tip three: start talking with your vendors. Now is the time as a new owner to negotiate aggressively as you have the advantage. Everything in your store should be renegotiated, from coffee to snacks to magazines. Open up the playing arena by inviting all sorts of other vendors to tender. This will focus the attention of the previous vendors and price breaks will follow. Make sure that you establish return privileges. In that way you can sell additional products in your store, safe in the knowledge that if they do not sell you simply return them and don’t lose a cent.

Tip four: get your family involved. If they will volunteer for you during the first critical months of operation you may be able to control payroll costs a little better. Furthermore, trained family members would be available to step in during times of vacation or sickness, etc.

Tip five: look at the records and identify under performing products. You may find that certain items outsell others by 2 to 1. Swap out slow selling items with new products and displays during your first few months to test the market. Whilst some items may be slow sellers, remember that you should not gamble too much with your products and displays as you are trying to promote a “convenience” store and people do look for all kinds of odds and ends. Whilst some items simply do not sell enough they need to be there from an overall perspective. Always test to see what sells well.

Tip six: implement proven strategies to help boost sales. For example, set a coupon display by the pumps or put hot selling products in easily accessible places, such as right inside the door. Think of what is popular on a seasonal basis – like cooling drinks, which should be placed right inside the front door. Create strategies for some of your top selling products and reap dividends in your balance sheet.

So, whether you’re looking for a gas station, a convenience Store, or a truck stop for sale, if you carefully follow these strategies then you’ll significantly improve your overall chance of establishing a successful business.

Richard Parker is the President and founder of the prestigious Diomo Corporation - The Business Buyer Resource Center. His celebrated materials, seminars and consulting have encouraged thousands of aspiring business buyers from around the World to pursue their dream of buying a business.

In real estate we are told that location is everything. You need to know the most profitable location for your gas station or convenience store. Is it right next to a major highway, close to a mall or elsewhere?

When assessing the best location to buy a convenience store, remember that you already have part of the answer before you even start. Unless you’re planning on moving, you’ll want to find the best station you can near your current home, preferably within a relatively short commuting distance. Don’t even consider the notion that you can become an “absentee owner,” as gas stations and convenience stores aren’t well suited for this particular approach.

To make sure that you have a successful business on your hands, you need to be near to the premises to keep a good eye on what is happening. Profits are likely to fall if the business does not have a good manager and you need to be a hands on operator to multiply your odds of success. If your station is not operating under top conditions don’t be surprised if you do not get the results that you desire.

Important considerations when scouting for a location:

Everyone’s definition of an ideal location for a gas station would be right next to a major highway with easy off and on access. Such a location could only be a cash cow for its owners. While this is usually accurate, remember that the major oil companies are well aware of this fact too, and they either own or lease the vast majority of these prime locations already. It’s not impossible, but it will be very difficult to find and buy an independent station here.

While a mall or a shopping center is theoretically a prime location, there are drawbacks. A large volume of business is certainly possible, but by and large the land adjacent to the mall belongs to the company that owns the mall and is leased under strict conditions. Plus, 24/7 access may not be convenient. The company will undoubtedly have a clause within the contract that allows them to expand and replace your station with a different kind of tenant, such as a chain restaurant. Note also that if a big box super store arrives, they may well have their own gasoline station and this can really hurt your profits. If you believe that this location is a good one, the chances are that other entrepreneurs think the same way and may seek to move their station into the location.

If you’re willing to exploit the “convenience store” nature of the business, you might want to look at inner-city or other “diamond in the rough” locations. In suburban neighborhoods you can establish a great business by tapping into the need for people to pop in and buy items on their way home from work, for example. A smaller gas station and convenience store in such a location can be an excellent choice as this type of business almost never happens in a station next to a major highway or at a mall. The chances are that a station in one of these neighborhoods will be priced more competitively, if you are starting out on a tight budget.

When selecting the location consider whether the general area is growing. If you can see new hospitals or new businesses opening up, it is a positive sign.

Be certain that you are buying into a good area, as your gas station or convenience store will only be successful if you have chosen well.

Richard Parker is the President and founder of the Diomo Corporation - The Business Buyer Resource Center. His inspiring materials, seminars and consulting have assisted thousands of business buyers with achieving their life long dream of buying a business.

When you purchase a gas station and c-store, try not to make the mistake of settling down and expecting to get customers just because “you’re doors are open”. Don’t even think about relying on the current situation, expecting a consistent number of customers to come and go every day. You need to employ some aggressive marketing techniques to help you compete and defeat all your competitors, even the supposedly dominant oil company owned stations. So, be proactive and make something out of your new acquisition – you will be proud of yourself if you do.

Look to these marketing fundamentals, and then play your own personal twists:

First of all, ensure that your business is different from the rest. Take a drive around your general area and check out all the other gas stations with convenience stores. Look to see what they are doing from a marketing perspective and take good notes. When you eventually return to your own place of business, figure out how you’re going to provide something which the others are lacking. Differentiate your new business by, for instance, being open longer hours or by presenting your place of business as a brighter and cleaner choice. Choose a distinctive uniform for all of your staff, and train them intensively so that they enthusiastically greet each and every customer. Get together a long list of promotions and prizes to periodically stage, with coupons too. One of the staples of a gas station is its morning coffee – provide a great flavor and stimulate your visitor taste buds! Stock your store with a wider selection of items and make sure that you give certain things away free – including air, water and vacuum.

Secondly, communicate! Don’t be shy and make sure that you tell your customers that you have the best gas station and convenience store in the area. Once you have identified your core customer and found out all about their habits, initiate promotional campaigns within the media channels that will reach them directly; for example, put discount coupons in popular health clubs. Make sure that your communication methods are consistent – keep selling. From time to time open your facility to a worthy charity – for example, those car washes staged by the local softball team.

Thirdly, make sure you integrate well into the surrounding community. Look for opportunities to sponsor a local sports team or a popular cause. Get involved in cleaning up an eyesore, such as a neglected local park. Consider funding a college scholarship or co-promote with the merchants in your area to help improve the business climate. Whatever you do, make sure that you send information about it to the local media so they will promote you free of charge. As you will pretty much always get coverage if newsworthy, go out of your way to generate those “feel good” activities and the press will help you out with column inches and radio sound bites.

There’s no such thing as a small business, only business people who think small!

Richard Parker is the author of the How to Buy a Good Business at a Great Price series. As President and founder of Diomo Corporation - The Business Buyer Resource Center, his materials, seminars and consulting have helped thousands of business buyers realize their dream of buying a business.