Yes it’s in a SMALL town <1000 people but it’s the only pertol station for miles! so it services all the farms etc, in the area??? So it’s litres pa may only be smalll i don’t know?
It is on a highway, and the town hasn’t been by-passed? and being the only station in town the agent assures me “it’s future is assured”
strange… but true??? ish[confused2]
*edited for my dylsexia*
Often the farming community is serviced by fuel distributors. They receive bulk deliveries mainly of diesel and these distributors may travel some distance to service the community.
Steve you said the tanks were owned by the Caltex Distributor who no doubt supplies this site. That Catex Distributor no doubt, supplies the farming community as well.
On a main highway is good but the profitability would not be coming from 1000 people – it would have to come from passing traffic.
Jeff
steve,
Why not check out the profit and loss statements on the place over the last number of years (say 5)? If you are REALLY serious avbout this venture, I’d be sitting down with every rural PS owner I could find, and gently asking them if they’d have a chat with you about whether they think it’s worth the purchase.
kay henry
Jeff you are right. Shell was only considering moving out of the retail fuel market. I am not sure how serious they were about this – probably more just interested in diversifying their profits through expansion into other areas.
I was surprised when I heard how many pies the big oil companies have their fingers in.
Some of the mining contracts etc are very big dollars. My cousin, when working in Kalgoolie, told me that three times a week a B Triple truck would arrive – that’s about 90,000 litres three times a week for just one mine!
And I am sure Coles have adjusted the prices in store to not only compensate for any extra costs, but also have factored in a handy profit too.
Which reminds me of a saying… “Loyalty only costs you money!” and I am sure they have many more loyal customers willing to shop exclusively at Coles so they can ?save? money on fuel.
Hi Steve,
I am not sure where you are with this idea but thought you may be interested in an article in the October 04 edition of the API.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Current Affair did a segment on Petrol Stations and most the people running them we’re running them at very little profit margins or breaking even or losing money, while trying to keep there customers and praying that the petrol prices go down again.
From an observation consummer piont of view, i recently seen a service station that i beleive was the cheapest in Australia, 99c in a climate where prices are reaching for $110. This was an Indeppendent Service Station, they go buy the abbreiviated ISS i think? And are franchise or a chain i imagine.
If that’s anything to go by, i would buy my petrol there.
Just a few thoughts!
apparently the leases are great – long term, good return with first class clients. the problem is that once the lease runs out finding another tennant can be tough especially if the fuel climate has changed (rationalisation). make sure you buy one on a nice block near a good intercection. the land value alone maybe the fallback (ripe for development….)
Hello,
My friend and my self are planning to co-own a petrol station. I have an experience of 5 years working in petrol station. But as i was working for “woolworth-caltex”, every major issues were dealt at higher level. So I need an advise for what to keep in mind before I buy a petrol station. What questions i should put forward to an agent.
– Site is located on not so busy highway. Small shop is empty next to the pump which is also included in lease. How can i best utilize that shop. Cafe, car wash etc.
–I went to the Steve McKnight event last weekend in Sydney, in the live Q&A session one of the guy mentioned about buying a regional town gas / pterol station, Steve comemnts were no, unless the owner can have guarantee of Environmental Defect Free for 10 years.
SiteManager
Investing for a better future
9.67% nett return on $200K investment. hmmm. Free home and Nett income of under $20K ? Is that what you want ?
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
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