Are gas stations a profitable business? If it is well-run and in a high traffic location, owning a gas station in New York can certainly be lucrative.
New York gas stations with convenience stores are projected to generate around $12.2 billion by 2024, so what does this mean for entrepreneurs wanting to buy a gas station in this state?
This sector will always be in high demand, particularly in highly populated states like New York. Buying a gas station can be a good investment, but it’s important that we offer you a comprehensive analysis of both the benefits and the risks.
If you’re wondering how much a gas station owner makes in New York, the average gas station can make up to $100,000 in sales every month. If you deduct estimated expenses from this, a profit of $30,000 is left over.
Here are the top reasons why buying a gas station in New York can be beneficial and profitable:
The product is always in high demand
Regardless of where you live in the US, most people need to commute by vehicle, which requires gas or charging stations. This constant demand means that gas stations remain a relatively stable industry, provided vehicles remain on the road. Transportation is essential to most people’s daily lives, so the need for gas stations will coincide with this.
And while a shift to electric vehicles may seem like a threat to this demand, gas station owners can incorporate these new developments into their service. In 2022, New York only had 3,085 charging stations, which is a 5.8% share of all US charging stations.
You can diversify your income
A benefit of buying and owning a gas station is that you’ll have the freedom to open other businesses at your location.
Your profitability can significantly increase if you sell more services or products. If you have the funds available, you can include a car wash, an auto repair shop, a convenience store, and electric charging stations. You’ll just need to make sure that you get relevant building permits.
No specialized skills are required
While any business owner will need to have business and management expertise, buying a gas station doesn’t require specialist skills from the owner or employees.
This means you can keep your labor costs to a minimum, as you’ll only need to hire entry-level employees for the most part. Of course, if you plan on opening an auto repair business alongside your gas station, you’ll need to have experience and skills to run it (or hire someone who does).
Existing gas stations don’t face challenging barriers to entry
The US oil and gas sector have strong barriers to entry, so starting an independent gas station is very difficult. Buying an existing gas station means that the business you choose likely has an existing vendor, real estate, and security systems. This puts you at a huge advantage, and you can start generating profit once you find your feet.
Before we end this article, it’s important that we advise you on the risks of buying a gas station. While we don’t want to deter you, it’s crucial that you make an informed decision. Some of the risks include:
- Your business will see high levels of consumer fluctuation.
- You’ll work long hours (unless you hire someone to oversee the operation).
- It can be challenging to switch to a new vendor.
- It can be dangerous to own a gas station (flammable liquids and targets for robbery).
- Profit margins can be thin.
How BusinessesForSale.com can support you
Buying a gas station in New York can be a profitable business venture, but it does require hard work, staying up to date with market conditions, and adding other services to contribute to your income.
So, how much does it cost to buy a gas station in New York? We have multiple gas stations for sale in New York, and a quick glance at the listings shows that asking prices range between $115,000 to over $1 million.
If you’d like to understand more about how to choose the right gas station, feel free to read our helpful article on buying a gas station.
We hope this article has helped you realise the wealth and fulfilment you can access through buying a gas station in New York. We wish you all the best!