Selling fuel might bring traffic, but it’s rarely the main source of income. For many fuel station owners, the real profits lie in what happens once customers step inside. This blog takes a closer look at where the money actually comes from—and why it might surprise you.
Turns out, nearly 60 percent of the profit made by fuel retailers doesn't come from the pumps at all.
Surprising? Maybe.
But when you think about it, how often do you walk into a gas station and walk out with just fuel? From snacks and beverages to car washes and lotto tickets, these so-called "non-fuel" offerings are doing the heavy lifting.
For independent retailers across the U.S., especially those partnered with buying networks, that extra margin can make all the difference between just getting by and running a thriving business.
Why Convenience Stores Are a Hidden Profit Goldmine
While fuel prices fluctuate constantly, the products inside your convenience store can offer a steady stream of income. Think about it: a small increase in sales of snacks, beverages, or car wash services can far outpace the profit margins on fuel. Gas stations, especially those with strong convenience store offerings, have become more than just pit stops—they're one-stop shops for busy customers looking to grab what they need quickly.
Fuel retailers who focus on expanding their convenience store offerings can effectively hedge against the volatility of gas prices. In fact, many retailers see a higher profit margin on convenience store products compared to fuel sales. For example, a convenience store's profit margin on a $1.50 snack is far higher than that on a $3 per gallon of gas.
Top Products That Can Boost Your Bottom Line
Fuel retailers can easily boost their profits without even touching the fuel pump. Let's explore some of the products and services that offer the best return on investment for convenience stores:
- Grab-and-Go Snacks and DrinksThe snack aisle is often the first place customers head to after filling up their tanks. Chips, candy, and beverages make up the bulk of impulse buys. It's not just about offering these items—it’s about offering the right selection. With many customers looking for healthier, on-the-go options, offering items like protein bars, bottled water, and fresh sandwiches can help capture that market.
- Coffee and Hot DrinksCoffee has become an essential part of the American daily routine, and fueling up with a hot cup is something many customers do on their way to work. Installing a self-serve coffee station or offering fresh brews can drive consistent foot traffic. And, with the right pricing, you can enjoy a high profit margin with each cup.
- Car Wash ServicesIt may surprise you to know that car washes can be a significant revenue stream. According to industry reports, car wash services can contribute 20-30 percent of a gas station’s total profit, especially if you offer a membership or loyalty program. Fuel retailers can also bundle car washes with fuel purchases to further drive sales.
- Lottery and Other VendingLottery tickets are another high-margin product. Most states have lottery programs that give retailers a generous commission on ticket sales. Similarly, introducing other vending machines for items like cigarettes or phone chargers can increase convenience for customers, driving additional sales.
- Foodservice and Prepared MealsAnother great way to increase convenience store profits is to offer hot food items like pizza, hot dogs, or pre-made sandwiches. With the rise of “food on the go,” providing a quick, tasty meal option can set your store apart from others, increasing foot traffic and overall sales.
How Affordable Buying Group Can Help You Expand Your Offerings
When it comes to running a successful convenience store within a fuel retail setting, having the right products at the right price is key. That’s where Affordable Buying Group comes in. By partnering with ABG, fuel retailers gain access to a wide range of products and services for convenience stores, from snacks and drinks to more specialized items like cleaning supplies and kitchen equipment.
Affordable Buying Group’s bulk purchasing power allows retailers to access quality products at competitive prices, ensuring you can maintain a diverse and well-stocked store without breaking the bank.
The Power of Store Layout and Product Placement
It’s not just about what you sell—it’s also about how you sell it. The layout of your convenience store plays a huge role in increasing sales. Studies show that customers tend to spend more money when they are presented with items in an appealing and strategic way.
- Position Impulse Items Near the Register: Products like gum, mints, and small snacks should be placed near the checkout counter. These items are quick purchases, and customers are more likely to add them to their basket when they're right in front of them.
- Keep High-Demand Items Visible: Make sure that your most popular items, like beverages and snacks, are easy to spot when customers walk in. It’s also essential to keep shelves well-stocked so customers can quickly grab what they need.
- Consider Grouping Products Together: Group related items together, such as chips next to soda or cleaning products near the car wash section. This can encourage customers to buy more as they realize they need additional items for a complete solution.
Creating a Loyal Customer Base with Convenience Store Perks
Fuel retailers can also increase profitability by building customer loyalty. Offering perks like rewards programs, loyalty cards, or even discounts on store items for frequent customers can help build long-term relationships. For instance, a loyalty program that gives customers points for every gallon of gas purchased and allows them to redeem those points for discounts on convenience store items can encourage repeat visits and increase spending.
The Importance of Monitoring and Adjusting Your Inventory
Lastly, managing your inventory is critical. Fuel retailers should regularly monitor which items are selling well and which aren’t. If you notice a product isn’t moving, it might be time to replace it with something more in demand. Keeping track of trends and customer preferences will help you maintain an effective inventory and ensure your store continues to thrive.
Conclusion
Fuel retailers can significantly increase their profitability by focusing on their convenience store offerings. With the right mix of products, strategic placement, and customer loyalty initiatives, fuel retailers can make more money without relying solely on fuel sales. And when partnered with Affordable Buying Group, fuel retailers have access to a reliable source of high-quality, competitively priced products that can help them achieve success.
By making a concerted effort to diversify beyond fuel sales and emphasizing the importance of convenience store profits, retailers can strengthen their bottom line and build a thriving business.