High Volume Gas Station With Property In Indianol

Description

Gas station and convenience store for sale with inside sales averaging more than $100,000 per month. The deli is a significant part of the operation, while the fuel side currently has room for additional development.

Inside sales

• Average inside sales: more than $100,000 per month
• Deli sales: approximately $43,000 per month
• Reported deli gross margin: approximately 50%

At the stated sales and margin, the deli produces approximately $21,500 per month in gross profit before labor and other operating expenses.

Fuel operation

• Average fuel volume: approximately 10,000 gallons per month
• Average stated fuel margin: approximately $0.20 per gallon
• New Gilbarco pumps installed this year
• New Passport POS system
• No current jobber agreement
• Diesel not currently offered

At the stated volume and margin, fuel generates approximately $2,000 per month in gross margin before fuel-related expenses.

The absence of a current jobber contract gives a buyer the ability to negotiate a new supply arrangement. Any incentives, equipment support or assistance with adding diesel will depend on the terms offered by the selected supplier.

Additional revenue

The store does not currently offer lottery, an ATM or an air machine. These may provide additional commission income if approved and economically justified.

Profit and management

• Reported monthly net profit: more than $22,000
• Monthly payroll: approximately $10,500
• Seller involvement: approximately 15–20 hours per week

The seller states that the net-profit figure is after payroll and other operating expenses. An active owner may be able to replace some paid labor, although any resulting increase in earnings will depend on the hours and positions actually assumed by the buyer.

Store and equipment

• Approximately 2,500 sq. ft.
• Building constructed in 1999
• Store renovated last year
• New Gilbarco fuel pumps
• New Passport POS system

Buyers should review renovation invoices, equipment warranties and ownership records to confirm what is included in the transaction.

Location

The business operates along a commercial corridor with reported daily traffic of approximately 19,512 vehicles.

• Median household income: approximately $43,000
• Approximately 2 hours 20 minutes from Memphis, Tennessee
• Approximately 1 hour 30 minutes from Jackson, Mississippi
• Several nearby hotels
• Multiple nearby schools serving more than 2,000 students and staff according to the seller

Traffic counts, demographic data, school population figures and drive times should be independently confirmed if material to the acquisition.

Growth

• Add lottery sales, subject to approval
• Install an ATM and air machine
• Add diesel fuel
• Negotiate a new jobber agreement
• Increase deli and prepared-food sales
• Increase owner involvement to reduce payroll where practical

Due diligence

Buyers should verify inside sales, deli margins, fuel gallons and margins, payroll, net profit, inventory, equipment ownership, renovation costs and historical tax returns before closing.

Fuel-related diligence should include underground storage tanks, environmental records, pump and POS ownership, fuel-system compliance and any obligations created by a new jobber agreement. Lottery, food-service, tobacco or other regulated product sales should also be reviewed for applicable state and local licensing requirements.