What is your Gas Station worth?

What’s a store worth?

Let’s take a quick look at underwriting a location so we can quickly determine if it’s a viable endeavor.

The attached spreadsheet is a basic guideline that you can use along the way. To get more specific about how a location is doing here are the averages that I like to use.

Categories listed in order of sales

1. Cigarettes – 30% of sales at a 15% gross margin

2. Packaged Beverages – 20% percent of sales at 40% gross margin

3. Candy, Salty Snacks, Grocery & Automotive – 20% percent of sales at a 45% gross margin

4. Smokeless Tobacco – 10% of sales at a 35% gross margin

5. Beer & Wine – 10% of sales at a 20% gross margin

6. Hot food, Fountain Drinks, and Coffee – 10% percent of sales at a 45% gross margin

For example:

If a store does 100,000 per month in grocery sales I would expect their sales and profits to look something like this. Obviously, this is different at certain locations but it’s very close as an industry.

Cigs – $30,000 in sales $4,500 gross profit

Beverages - $20,000 in sales $8,000 gross profit

Candy, etc - $20,000 in sales $9,000 gross profit

Smokeless - $10,000 in sales $3,500 gross profit

Beer & Wine - $10,000 in sales $2,000 gross profit

Food & Drink - $10,000 in sales $4,500 gross profit

Total $100,000 $31,500 gross profit

Best of luck and feel free to DM me for questions.