We know it can be a struggle to make a site more profitable. Sometimes owners focus on business matters that are out of their control, like competitor pressure. Instead, focus on changes that can maximize your site profitability.
Owners who are successful in competitive markets are masters of these tried and true techniques. Once you’ve read through these tips, don’t hesitate to contact us to learn more about how you can maximize your site’s potential.
FIVE WAYS TO INCREASE PROFITABILITY
Fresh, Updated Exterior:
Consumers assume that what they see outside is what they can expect inside. Your exterior presentation is all a consumer can evaluate before pulling into your site. If your signage is old, or the station looks run-down, consumers will look elsewhere.
The good news? Changing your exterior doesn't always require a complete rebuild. Simple cosmetic changes like a fresh coat of paint or a freshly repaved lot will breathe some fresh air into your site. High-quality signs, awnings and lighting also contribute to an overall feeling of higher quality. By projecting a commitment to aesthetics on the outside, you're telling consumers you care.
Well-Kept Interior and Bathrooms:
A nicely kept exterior may attract first-time or passerby consumers, but to keep those consumers coming back, your interior needs to match. Bathroom cleanliness is a key differentiator between high-quality and low-quality sites.
Also, overall store appearance matters. This means ensuring that your shelves are stocked and dust-free, the floor is clean of debris and stains, and the counter is well kept and organized.
Programs and Tools:
To attract loyal consumers, a key program to utilize is a loyalty card offering to keep them coming back. Furthermore, other offerings like buying groups, fleet cards for business consumers or credit card programs will help ensure that you are getting the traffic and margins required for healthy profits. While you may think it is difficult or costly to initially register, over the long term these programs pay for themselves.
Sometimes gas station owners are too quick to slash prices on high-demand items, like tobacco, to bring in additional traffic. While this strategy may work at times, often owners slash prices to the point where they are taking a loss. Don't give up the profits on your highest margin items without ensuring that you'll make up the revenue somewhere else. Your convenience store is a revenue generator. Ensure you don't hamper its ability to generate cash flow.
Certain consumers will favor branded locations where they can service their car. A site complete with air pressure stations, clean bathrooms, a car wash and vacuums will bring people in the door. Similarly, metrics show that something as simple as providing squeegees can increase site satisfaction. By ensuring you don't skip important amenities, you'll open up doors you didn't know existed.
Each of these items alone won't guarantee success. But we see the top sites consistently execute on all of them. If you're not paying attention, you could be letting money slip through your fingers.
Use our Breakeven Calculator now to measure the current health of your site so you can see the positive impact of the changes you make.
Source: Based on interviews by Sales Benchmark Index