Yes Arco does charge extra for credit. Here’s is what I do: I buy arco gift cards from grocery stores using my 6% cash back card. This makes the lower Arco price even lower.
1 Like
Makes sense to me. I thought they only made a penny or two per gallon.
Now, lottery tickets though… How much you want to bet that they make more on alcohol and lottery tix than gas?
Well, gas sales is not $0. Here’s one of the ads on craigslist:
Gas station - $130000 (South Bay)
Very good location , Seller claims gas 50000 at 40 cents margin , Mart 5000 at 35% margin per month . U-H makes $ 1000 average per month . Lease three years , Rent $ 7400 per month .
For more information call Lee at show contact info BRE # 01909309 Liberty Business Advisors of San Francisco Inc .
40 cents per gallon x 50k gallons = 20K a month.
5k convenient store sales x 35% margin = 1.7K a month
How much are all the other costs like labor and insurance?
How much does cleanup cost when you’re done? If the place is leased, it’ll be in the contract.
1 Like
I don’t think it will ever be “done”. The end game could be sell the lot to builders for gazillion dollars I guess? Then it will be all factored into the price.
I have been hounding the CL business for sale section for a while. All the mom-and-pop business have a PE ratio of around 2. So using that gas station as an example, since they are asking for 130K I would guess the net profit - after all the costs like insurance and labor, would be around 65K.
It’s a nice little business I think. Especially if you can get financing and not have to pay the whole 130K upfront. You just need a couple of these and you can show your boss the middle finger and walk out the door.