Cost of owning/running a new service station?

[GASWAGON]

I know of a town in Melbourne that used to have an independant service station about 30 years ago which got demolished for some reason.

The site it was on is still vacant and i'm wondering what it would involve to maybe build a new station which would save alot of locals having to drive from outer regions just to fill up.

Obviously it would have to go through local council/permits etc etc and the land would also have to be purchased plus setup costs like tanks, bowsers and shop.

Pretty big outlay i would think???

[Tassie f100]

$1m??

[GASWAGON]

Ye thats what i was thinking Tassie.

United have servo's in a few other areas of the region which is where i prefer to buy my fuel as its Oz owned.

Might contact them and let them know about the town/site?

[Sox]

I think it would be upwards of 5mil...

[Smoke Pursuit]

Lots of money...

[Tassie f100]

Well I was thinking pretty basic.A small shed/ shop and 3 pumps 1reg petrol 1 95 and 1 diesel.A compressor and a tap and a toilet.I know thats simplifying the job but if its only a small town/ lower volume don't need any thing too fancy

[comfortablynumb]

Mrs Numb is a service station manager. Employed by a franchisee who owns a few service stations.

Not much money in it, let me tell you.

All those 7/11 cheaters underpay their staff for a reason.......

[Vesper Martini]

If it was an old station, the storage tanks may need replacing too.

[zipping]

Originally Posted by Bevsta007

If it was an old station, the storage tanks may need replacing too.

This will be the expensive part and is the reason the site hasn't been developed into other uses. The council would likely force you to remove any contaminated soil as well as replace tanks. Makes it an uneconomic project.

[OzJavelin]

Originally Posted by Tassie f100

Well I was thinking pretty basic.A small shed/ shop and 3 pumps 1reg petrol 1 95 and 1 diesel.A compressor and a tap and a toilet.I know thats simplifying the job but if its only a small town/ lower volume don't need any thing too fancy

Like most things these days, regulations would mean it's not "simple" ... I'd hate to think of the EPA, OHS, town-planning, etc involved ...

Maybe just sell glass bottles of fuel on the side of the road like in Asia? ;)

[Itsme]

Originally Posted by CoolBFWagon

I know of a town in Melbourne that used to have an independant service station about 30 years ago which got demolished for some reason.

The site it was on is still vacant and i'm wondering what it would involve to maybe build a new station which would save alot of locals having to drive from outer regions just to fill up.

Obviously it would have to go through local council/permits etc etc and the land would also have to be purchased plus setup costs like tanks, bowsers and shop.

Pretty big outlay i would think???

The cost of rebuilding the service station is probably the reason why it still is vacant, not enough business from locals & passing motorists to make it economical for profit.

[wodahs]

Originally Posted by Bevsta007

If it was an old station, the storage tanks may need replacing too.

Don't know about other states , but WA , its my understanding now that stations changing ownership mandatory need the tanks changed and same with soil contamination after analysis taken after old tanks removed

As a truck driver i went thru a heavy period regularly delivering new tanks to sites due to this

[Mercury Bullet]

Originally Posted by wodahs

Don't know about other states , but WA , its my understanding now that stations changing ownership mandatory need the tanks changed and same with soil contamination after analysis taken after old tanks removed

As a truck driver i went thru a heavy period regularly delivering new tanks to sites due to this

And now there seems to be more and more above ground tanks going in.

Seen the new diesel tank at Chittering roadhouse?
Doesn't look too bad considering what it is.

[GASWAGON]

Rang United and they put me onto someone who checked the location on google maps while he was talking to me.

He said he'll pass it onto the right people who will look into wether thers enough traffic etc.

I drove to the site today and its quite big.

Could easily fit a big new station with all fuels.

Seems a waste of a very good location that does get a fair bit of traffic and not a single other servo around.

[Tucool]

A can of worms in my humble opinion, how long is a piece of string?

[nstg8a]

When I was living in my old place I developed a pretty good rapport with the owner of a small servo i used to fill up at all the time.
He told me that on a good day the servo made $80-100 profit on fuel, and it was the workshop that carried the whole place. That's why servos have basically become mini supermarkets.
Also why driveoff's are such a big issue.

[Itsme]

Originally Posted by nstg8a

When I was living in my old place I developed a pretty good rapport with the owner of a small servo i used to fill up at all the time.
He told me that on a good day the servo made $80-100 profit on fuel, and it was the workshop that carried the whole place. That's why servos have basically become mini supermarkets.
Also why driveoff's are such a big issue.

I thought the same once, I think the profit margins of fuel sales has increased.

[OzriderXR8]

Friends of mine many years ago bought some land on the outskirts of Melbourne, a large chunk near a major intersection was earmarked for a servo.

The fuel company didn't want to buy it, they wanted a 20 year lease that at the end they would walk away and leave everything behind.

That they did and it ended up being sold at a massive profit to another company who rebranded and moved in.

My friends made a fortune over 20 years and didn't have to outlay a penny.

Na$turds

[comfortablynumb]

Originally Posted by trublu

I thought the same once, I think the profit margins of fuel sales has increased.

The profit margins may well have increased, but I can assure you, the dumb smuck running the joint gets no extra.....

[sr71]

Full size commercial/franchised Service Station would cost big.
What about a small mechanical workshop, cafe, convenience store with just 1 Bowser. And an EV plug Recharger as well.
Like Albion Park (Wollongong NSW), where a small Old School Mechanic has a Bowser on the footpath.
Running costs and monthly Calibration of the bowsers needs to be considered. The building could be an ATCO site shed with a window rattler Air Con.

25-30 years ago in Bangor (near the tip, Nuclear Research and Hotel, NSW), there was an old shed/station. The owner had an E series GT ( maybe). Number plates were DW.---. His car was featured in a car magazine back in the 90's. Only mentioning this, as he could be on here.
That site was contaminated. And was cleansed, to council requirements, simply by turning the soil with a big excavator, for weeks. Townhouses were built there.

[OzJavelin]

Originally Posted by trublu

I thought the same once, I think the profit margins of fuel sales has increased.

My old man owned three different servos in the 80s .. and made almost nothing off them. His workshops kept the place going, but basically they were just money pits. I understand why there aren't many independents anymore ... it's a big volume, big sales numbers game to keep above water.

[GASWAGON]

Originally Posted by OzJavelin

My old man owned three different servos in the 80s .. and made almost nothing off them. His workshops kept the place going, but basically they were just money pits. I understand why there aren't many independents anymore ... it's a big volume, big sales numbers game to keep above water.

Ye i dont think they make much from fuel sales but from fast food, milk/drinks/bread maybe a battery here and there or some very expensive engine oil for top ups.

$80-100 per day would'nt even cover the cost of the attendant.

I do know of another town that has an independant where they do E10/91/95 and Diesel plus a very small 2 hoist workshop where they do services and tyres but their prices are alot higher compared to cap price servicing.

When i'm around that town i fill up there instead of the Shell who's always more expensive anyways just to give them some business.

[wodahs]

Tbh if it was me id be looking at a new site , above ground tanks , with the capacity sensors , and no shop just card setup as alot of country ones over here are going , low maintenance and overheads
useable 24/7 no attendant wages and some here have the ability for most or all the big Co's fuel cards as well as credit/debit

Then if you want to add some sort of shop you can go any direction as to what your doing in this area

[NTF6]

Originally Posted by Tassie f100

Well I was thinking pretty basic.A small shed/ shop and 3 pumps 1reg petrol 1 95 and 1 diesel.A compressor and a tap and a toilet.I know thats simplifying the job but if its only a small town/ lower volume don't need any thing too fancy

The key would be simplicity, don't even bother with a shop, that usually requires a second person which means wages. Most people will buy their oil and other vehicle related items from Supercheap/Repco so don't bother competing with them, also don't bother with a toilet either.

If you've ever traveled through Europe, allot of the servos are just banks of bowsers and a small place to pay, some I saw were no bigger than a phone box.

[NTF6]

Originally Posted by trublu

I thought the same once, I think the profit margins of fuel sales has increased.

Come to Alice Springs and you'll see what price gouging is all about, profits from fuel here alone would have to be sky high.

[MrEL]

If you have to ask , quite simply you cant afford it.

[Itsme]

Originally Posted by OzJavelin

My old man owned three different servos in the 80s .. and made almost nothing off them. His workshops kept the place going, but basically they were just money pits. I understand why there aren't many independents anymore ... it's a big volume, big sales numbers game to keep above water.

Don't want to sound rude but this is not the eighties, a lot has changed and I do personally know a couple owners of servos and believe me they are a cash cow on fuel sales coupled with the cream from the shop sales, but if any joe blow asks them they will just say they are just surviving.

[Junkyard-Dog]

I would put it in the "if you have to ask, you can't afford it" basket.

[GasoLane]

Originally Posted by trublu

Don't want to sound rude but this is not the eighties, a lot has changed and I do personally know a couple owners of servos and believe me they are a cash cow on fuel sales coupled with the cream from the shop sales, but if any joe blow asks them they will just say they are just surviving.

I'd have to go with this line of thinking.

I live in a town of appx 60,000 people, United opened a new servo, with Macca's attached, a little over 12 months ago.

Now I see that another (unknown brand) is about to be built. Someone's confident of making money.

[danzvtil]

An old site would need a 2-300k removal of old tanks and decontamination before you lift a finger. Current environmental standards would cost huuuge dollars, old sites have to now comply with vapor emissions, adding $ to aging infrastructure.
I've seen a few new stations now with above ground tanks, which is mandatory if you have a high water table or are near the beach, problem is, it doubles the space needed, all big $$$$.