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Arshad Mahmood
- Posts: 3
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20/07/2008 15:09:10
- personally if you ask me the petrol business is going downhill. ive seen lots of petrol station close down and apartments have been built over them or they have changed in to a car wash.
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Jamie Goldsmith
- Posts: 126
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21/07/2008 09:55:49
- Dear Vaidas, What is the purchase price? What is the T/O? What is the location? There's no argument that as folk feel squeezed financially they will question where they spend their money. Unfortunately most people still have to commute. the choice factor accounts on average for 10% of fuel sales. Ok, so they won't be popping out for a picnic or visiting the Garden Centre on Sunday, but they still have to get to work. Outside of London public transport is pretty ****. Most people will use their car. Petrol is set to hit £6.00 a gallon before the year end. I could think of better businesses to buy but if the business is in the right location and it's generating good turnover it might be worth looking at. Every sector suffers its problems from time to time. But to the best of my knowledge I have not seen a sector disappear. Maybe the other contributers can name one.
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Greg Eaton
- Posts: 4
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06/08/2008 00:11:08
- but no petrol station makes a profit from selling petrol.. they make a profit from retail..the petrol is just a gimmick to get the punters in the door (he says with a pinch of salt)
So think of it as a retail business and value things like location on that - can the site support effective retail, what is the competition etc.
- my nearest petrol station went bust when tesco metro opened up 10 doors up the road, funnily enough they closed 2 months later along with another conveneience store and the local newsagent...
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Jamie Goldsmith
- Posts: 126
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06/08/2008 08:23:36
- Hello Greg. Your the man, concise pointed advice. You must be good. David and Stephen cannot add to your comments. Do us all a favour, your advice is proceless. PLEASE KEEP UP THE GOOD WORK. Don't disappear after 2 months.
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David Rhodes
- Posts: 264
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07/08/2008 09:14:43
- I was an independent consultant in the petrol industry in the 1990 so know a little about the subject! I assumed that as Mr Ropeika did not answer Mr Goldsworths questions that he is was longer interested in the question asked.
If you ran a petrol station in the 1970's and 1980's you were making big money. In the 1990's you could still make a reasonable living out of running a single service station.
Shell now expect you to run a "cluster" of 6 stations for the same amount of money c. £30,000. That means having the issues of trusting staff members in 6 outlets. The propensity for stock losses are huge meaning that any unitentifed shrinkage will hit you hard.
Margins in the sale of petrol are normally 1 - 2 pence a litre. Normal Wet Stock losses are 0.3% but if you "lose" 1% which may be due to the oil compnay delivering a hot product, you margin will be wiped out. And that is not taking into account drive offs and no means of payment which can total over £60 a hit now.
On a previous post I mentioned that an ex client of mine called Oil Companies "theives, cheats and liars" I don't think that this has changed. Stay clear.
Horizon Business Agents www.horizonbusinessagents.co.uk
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Jamie Goldsmith
- Posts: 126
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18/08/2008 09:18:53
- Enquirers, please run a google search for this term "Shell now expect you to run a "cluster" of 6 stations for the same amount" I am sure you will see that the content has been lifted from other sources. This guy's not an expert!!!
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