Metro or Regional Service Stations?
When looking for a service station to buy, there are many aspects of the business to consider. Location will likely be first on the list since the direction of traffic flow can “make or break” a service station. Service stations depend on various factors to be successful. No two service stations will be the same in profitability. Metro locations are highly sought after for the convenience and easy staffing aspects. Regional on the other hand has only just started to have its place in recent years which was long overdue. Metro: Metro stations can be based in any suburb and can travel to the location with ease & also have all the benefits of city dwelling. However, competitive market and customers are highly volatile to the market situation. Regular customers who have been a given, in the past are starting to become a thing of past in the metro locations, as shoppers look for discounts, value for money and great customer service. As an operator you have to be on the game all the time, “there is no off day in customer service”. Heavy discounting by supermarket giants on the other hand is a hard act to follow, the only reason other service stations are still surviving even after discount coupons from supermarkets is customer service independents. Staff manning the console in the supermarket based service stations, are simply there to do a job, they promote what’s in front of them with regular welcome & goodbyes. The independent service stations have more personal service, the staff and/or owners who work in the business know their customers, have a small chit chat and know their customers well so they promote only what they know their customers will go for. Service station customers are shoppers for necessity, they hate paying for fuel, and so great care should be taken to make them feel good. Regional: A major setback for owning a service station in a regional area is we have to move to that location and mostly change our life style to suit the business, but the benefits are plenty, we still have regular loyal customers who support the local business. The business is reasonably priced, and won’t break your bank to buy a decent service station in a regional area. Competition is not heavy but just healthy in a regional area, other service stations are known so they don’t tend to undercut. Profit margins are generally more when compared to metro. In recent years regional service stations are gaining more importance in the buyer’s market. Buyers who are looking to start their business in the service station industry are looking more towards regional areas, as they are priced reasonably and have low overheads. We can expect an increase in regional service station sales, since buyers are now keener to buy in regional areas rather than metro service stations. If you need any advice or appraisal for your service station, please contact me by email at firstname.lastname@example.org.