GAS STATION OWNERS SAY BIG PROFIT IS IN ALCOHOL SALES (AND Gas Station Gourmet Items Profits UP?)

Individual.com ^ | May 10, 2008 | JOHN WISELY

[fight_truth_decay]

Dozens ask state for license to sell it.

Record high oil prices haven't helped the bottom line of local gas stations, so many retailers have started selling something more profitable -- alcohol.

During the past two years, more than 150 gas stations across the state have added suds and vino to the pop, juice and milk that have long filled their coolers, according to the Michigan Liquor Control Commission. And dozens more plan to follow the trend as a way to remain competitive, industry experts say.

Alcohol abuse prevention experts worry that the additional alcohol outlets will result in more underage drinking, drunken driving and alcohol poisoning. For some of those same reasons, Michigan has restricted the practice in the past -- except for gas stations in rural areas. But lawsuits from station owners and other pressures have forced the state to grant more requests in recent years.

Independent gas station operators in urban and suburban areas say the drinks are needed in their stores to keep them viable against big-box retailers like Costco and Meijer, who sell both gas and alcohol -- though you have to go inside the stores to by alcohol, and the stores tend to be several hundred feet from the gas pumps.

"It's very important," said Najy Jaboro, who started selling beer and wine at his Sterling Heights station about a year ago. "I think it's probably upped my business by 20% or more."

And drinkers seem to like the convenience.

[fight_truth_decay]

As gas stations only have a profit margin of a few cents per gallon of gas, many have entered into a quicky marriage "of convenience" (sic) with fast food franchises like Dunken Donuts, the Lottery, etc. to make a profit.

When it Hurts at the Pumps, a pained consumer can seek some sanctuary in a Dozen or so Donut Holes, a blue Slurpy, Peanut Butter GooGoo Clusters, Whoopie Pies, Chocolate Hostess Pudding Pies and yes, there is even a little blog called "Gas Station Gourmet" where the blogger travels about and eats weird gas station food and then writes about it.

Super Start - A Complete "Hi-Potency" Vitamin and Mineral Packet Herbal Energy Booster purchased and ingested on route to Boise,
Cost: Unknown
(Purchased by someone called Dave, the bastard)
a laugh.

Susser, one of the largest convenience store operators in Texas is seeing merchandise sales skyrocket. Susser Holdings Corp. also supplies branded motor fuel to 388 independent dealers through its wholesale fuel division.

[alloysteel]

Gas Station Chic.

Only in America could this be seen as a viable trend.

[yefragetuwrabrumuy]

That reminds me about the champagne favored by rap stars: Cristal.

Someone remarked that Cristal is the finest champagne you can buy for $350 at a truck stop.

[SamAdams76]

I'm old enough to remember when a gas station was just a gas station. There might have been a candy bar vending machine or a Coke machine but other than maybe motor oil and maps, nothing but gas was sold there.

Now there are no "gas stations" at all. Just convenience stores that happen to sell gas.

Where did it all go wrong?

[chasio649]

I remember the little ding ding airhose you rolled over...i miss that.

[#1CTYankee]

On a business trip to Ohio I was introduced to drive through gas stations for beer.

Just shook my head, not that I have a real problem with it but wow, never see that here in Connecticut.

[Marie2]

I absolutely love the gas station cappucino you can get out of the little machines. You can pick french vanilla, or toffee, or a few other flavors. So good.

[#1CTYankee]

"I remember the little ding ding airhose you rolled over...i miss that."

We have one of those, the only full serve Mobil in the state.

Just what you would expect to see inside, a chain smoking attendant listening to the radio.

[PAR35]

Only in America could this be seen as a viable trend.

Gas Station/Convenience Stores in parts of Europe tend to look a lot like the ones in the US, although they sometimes carry items, such as fresh cut flowers and gourmet items that you don't usually see here.

[PAR35]

If you can’t get drive through beer at the gas station, do you all at least have drive through beer barns?

[chasio649]

That station should go on the historical register then ;)

[fight_truth_decay]

SIDEBAR on GAS:

I caught Dave Ramsey interviewing truckers on the road the other day. One that called in said his profits were up. Yes, diesel is definitely more. One trucker said the $100,000 spent last year would increase another 30% by the end of this year. But slowing the speed down to 55 saved money on gas, trimming business expenses that actually COULD be cut left him ahead of the game. He was also not heavy in debt, which made a big difference. Some routes are tightened up. No big truck in debt for. So business and people, adapt. When the rough times come (depends on a definition of "rough times")the tough keep going.

Also noted:

IRON MAN THE MOVIE OPENS AND MAKES OVER 100 MIL DOLLARS IN N.AMERICA IN A WEEKEND (you drive to get there)

ROCKSTAR SELLS 6 MILLION GAME UNITS OF GRAND THEFT AUTO IN 5 DAYS (probably drive to buy this game as well)

MICROSOFT SURPASSES 2 MILLION ZUNES SOLD

APPLE SELLS 2.65 MILLION iPODS A MONTH (same as above)

[fight_truth_decay]

..has that little burnt taste thing going- a good thing (like the top of creme caramel) not a bad thing!

[fight_truth_decay]

No..I saw that in the South, but not up North; dont know about the rest of the country.

[#1CTYankee]

"If you can’t get drive through beer at the gas station, do you all at least have drive through beer barns?"

Sorry, I have no idea what that is, gas stations here can't sell beer.

The only barns around here hang tobacco.

[fight_truth_decay]

Now you can own your own "ding ding airhose"

Driveway Signal Bells are the old-time gas station driveway bells that made famous the familiar "ding.....ding" when you drove your car over the black rubber hose at the full-service gas station. Years ago all service stations had one just like it.

More Info

[#1CTYankee]

"That station should go on the historical register then ;)"

They really screw you for the full serve as well, they charge about 5 cents less than the Sunoco up the street.

[annelizly]

I work at one of these rural gas stations and we LOSE money on every gallon of gas we sell. The only place we make money is on the inside sales and alcohol is the biggest profit. If it werent for the liquor and beer sales we’d have had to shut down. As it is we are doing well. And for michigan that is not an easy thing to do.

[calex59]

Actually, in CA gas stations(or convenience stores as they are known here)have always depended upon beer sales to give them profit. Gas has such a small profit margin that they only way they can make it is through beer and wine sales, mostly beer.

[buccaneer81]

As an Ohio resident who spent three miserable years as a denizen of Vernon, CT. all I can say is that CT alcohol laws were ridiculous in the early '90s. No retail sales after 8:00 PM. The bar owners must have loved that.

BTW, A "Beer Barn", commonly referred to here simply as "the drive-thru" is a retail establishment best described as a car-wash-type structure (without water, suds or wax) that you drive your car through to purchase all sorts of alcohol, cigarettes, lottery tickets, pop and snacks. Little wonder we're so fat here. We don't even to walk into the 7-11.

[fight_truth_decay]

Full serves which are near me are the least espensive for fill up; and are always, always, busy with attendants running back and forth.. bone for the dog, plus have an upscale (for here) car wash, oil changes in another attached building, web site to add your comments, and will turtle wax your entire car in spring-fall months after you exit the wash under the "blue" tent. Plus, 1/2 off the next car wash, if you come back within the week.

Course a mini mart as well with an attached Subway.

[VeniVidiVici]

But slowing the speed down to 55 saved money on gas

As long as he stays in the right lane I don't care how slow he goes.

[Freedom4US]

The EPA, for one. “Mom and Pop” gasoline service stations are all but extinct.

What I want to know, now that “pre pay” is becoming the norm, how do they make any money? I pay with a credit card which the credit card company charges the store a merchants fee. I don’t even have to go inside, and I’m not gonna buy chips or soda there. So they just lost money on that sale.
What if everybody did that?

[sergeantdave]

Read more closely. This story is about Michigan. The state has been in a severe recession since the the commie Gov. Granholm took over.

Of course profits are falling. The commie governor and RINO legislature tax and set fees on everything. Businesses have left by the tens of thousands. Productive citizens are fleeing by the hundreds of thousands.

The state just wants to make it easier for the millions of welfare bums and state bureaucrats (same as welfare bums) to buy their daily ration of booze. They don’t want these drunken slobs running down little old ladies with shopping carts in the grocery store and Walmart parking lots.

I fully expect the state to start pumping beer and wine from home faucets next. A stupid, drunk moron is easier to control than a sober working person.

[DugwayDuke]

“I’m old enough to remember when a gas station was just a gas station. There might have been a candy bar vending machine or a Coke machine but other than maybe motor oil and maps, nothing but gas was sold there.”

I thought I was the only freeper old enough to remember stuff like that.

I can remember my father’s favorite station. It wasn’t airconditioned. None of them back then were. The cokes were kept in a cooler that was filled with ice and they were so cold that they froze when opened. And, they were in glass bottles too. In southern Oklahoma in August, these cokes were a real treat. They kept their candy bars sitting on the ice in the coke cooler. The candy bars were frozen too. Often Dad would stop there even if he needed little gas just so he could sit and talk with the people there. Yes, they had chairs for people to sit in too.

I can also remember my Dad saying that he was going to buy a bicycle because there was no way he would pay 25 cents for a gallon of gasoline.

[#1CTYankee]

"We don't even to walk into the 7-11."

Wow, one stop shopping.

Most Packies still close here at 8:00,(But they can stay open until 9:00) still no sales of beer, wine or alcohol on Sundays and only packies and grocery stores can sell beer.
It's like living in the stone age.

[#1CTYankee]

"Course a mini mart as well with an attached Subway."

Nothing fancy like that here although they do sell kerosene. ;-D

[ByDesign]

“The EPA, for one. “Mom and Pop” gasoline service stations are all but extinct.

What I want to know, now that “pre pay” is becoming the norm, how do they make any money? I pay with a credit card which the credit card company charges the store a merchants fee. I don’t even have to go inside, and I’m not gonna buy chips or soda there. So they just lost money on that sale.
What if everybody did that?”

That’s what I do. The only other purchase I make is to swap out the propane for my grill, because the dolts at Home Depot make it a hour long process. Or I top off my tires, if the air pump is free. (Lots around here charge anywhere from .50 to a dollar.)

Of course, they hate me anyway, because I live half a mile from work, so I get gas maybe every 6 weeks, and drive a 6 cycl that gets I think 22mpg - never drive it long enough to really care. Paid 4.07 a gallon (Pleasant Hill, CA), yesterday. Sucks to pay that much, but it won’t be often!