Re: gas stations
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The profit margin on gasoline is extremely low. That's not where you make your money if you own a gas station. The money is made in the convenience store, especially on cigarettes.
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ORLY? Retail markup on cigarettes is about 8%.. Cigarettes are the primary sales driver of convenience stores but not the most profitable product by itself.
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A few members of my family have ran gas stations over the past 25 years or so and I worked at one when I was younger. Smokes were always the highest profit item in the store. While true that other items might have higher margins nothing sells in the store part in the volume that smokes do. On my shifts I'd probably sell a carton of smokes for every drink/chocolate bar sold and we did push them.
That said back when I worked there we didn't have the whole convenience store setup like a lot of places now. More like a booth with a fridge and some racks with candy/chips.
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