Re: gas stations
[ QUOTE ]
well you can own the business, but make someone else work at it. (like in any business).
you suffer a chunk in profits, but you gain a huge amount in terms of $return/work (you work 95% less, but dont suffer 95% less profit)
[/ QUOTE ]
Its a little more complicated than that IMO. For example, the profitability of a gas station is based on growth of the particular area you are in combined with purchase price. With todays high gas prices, people are willing to make go a greater distance to find cheaper gas. So the competition bewteen gas stations tends to strain profit. For every one suceesful gas station, you can find a dozen on the verge of bancuptcy. And despite popular belief, high gas prices are cutting into the profit's of gas station owners. One reason for example my brother is able to keep his head above water is that he only has one other person working with him. He essentially lives in the gas station. This cost cost by an enormous %. On the other hand, a family friend has about 23 gas stations that he started purchasing in the California area about 20 yrs ago.
So again, like any other business, there is a great deal to consider. Gas stations also do not have a high barrier to entrance which is one thing to consider. Hope that helped. I am not trying to discourage you from purchasing a gas station. Just things to think about.
|