2First part (EXPENSES)
José Luis, we have the income. Now we have to see, expenses, what it may cost us to manage this gas station.
4º. HOW MUCH I HAVE TO HIRE PEOPLE?
The greater spending an service station staff constitutes.
While in Spain are being installed stations neglected (calls stations Low Cost), are still scarce and specific points. The habits of consumers can not change the overnight and still not many years ago even, when we were going to take gasoline, most drivers, nor car down. The passage that "serve me" to "give me myself" the gasoline It has taken a lot, and in many cases, especially older people, have not yet been used and seek stations "Assisted". More so, As no differential price between assisted and self-service.
- How will we manage this station?.
In principle the service station will be in self-service, I do not deny that at certain times and when there is not much traffic on the track, not take the customer out, is a detail and is valued.
To manage a gas station these features, taking into account the times of the station, different shifts, days off, holidays etc. ... it would be normal 3 a workforce and an additional person for 3 months, that covered the vending holidays.
But .... As I will be the Station manager, ya me arreglaré yo, to avoid having to hire additional one. I'll cover holiday, and shift rotations so I'll spare the extra expense of that person.
Therefore, we can say that we will 3 person on staff. Including as a staff person myself. Also, for me to carry all the extra work gas station. Orders, of fuel, convenience store, stock control, paperwork, etc.. We'll I'm going to make hours in the gas station.
The workers compensation, is contained in the Agreement State Service Station without going into great detail, we can say that the cost per person, in the category of dispenser, would be that everyone would have the service station, would 23.000,00 € / year, including SS and SS by the worker in charge of the company
Therefore, we have the first component of expenditure gas station:
- Number of employees: 3
- Spending Unit: 23.000 €
- Gasto total: 69.000 €
5º. NOW THERE CARDS?
José Luis, the oil, Do you have some kind of loyalty card?
It, Fran, as I have commented, has loyalty card which is non-nominative, offered in all stations and that implies a discount of 3% on the price of monolith at all times.
The Loyalty cards are a good tool marketing, to get customers that have, refuel again our station. Whether by earning points to get gifts, or with direct discounts on the retail price contained in Station monolith.
In this case, according to data provided by the oil the 32% of liters sold at the station have been loyalty card. In this case, as the benefits are for both parties, the oil and manager, discount the cost is shared by 50%.
About, we have another component of cost of service station:
- Liters sold 2.000.000
- Liters sold card (32%). 640.000 liters
- Fuel price. 1.400 € / litro
- Amount card liters sold 896.000 €
- Discount Amount (3%) 26.880 €
- Discount by the EE.SS. 13.440 €
6º. WATER?, LIGHT, PHONE ....?
One of the aspects that you have to keep in mind when making your calculations on the profitability of the gas station, are the costs of what is often called external supplies, namely, water, light, telephone and other expenses.
The most important of all is the cost of electricity. The gas station must always be well lit and for that power consumption is important, but as part of that lighting is by image oil, marquee, monolith, other signaling, the oil will work with you, abonándote a part of the cost of electricity. In this case we consider that there may be about 30%.
The electricity bill will be charged to your account, but you facturarás him to oil the amount of charge that has been made in respect of the electricity expenditure collaboration.
The average monthly amount of light, usually about 800 € / month, considering that during the months of varano be less than winter, as there are more daylight hours in which it is not necessary to have electric lighting.
The water consumption, varies depending on whether an station is connected to the supply network or it has its own well, if you wash or do not have. In this case as it is connected to the network and we have the laundry station we can consider that we have a spending 110 € / month of water.
Regarding the telephone, today and how business works, is essential to have good communications, including data lines, Voice plus. The computer system that oil We will, which may in some respects be controlled remotely, datafonos the need for bank card payments from our customers, and even the connections needed to be present in social networks, not forget that every day that passes is one aspect that becomes more important. With the deals that can be found today with a reasonable and controlled the phone, consider monthly spending 100 € / month for this item.
For other expenses that may have supply, cleaning, gardening, stationery etc material.. we consider 50 € / month.
With all these recitals, we have another part of the expenses that you can have in the gas station.
- Electricity costs. 800 € / month
- % Electricity consumption by the oil 30%
- Total cost of electricity 560 € / month
- Water consumption. 110 € / month
- Communications. 100 € / month
- Other expenses. 50 € / month
- Total expenditure. 9.840 € / years
7º. HOW MUCH RENT PAYMENT?
At this point the work we are doing, I realize that mentioned anything nohemos payment of rent, or canons by my friend José Luis to oil.
- José Luis: How much rent they ask?
Good, here is to consider various aspects:
On the one hand the cost of leasing the station, and ask me 2.000 € / month.
On the other hand, I also call for a % both sales convenience store, as the washing. I say that having the image of the oil, makes it a plus for customers entering the gas station well buy products shop and wash the car. Naturally somewhat, because they also tell me that support me in promotional items, I will provide training on convenience store, I provide access to providers shop I would not have, they put the washing machine, ultimately also want some benefit from the investments have been made in this regard.
- And how much are these fees?
We must clarify some things, but more or less, to the issue of convenience store should pay a 3% on the turnover. Namely, a 10% the margin I get it. Everything is negotiable, since not all categories of items have the same margin, and there may be a different fee depending on which articles are treated, but on average and have a data as close to reality 3% is an appropriate figure.
And by car wash, given the high margin having, ask me for a 20% the amount of sales.
With all these new data, and could fill a new line in our "bottom line"
- Station Lease: 2.000 € / month
- Canon Store, (3% sales): 2.880 € / year
- Canon of lavados, (20 € of sales): 2.555 € / year
- Total leases and royalties: 29.435 € / year
8º WHAT IF SOMETHING IS SPOILED?
- Jo sé Luis. What if you mess up something?Who will repair?
At this point, I have 2 odds.
- O contract on my own preventive maintenance contract or if it, I take care of the repairs of the damages that may arise
- The second Possibility, subscription a la oil fixed monthly amount for expenses of maintenance and they take care of everything. All I had to do was call maintenance companies they indicate me depending on the fault that was.
Here my recommendation was to avail himself of the second option. Their concern must be to sell gasoline, sell shop and sell washed, should not be aware of who I seek repairs I repair this or who the other. Also, sure the oil had contracts with creditworthy businesses and prestige that would solve the problem. On the other hand, either the amount payable was crazy, 250 € / month, for problems that could be solved.
And we had another line of the income statement
- Amount of maintenance expense: 250 € / month
- Total maintenance expense: 3.000 € / month
9º. HAVE TO DISCLOSE MY STATION
I also think one of the things you must do, is to publicize your service station, namely, the public to know that now you are the Station manager that has changed the direction of it and that things in gas station not going to stay the same.
You'll have to do promotions, spend on advertising, posicionarte in media and for all this and more investment is needed to make. If you want new customers, if you want to increase your sales figures, have to spend on Marketing.
Fran, I agree with you.
He had thought of as allocating expenses marketing 0,5 cents per liter to sell.
I think right, well as a new line in our chart
- Sales in liters: 2.000.000
- Spent marketing: 0,005 € / litro
- Total gasto marketing: 10.000 €
10º. Ask me a safe
It is normal for oil asked to opt in insurance.
There are two situations to protect. On the one hand safe in certain circumstances to protect the assets of the service station, but also need you to be covered for different contingencies that may arise in the daily work of the station, accidents, small bumps, dispensing errors, etc ...
Priced very consistent with what is in the market to hire these contingencies, should not cost more than 2.500 € / year and would be covered from liability.
Another new line numbers.
- Cost of insurance: 2.500 € / year
11º. HOW YOU WILL PAY THE FUEL?
They have told me that the fuel is paid at the time of ordering, namely, in advance, but right now I do not have the necessary liquidity to do so and could use a little delay payment.
It, can do. The oil companies, are willing to make deferred payments, as long as you give them a guarantee that the payment at maturity will be effective, therefore you will need to give a bank guarantee and that it sells the station with a stay of 9 days, ask you guarantee amounting to about 200.000 €. We visit different banks and then adjust, but I think it would not be unreasonable to think we could have a cost 1,5% on the amount of the guarantee.
Also, I think we should consider other financial expenses, as card fee, interest payments etc.. and fingers not catch us consider some 1.000 € / year
Fill? Another line of the income statement?
- Amount of guarantee for deferment: 200.000 €
- Guarantee commission: 1,5%
- Endorsement Expense: 3.000 € / year
- Other financial charges: 1.000 € / year
12º. THERE NO MORE CHARGES?. WANT NO SURPRISES.
José Luis, much they want to tune, always unforeseen conditions may not have considered, and we did not think that could ever happen.
Therefore always, in each budget or forecast income statements, I always leave a little cushion 6.000 € for what might happen
We will in this account the same. And thereby, we already have all the expense lines gas station
- Other expenses: 6.000 € / year
SUMMARY OF KEY BUSINESS EXPENSES SERVICE STATION
As we've done before with income gas station, go now to put another table summarizing all expenses have been listing above.
We have the income side and expenditure on the other. Well, it's very simple, we have only to combine both picture and see the interest of the business for us.
At this point and before the picture that was presented, Recommend le mi amigo José Luis, that did not get into this business. However, and after everything that we had talked for hours, Annotated, and impressions of how it was currently being exploited gas station, I was left with the impression that something could be done and that if we did, what at first was not business if it could be.
We were tired and went, but we agreed that the next morning and we would like you could give a pleasant surprise. At this point and before the picture that was presented, Recommend le mi amigo José Luis, that did not get into this business. However, and after everything that we had talked for hours, Annotated, and impressions of how the business was currently being exploited, I was left with the impression that something could be done and that if we did, what at first was not business if it could be.
I went home and my CALCULATION TOOL FOR PROFITABILITY IN THE MANAGEMENT OF A SERVICE STATION easily made a series of simulations, a more risky and some less, until I found one that I thought would be interesting and very realistic, with which mount the following income statement:
The next morning, cuando Volvi to see José Luis, submit the new data. In view of the results, and with small changes and efforts had to be made, and he understood that they were achievable, he was very happy, and told me he was going to think through all these situations and would take a decision. He also told me, thing I praise much, he appreciated my help, because without the collaboration of professionals, would have been very difficult to get to be clear about everything related to the business that had been proposed. We close the paper and we do not talk more work. We spent the remainder of the weekend to enjoy my people. That look is nice, and not because I say so!
At this stage and with the important changes that are happening in the sector stations and with oil companies forward transfer facilities are now directly managing to be managed by third, must be very careful and do good business accounts, Small changes can mean the difference between success or ruin a business and it's highly desirable, the help of the professionals, you know as stations are managed, to avoid problems with hindsight.
This is not a closed scheme. Depending on the time and negotiation to perform each oil company, may be modified conditions of the contract, such as, discount percentage of the cards to share, maintenance fee, calculation of the lease, the insurance amount may vary depending on the company and coverages we hire. There are also other aspects such as tax returns, cost security adviser and other financial costs such as hiring a credit line.
For true and complete, if any person or company as José Luis some oil company has offered you managing a gas station and think you need help, not hesitate to contact. Also if you think you need we could provide our CALCULATION TOOL FOR PROFITABILITY IN THE MANAGEMENT OF A SERVICE STATION
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