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So You Want to Get Out of the Service Station Business

It is not unusual in any group to hear some say that they have had enough, they want to get out. Over the years and recently I have heard some of our gasoline dealers say thay want out. There are three main complaints:

1. Difficulty with the public.
2. Difficulty with the employees.
3. Selling beer and cigarettes.

The problem is not so much the public and the employees in general as it is with "the lowest common denominator." The first ten customers in the day might have quietly paid for their purchases and even said "Thank You" or "Good Morning." It is the tenth one that berates you personally for not accepting his expired credit card and creates a 15-minute scene in the process. All of the employees have reported for work except the one that caused you a $200 fine for selling beer to a minor yesterday. These are legitimate complaints. All businesses have their unique problems, but it is true that service stations deal more often with these "lowest common denominators" than other retail businesses.

The problem with Beer and Cigarettes is varied.

1. It seems that the customers offering the biggest problems are those that are offended that they are being "carded."
2. Beer customers are often drunk and obnoxious even before they make their purchase.
3. Many dealers simply do not like selling Beer because of moral or religious reasons.

I would like to suggest that sometimes it is not really that the dealer wants to get out of the whole business.

1. Dealers that have repair bays seem to be under the greatest pressure. Maybe you only want to get out of the auto repair business. Doing so has been a growing trend.
2. Maybe you want to get out of the Beer business. Unfortunately, I do not know of any dealers who have realistically stopped selling beer and kept the business in good shape. It may be possible, but I doubt it.

So, if you have made the decision to sell and get out, where do you go? Here are some businesses to which some dealers have gone in the past:

1. car wash (See article about Clean Touch Wash & Lube in Mandeville, Louisiana)
2. used car dealership
3. car and equipment rental
4. Others have simply sold one station to buy another without service bays. Still others have closed in the bays and converted the store to a successful C-store.
5. miniwarehouses
6. franchises such as Meineke and SpeeDee Oil Change

For those who are serious about getting out, I suggest four sources of information:

1. Enlist the help of a professional business or commercial real estate broker.
2. Subscribe to Entrepreneur magazine.
3. Regularly study the "Business Opportunities" section of the newspaper classified.
4. Pick a growth area where you would like to have a business. Drive about and explore. If you see a business that interests you, talk to the owner. Businesses are sometimes sold without being put "on the market."

Copyright © - 2002 Dutch Hawkins Mandeville, LA USA - All Rights Reserved

December 16, 2002