When you’re involved in a gas station or convenience store purchase, you crave information and have a lot of questions to ask. When he takes ownership, he wants to be sure the business will turn a handsome profit from day one. Keep in mind, however, that it’s never a good idea to settle for that scenario—here are six proven strategies to turn your new place of business into a quick money-maker.
Tip One: Get aggressive from the start and apply pressure point marketing. When a business is under new management, it’s a great time to attract new customers and make sure your station and store become the place of choice for a host of new people. Think of some new ideas, for example, some large signs announcing a price reduction for a limited time or a free cup of coffee served at the pumps for the first week. Establish your brand with energetic, uniformed employees who hand out coupons or other incentives at each pump. Shaming the previous owner after only a week of hard selling.
Tip Two: Go out and find new customers by co-promoting with other merchants in your area. Tour the town and see where people are shopping. For example, make a deal with the supermarket manager to distribute your coupons if applicable. Car washes or tire dealers are great places to co-promote. Be creative!
Tip Three: Start talking to your providers. Now is the time as a new owner to negotiate aggressively as you have the upper hand. Everything in your store needs to be renegotiated, from coffee to sandwiches to magazines. Open the playing field by inviting other vendors to bid. This will focus the attention of the above providers and price reductions will follow. Be sure to set return privileges. That way you can sell additional products in your store, safe in the knowledge that if they don’t sell you just return them and don’t lose a hundred.
Tip four: get your family involved. By helping you through the crucial first few months of operation, you may be able to better handle upcoming payroll expenses. In addition, trained family members would be available to intervene during periods of vacation or illness, etc.
Tip Five: Review logs and highlight any underperforming products. You may find that some items outsell others by a ratio of 2 to 1 or more. Swap out slow-selling items with new products and displays for the first few months to test the market. While some items may sell slowly, remember not to go too big with your products and displays as you are trying to promote a “convenience” store and people are looking for all kinds of odds and ends. While some items just aren’t selling enough, they need to be there from an overall perspective. Always test to see what sells well.
Tip Six: Implement proven strategies to help drive sales. For example, place a coupon display right next to the pumps, or place best-selling products in easy-to-reach places, like right next to the front doors. Think about what’s popular with the season, like refreshing drinks, that should be placed right at your front door. Create strategies for some of your best-selling products and earn dividends on your balance sheet.
