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by CamelCaseName 2363 days ago
But at what rate do gasoline customers enter the store now? I suspect that rate is far lower than 5%.

In that case, cars going electric would very positive effect. IIRC, Circle K (a large gas station chain) derives around half of it's profits from concession sales, with the other half from gas.

Additionally, given the higher cost of electric cars, their owners are likely to be wealthier than their ICE driving counterparts. This is an assumption on my part, but I suspect that wealthier people are much less likely to shop at gas stations since items sold their often target poorer demographics. A shift to electric cars would mean that demographics which were already unlikely to enter the store are more likely to make a purchase, while not impacting the lower end clientele.

3 comments

The rate of customers who make additional purchases is closer to 50%. Source: I know a guy who runs a gas station. Profits from additional sales are bigger than from selling gas: they have 3-4% margin selling gas and 30-70% margin selling additional products. Coffee, wiping cloths, chocolate bars, etc.
I used to work in a gas station during high school and did the paper work for the owner each morning.

He was a franchise, so his gas margin was even lower, closer to 1-2%. And yes, most of the profit came from inside sales where the margins were 50%+ or higher.

This has to vary greatly based on location. I almost always go inside gas stations along a freeway trip. I don't know that I've been inside a "local" station in 15 years unless the real purpose of the trip was to grab a Powerball ticket and the gas fill-up was incidental. So maybe five times total.
Much higher than 5%. Just stand outside a Wawa or Racetrac or Sheetz and do a quick observation.
"But at what rate do gasoline customers enter the store now? I suspect that rate is far lower than 5%."

Everywhere I've been from LA to halfway to Vegas usually has a fairly-crowded gas station. WAY more than 50% of people arriving go inside.