[thrixton]

Yep, once we reach a tipping point, we’ll see a snowball effect where low-margin gas stations are forced to close, others have to push their prices up, BEV’s become even more attractive and so on.

With the number of cheap (mostly chinese) BEV’s available now and coming in the pipeline we’re already seeing some very cost competitive propositions.

I think that point is very close, maybe mid-next year if all goes well.

[chrisco255]

Y'all understand that gas stations make almost all their money from snacks right? They make maybe up to 10 cents a gallon on gas. It's always been a low margin business, but since gas can sit in a gas station's below ground tank for months at a time, it's not really a concern for them if people start filling up gas less and start super-charging more. They will simply have less fuel resupplies. That's all.

[jewayne]

It's funny, in another thread I pointed out the convenience stores, arguing that it will incentivize shutting the pumps down sooner rather than later. At a certain point pumps need replaced, and won't do it if they're not going to pay themselves off.

[nicoburns]

A lot of stations will go out of business if they only have say 50% of the sales volume though. Or even 70%.

Places lake motorway service stations where people will supercharge will do just fine, but your local gas station will have to compete will home chargers, parking lot chargers, etc. Not a lot of people will choose to shop at an expensive gas station shop if they don’t have to.

[chrisco255]

People aren't going to stop eating snacks and munchies just because they get an electric car. And I don't know if you've ever been to a Wawa or not but a lot of convenience stores are starting to serve decent quality food as well.

[nicoburns]

No, but there's no reason to get them from a gas station if you're not getting fuel. You can just go to your local convenience store.

[listenallyall]

Low margin =/= unprofitable.

Selling gas is hugely profitable, labor cost for dispensing gas is zero. It's why legacy c-store operators like 7-11 and Wawa now include gas at almost all new locations they build.

[chrisco255]

It's not hugely profitable, its simply a draw for foot traffic to sell more snacks, alcohol, and food. 7-11 and Wawa have been serving gas since as long as I can remember.

Gas stations make about 10 cents per gallon gross profit on the gas pumped. That's before capital equipment depreciation, equipment maintenance, facilities staff, cleaning, etc.

It's profitable, but it produces a minority of the business's profit. The bulk of the profit is from higher margin snacks, drinks, alcohol, cigarettes, lottery, etc.

A switch from gas to electric is not going to affect most convenience stores.

[listenallyall]

> Gas stations make about 10 cents per gallon gross profit

According to 7-11, 39.75 cents per gallon in first half of 2022. Also, while same-store merch sales grew 4.9% y-o-y, gas gallons sold grew 44%. (page 25 of the link)

https://issuu.com/avantimag/docs/avanti_sept_oct_2022_final

> 7-11 and Wawa have been serving gas since as long as I can remember.

You must be young, Wawa was not traditionally a gas station. It opened its first store in 1964 and had over 500 by 1992, but the first with gas was in 1996.

7-11's history and relationship with gas is more complex, but most legacy stores were freestanding store only (no gas).

https://www.burlingtoncountytimes.com/story/business/2014/04...