Allensburg's Food and Gas

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Convenience Store Gas Station Business Plan

Strategy and Implementation Summary

Allensburg's Food and Gas will focus on becoming a routine stop for the commuter traffic on Highway 310, not just for those people who need gas, but for those who are looking for a healthy, tasty snack on their drive, or need to pick up some small grocery item on their way home. Allensburg's Food and Gas will aim to be more than a gas station to its customers, it will be a friendly place to stop for tired commuters.

5.1 Competitive Edge

The competitive edge for Allensburg's Food and Gas is the following:

  • Location: Allensburg's Food and Gas is located on Highway 310. The closest competitor is three miles into the town of Allensburg.
  • Quality Deli and Organic Produce: While buying gas, commuters will now be able to pick up lunch, or buy something to take home. The commuter will soon regard Allensburg's Food and Gas as an invaluable time saver in their day.

5.2 Sales Strategy

Allensburg's Food and Gas will keep its gas prices competitive with other stations in a fifty mile radius of the station in order to attract commuters. Customers that purchase more than $10 worth of gas will be given 15% coupon on purchases in the store during the first month of operation, to encourage purchases and to introduce them to the concept of buying quality organic foods at the gas station.

5.2.1 Sales Forecast

In order to maintain competitive gas prices, the cost of gas to the consumer will never exceed 15% of wholesale cost. Allensburg's Food and Gas will focus on increasing food sales in order to meet total sales forecast goals.

The following is the sales forecast for three years.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Gasoline $623,000 $660,000 $700,000
Food, Drinks, and Produce $185,000 $198,000 $210,000
Total Sales $808,000 $858,000 $910,000
Direct Cost of Sales Year 1 Year 2 Year 3
Gasoline $544,000 $570,000 $582,000
Food, Drinks, and Produce $37,200 $41,000 $44,500
Subtotal Direct Cost of Sales $581,200 $611,000 $626,500