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I get asked this question often, and I have tried to answer them before as well, but let’s answer it once again in very much details so we can clear up any and all the confusion, let’s discuss how you can figure out how to calculate your fuel profit precisely and accurately.
Welcome to Gas station business 101 podcast, I am Shabbir Hossain, and this is episode 57. This is the show where we discuss how to start, run and grow a gas station business successfully and give you an inside look at many real life case studies so you can follow and be successful in this business.
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Okay now on to the show…
First take a look at the attached daily fuel price notification that we all receive from our jobber/suppliers. This is the price we pay to buy our fuel. Remember it will vary city to city, state to state and country to country. What I pay for a gallon of regular in Alabama may not be the same as someone buying the same brand fuel in NY City. But a couple of things to consider here, if you look at this fuel prices you will notice there is a difference in price between the regular, Mid-grade and premium right?
Well, typically, your mid-grade price should be around 15 cents higher than your regular price, the same way your premium price should be around 50 cents higher than your regular price. So, you need to price your fuel accordingly.
Let me show you how.
Price Regular Mid-Grade Premium
Cost $1.89 $2.04 $2.39
Retail $1.99 $2.39 $2.89
_______________________________
Profit: $.10 $.35 $.50
(Listen to the show for details on how we price our fuel)
Now let’s look at the Excel image of the fuel margin calculation, it will be easier for you to understand this episode if you can see the excel sheet. You can also download this and use it for your business as well.
(Listen to show for full discussion on this)
To download the Fuel Profit Calculator please click below (In Microsoft Excel Format)
http://gasstationbusiness101.com/wp-content/uploads/2017/01/Fuel-Profit-Calculator-Upload.xlsx
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Thank you once again for joining me in this episode; I will see you in the next one.
Cheers!
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