Author Topic: What you need to get a Tim Horton's  (Read 1124 times)

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Offline BC_cheque

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Re: What you need to get a Tim Horton's
« Reply #225 on: April 06, 2018, 04:52:50 pm »
I thought gas stations were all about the extra's these days as the margin on gas was fairly low (~5-6% average, low during price war and possibly negative for some credit card sales). We no longer have the days of the service station with a small office/retail that gave away maps and maybe sold you a pack of gum, with that dirty toilet on the back with an outside door that you would really have to be desperate to use. I have heard that while the gas sales account for over 70% of the revenue, they represent less than 30% of the profits. The margin on the bag of chips, loaf of bread, or quart of milk are very high.

That would be interesting to know more about, do you remember where you read it? 

I just googled to see what I found and not digging very deep I came across this:

Quote
Jason Parent, vice-president of consulting for Kent, says the average margin on gasoline has risen to eight or nine cents per litre in the past two years from the 20-year norm of four to six cents, leaving more profits at the pump for the owners.
http://www.metronews.ca/news/calgary/2017/05/16/national-gas-station-count-growing-again-thanks-to-stronger-profit-margins.html

I bet the margins on chips and pop is way higher but I'm guessing cigarettes and lotto tickets make up a bigger portion of that 70% (profit).  That's where Timmy's also helps.