User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


61° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

Share your Photos, Videos, and Stories on uShare! Click here to get started.

KELOLAND.com | Sioux Falls News & Weather, South Dakota News & Weather, Minnesota and Iowa News

[0] My Saved Articles
Find local businesses
on the KELO Pages!

 

High Fuel Prices Hurt Gas Station Owners

April 5, 2008, 10:00 PM by Kelli Grant

High Fuel Prices Hurt Gas Station Owners
High gas prices may make you may cringe when you drive by a gas station. But you should know the station’s owner is feeling the pain as well. Profits for fuel sales are very low and those in the business are turning to other services to keep afloat. Just selling gasoline could shut off some station's pumps. 

You won't find many places like Dave’s Service & Repair. It's Lennox's local mom and pop quick stop.
And Dave Severson is the friendly face you see every day. 

“I don't have credit card at the pump. You can't pay at the pump. I have customers that pull up here, they fill up. They wave, I write it down, I bill them at the end of the month and away they go. They never come into the station,” Severson said. 

It's the locals that come to Dave's for more than just a fill up. 

“The oil changes, tires, towing, alignment.” 

Severson says if he didn't provide a full service station his doors would most likely be closed. 

“If I didn't offer all the rest, I wouldn't make it on the gas,” Severson said. 

That's because he'll pay 24 to 25 thousand dollars for a load of fuel. If the price drops the very next day he's out of money. Even selling it a nickel lower than what he paid could mean losing hundreds of dollars in profit. 

“Sometimes you're making a nickel. Sometimes you're making 25 cents. Sometimes you’re losing 30 cents,” Severson said.

Severson says the problem is as the price of gas goes up and down, the bigger gas stations will continue to compete. He says that could drive his mom and pop station right out of town. 

“I don't set the price, I gotta follow what the big guy does or I don’t sell gas,” Severson said.

So the trick is getting customers to come inside for a pop or a new tire. And Severson says even though gas brings in very little profit his customers count on him for the full service. 

The National Association of Convenience Stores estimates that gasoline accounts for 70% of a typical station's revenues but only 30% of its profits.

Previous Story

Next Story




 
Find Local Businesses on KELO Pages!

You may also like

Body Of Missing Realtor Found At Arrowhead Park

10/18/2014 3:22 PM

The body of a missing Sioux Falls realtor has been found.

Full Story
SFPD Search For Missing Realtor

10/18/2014 11:45 AM

The Sioux Falls Police Department is asking for the public’s help in finding a missing woman.

Full Story
UPDATE: Two People Dead In SF Crash

10/17/2014 9:52 PM

Two people are dead after a two vehicle crash on Friday night in Sioux Falls.

Full Story
Body Of Pam Kneip Found After Search

10/18/2014 10:00 PM

Hundreds of volunteers gathered by an entrance at Arrowhead Park Saturday as police conducted a search for a missing woman.  The friends, family ...

Full Story | Watch
Police Release Names In Deadly Sioux Falls Crash

10/18/2014 8:19 PM

Police say two Sioux Falls men died in a crash Friday evening in the western part of the city.

Full Story


Events