Increase Convenience Store Profits
Planning to sell your convenience store in the near future? Focus now on how you can increase convenience store profits by following the following 8 tips to grow your bottom line.
There is a convenience store near every corner of the country. They have everything you need, such as hot dog grills, slushy machines and coffee dispensers. They are usually open all day and often have a 24-hour opening. You can refuel your vehicle and get snacks, drinks, and refreshments while you’re on your way to your workplace or holiday destination.
Convenience stores, also known as “C-stores”, ability to succeed depends on their profit margin on gas sales in addition to in-store sales. These businesses must be careful in choosing the right equipment and supplies, as well as smart planning and prudent operating procedures, so that they don’t lose their small profitability percentage.
For more on increasing profits, check out our blog and video on liquor store profits.
We have 8 tips to help you create a more profitable convenience store.
1. Increase Convenience Store Profits: Plan carefully
Convenience shops require significant investment as well as a lot of time for opening and running. To manage this complex process, it is important to have a plan and a budget.
Plan Your Convenience Store Business
You must plan carefully and thoroughly before you start thinking about renovating, selling/buying a store or opening one. Your business plan should include the following essential considerations based on your goals and objectives:
Location: Consider the advantages and disadvantages of your area, such as busy streets, business districts, or entrances to malls.
Customer Base: The amount of people and cars that pass by the store in front.
Competitor: A competitor selling the same product or service in a neighboring area.
Products and Services to be Sold: Depending on competitors’ inventory, deciding what products or services to sell.
Suppliers: Stock your convenience store with the right supplies and equipment
Staff: Find the right staff with an affordable salary.
Monthly Costs: The collection of data on rent, taxes and personnel salaries.
2. Increase Convenience Store Profits: Make Your Store Appealing
Your first goal should be to attract customers to your convenience store by creating a modern design, an illuminated interior, an catching sign, and an organized layout.
Travelers and commuters typically spend around 3-4 minutes in a convenience shop, which includes gas refueling. After bringing your customer to your store, you will only have a short time to show the products to them and make the sale. A well-organized floorplan allows customers to easily see what they need and where they can find it.
Glass door merchandisers can be used in convenience stores to display beverages, beers, water bottles and other refreshments. These supplies are great for keeping drinks and beverages cold during summer months. Offering cold beverages to customers is a key to increasing sales, considering that convenience stores can experience a 17% increase in summer sales.
You can also add an ice cream freezer, or a ice cream maker to your store’s entrance to entice customers to take along a sweet snack on their journey. All these display freezers and merchandisers take up valuable space in your shop. Countertop glass door freezers and refrigerators can make the most of your available space. This will reduce your costs and provide a beautiful display area for your customers.
You may want to hire professional help with layout planning and design. This will allow you to organize your merchandisers and supplies for your business.
3. Increase Convenience Store Profits: Enrich Your Inventory
A large stock of products and services is another key factor to increase profit in convenience stores. Despite the importance of motor fuel sales, only 23% of convenience store sales are from food service. To increase your sales and profitability, make sure you have the right supplies for your convenience store.
Convenience stores that serve commuters, for example, can increase their customer base with fresh juice every day using commercial juicers. The commercial kitchen equipment allows customers to see fresh fruits and attract them. This equipment also makes fresh juice quickly, which is a popular choice among office workers.
Pre-made sandwiches can be made on sandwich and salad prep tables. The chilled ingredients and vegetables will retain their texture and flavor. To keep your winter sales up, you can also offer toasts with a commercial toaster. These are great options for commuters and travelers to grab snacks while they travel to their destination or catch a meeting.
These products may also include pizza, deli and pastry products. These products must be delicious so you need to store them in the right places. Pizza slices should be stored in pizza warmers for their taste and warmth, while dessert and deli foods need to be refrigerated to ensure their best quality.
These food products are not the only ones that matter. Coffee brewers, coffee machines and espresso machines are also important for increasing sales at convenience stores. The most popular drink in the country is coffee. Customers will be drawn to convenience stores that offer freshly brewed, delicious, high-quality coffee.
4. Increase Convenience Store Profits: Show Your Customers Your Inventory
It is important to have all the necessary supplies and equipment in stock, as customers are likely to spend less time in convenience stores. This will increase your profits and help you sell more. It is possible to save money by buying the best products with less energy consumption and the right features.
Food Warmers
These supplies are great for displaying food and keeping the heat of soups or other meals warm so they can be displayed in a stylish way. These convenience store supplies can be used to increase sales by providing hot food merchandisers such as nacho warmers and popcorn poppers.
Hot Dog Steamers and/or Grills
In many films, the movie star stops at a convenience store to buy a hot dog so he can continue his dangerous pursuit. It would be great if you could also serve hot dogs to your customers, and keep them in a safe place like a hot dog steamer.
Beverage dispensers
To make customers return to your store, you should have the required convenience store supplies. The right equipment will provide a consistent taste and quick service to ensure customer satisfaction. The coffee machines will offer fresh, stale coffee. However, the beverages machines and water dispensers can quickly provide a quick cup of water, juice, or a coke to passersby.
5. Increase Convenience Store Profits: Eye Level Is The Buy Level
To increase your sales, keep high-profitable products at the eye-level. Arrange your layout so customers can easily walk around the area and view all your most-profitable products at eye-level.
Convenience shops make a lot of money from impulse sales. To increase customers’ immediate purchasing, place your most frequently used products, such as confectionery, candy, gums, or candies, near your serving counter. Countertop merchandisers can be used to display beer, water or other beverages, as well as food display warmers, to allow customers to make last-minute purchase.
6. Increase Convenience Store Profits: Keep Costs Low
Convenience stores must minimize costs and increase sales to grow their business. Follow a rigid and consistent cost planning and monitoring process by following these tips:
- Only purchase essential convenience store supplies
- Favor energy-saving equipment,
- Reduce costs with versatile and smart equipment to save space, energy and personnel.
- Prevent equipment breakdowns through consistence maintenance
- Look for vendors that offer excellent customer service.
- Commercial refrigerators, merchandisers and refrigerated display case cases can help prevent product waste.
7. Increase Convenience Store Profits: Cleaning
All food-service businesses must make cleaning a priority as it is essential to avoid cross-contamination and spread of microbes. Customers are very concerned about shopping in a very clean store. All convenience stores should have a sanitized store with a regular cleaning schedule.
Start by cleaning the floor, the bathroom, counter, serving areas, glass doors, and racks. To keep your store clean, make sure you have all the necessary cleaning products and tools. Mops and sanitizers can be used to clean the floor. Be particularly attentive to the busier areas of the store and any spaces that have food, condiments and beverage dispensers.
Travelers often stop at convenience stores that have gas stations to use the restrooms. To attract more customers to your convenience shop, keep the toilets clean. To maintain hygiene, it is recommended that you set up hand dryers and offer full soap dispensers and paper towel dispensers.
8. Increase Convenience Store Profits: Add or Increase Digital Marketing
Digital marketing is a great way to drive sales and repeat customers. Market online, through social media and through various promotions.
Make sure your website is up to date with consistent branding with your store. Make sure it’s a responsive website as many customers will find your store via mobile phone searches.
Make great use of Google Business Profile so that your store ranks better in a map search and so that your store ranks in the top 3 Google Map Pack.
When You’re Ready, Mission Peak Brokers Can Help You Sell Your Convenience Store
Now that you have the plan to increase convenience store profits, you will not only be rewarded with great profits from your gross annual sales but also when you sell your C-store. Increasing profits increases your convenience store’s list price. The more profitable the business, the more desirable and sellable.
As California’s #1 Liquor/Convenience Store Brokers, our Liquor Store Brokers can help you strategize, value and prepare your convenience store for a successful sale.
Contact us for further consultation. We offer complimentary business valuations. We look forward to working with you on selling your business.
