Hi, I am a practicing CPA with several years experience as a chain operator, both as the COO and CFO. It is typical for a seller to sell the pumps, tanks and lines, yet retain the land to lease. It is also typical for the owner to retain ownership of the pumps, tanks and lines along with the land. In other words, as long as the sale pencils, its probably okay. However deal points I would watch:
a. When you acquire the pumps, tanks and lines please recognize that they have minimal value, as no one wants to buy them (EPA issues, can't move them, etc.)
b. Make sure your purchase documents do not assume any of the prior owner(s) EPA liability.
c. Talk to your CPA about depreciation of the entire purchase. Depreciation is key consideration, and C-stores have favorable (rapid) depreciation.
d. Don't buy the site based on "if I do this" look how much better the economics are. Buy it based on the economics of the seller. Seller economics should be verified to tax returns, etc. Not a hidden set of books.
e. Always think about the buyer after you. Someday you (or your estate) will need to sell the site. Make sure it will increase in value.
I probably mentioned more than you wanted, but C-stores can be good or bad, and I don't like to see anyone harmed. Write back if you wish. Good Luck!

Hello,

First off this site is great! I am a convenience store owner who has been in business for a few years and I absolutely love it. I have one store with another on the way and can't think of anything I would rather be doing. Overall our business is successful and our gross profit is good, but I have a small problem:

We live in a highly tourist driven area (in 2008 about six million tourists a year) in the months of april thru september. As you can imagine the economy has affected that number since 2008. We are making ends meet but have seen a steady decline in sales over the last two years in everything except fuel. It is frustrating to know that the people are right there and yet are not buying inside. As a result of low sales we have had to start running a few shifts a week to cut our labor back so going door to door and hunting new business among our locals is tough. As we get closer to winter, what little tourist business we have is going to drop off and we are back to serving a small local community (about 5,000 people and there are two other corporate c-stores in our are). I am a bad promoter I will admit but we have run some specials on beer (a big portion of our business especially among our locals) with realitively low response. As I stated earlier our gross profit is stable so running some low priced items are not going to hurt us. I just need to know how you do it to get the word out and in what areas, especailly in relation to getting them from the pumps inside. Last year was pretty brutal so any advice is greatly appreciated. I don't have a ton of capital so investing in a lot of new inventory or equipment is kind of out. I do however have a lot of murchandise to run so specials on. I sure appreciate any suggestions and I wish you all the best in your businesses.

Thank you!

Hi, my wife and I are considering buying a c-store/gas station but have some concerns about one part of the deal. The seller is selling the business including pumps, tanks, and other equipment, but is not selling the property that he also owns. Is it typical for a gas station owner that is leasing a property to own all station related equipment including the tanks, or are the tanks typically owned by the property owner?

Thank you,
Scott

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