historical background: effect of location on the profitability of petrol station
July 20, 2006 5:05pm CST
I wish to understand the effect the location of a petrol filling station has on its profitability
• United States
21 Jul 06
Location plays a huge role in making a petrol station profitable in many ways. One thing is the station has to be in a location where it is easy to access by passing motorists, which means a street where there is a high volume of traffic is most likely going to bring you higher sales than a secluded road. Another situation where location clearly plays an important role in profitability is the station located at a corner of an intersection. Given an eight-way intersection (north-south-east-west plus all directions have left-turn lanes), this station will have customers who could be coming from at least three different directions, so youa re opening it up to more business. On the other hand, if the station is located in the middle of the road, you only get customers coming from two directions at best - actually, one one direction if the middle is blocked by an island. Hope this helps. Are you preparing a marketing report?