Gas Station Partnership

[The Wiz]

We are considering a POS interface with some gas stations in close proximity to our wash locations. I want to study the potential profits. I saw the post on washes per gallons sold at the station but I want to understand how the typical partnerships work in terms of sharing profits from the POS sales with the gas station? Do they take a percentage or a fixed amount from the sale?

 

[washme1]

I know there is an operator in my area who has an arrangement with a nearby convenience store. That C store gets paid $1 by the operator for each wash code they sell. The operator bills the C store for all of the codes sold (whether or not they are used). The C store can either discount the wash or keep the fee as profit. I think they only offer the top wash.

 

[r&r wash]

Wiz,

We have a similar agreement with an adjacent C store. We give them $1 for every wash they sell. I do not know how many gallons they sell so I can't help you on washes per gallon.

 

[PEI]

We offer our partners 5% of all sales through their pumps and C-Store. This encourages them to push our carwashes since the more they sell the more they make.

Another thing that we have done in the past is to offer a 5 cent per gallon discount on all gas purchases that include a carwash. This costs us on average between 50 cent and 60 cent per car, yet drives both gas sales and carwash sales.

 

[Baywash]

We partner with Murphy USA and they get 15% of gross sells. We also discount the washes by $1. Almost all of the purchases are done with credit card, so this saves me around 5% as Murphy takes care of that. So I look at it as costing me only 10% plus the discount. All in all with the extra volume they send my way, I am happy with the arrangment.