Gas stations, convenience stores feel pinch, too
BURLINGTON, Vt.—Pinched at the pump? Pump owners feel your pain.
Skyrocketing gas prices are spelling hard times for Vermont gas station and convenience store owners, who say they're suffering, too.
"I don't make money on gas," said Tim Troville, owner of Tim's Ethan Allen Mobil, in Burlington. "I probably lose money."
Rising prices -- as of Thursday, the average price for a gallon of gas in Vermont was $3.50, up from $2.83 a year ago -- don't translate into higher profits or more business for gas station owners. Service-station gas revenues depend on the number of gallons sold, not the price, so no matter how high prices go, a store's take remains the same.
For Troville, the main source of income is his repair shop.
In St. Albans, The Bay Store co-owner Kyle Fersing said he makes about 3 cents a gallon on gasoline in a good week. He depends on revenue from the food he sells, but even that comes with a price for him.
"Everybody's crying all the time, including me, and there's nothing we can do about the prices," Fersing said.
Such diversification is helping convenience store owners everywhere cope with gas prices, according to Jeff Lenard, spokesman for the National Association of Convenience Stores.
Many stores are branching out with deli operations, coffee bars and other items with high profit margins.
"Stations either need to evolve or get out. The status quo is really not an option," Lenard said.
On the Run, a large convenience store and gas station just off Interstate 89 in St. Albans, has a large coffee bar, wide aisles, seating and a deli. It also offers Wi-Fi.
"We keep it very clean and we offer a lot of services," said Joe Sibley, store manager.
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Information from: The Burlington Free Press, http://www.burlingtonfreepress.com
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