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- $350,000 to sell gas?
The Oil Company is going to pay me $350,000 to sell their gas at this location!
Are they crazy?!? No! They know exactly what they are doing
And if you don’t believe me, here’s the email I received.
Now why does this happen? The Oil companies need to sell their gas and this is how they entice you. They give you a lump sum of cash up front to image your store to their specifications. You, in turn, agree to give up the exclusive right to buy gas from anyone else but them.
It’ a win-win. You get the money you need to make your project work and they get to sell gas.
You may be thinking this is a sweetheart deal. Actually, it’s not. This is from my largest customer and I’m in no position to negotiate. I could probably get another $50k from someone else but I value our relationship.
If I was borrowing money from the bank I could also use these funds towards my down payment. The offers have never been stronger and high volume locations can see close to $1,000,000 paid up front! Think that would super charge your ability to buy gas stations and increase your net worth? This is another reason why I’m high on my industry. The smart money wouldn’t be throwing this around if they didn’t think they’d get their money back. Follow the money, folks; it’s that simple.
Who needs to know this?
Existing operators who are looking to looking for new supply agreements
Developers who need that extra money to make their deals pencil
Buyers who are looking for creative ways to fund their down payment
This ONLY works when their is no existing fuel supply agreement on this designated location.
I also talk about it a little more this week in today’s YouTube video
Until next time it’s pedal to the metal!