Are convenience stores really profitable?

Question

I'm thinking of buying a particular convenience store. Although it is difficult to say if they are profitable or not. The owner claims that the average daily sales are $500.00 and the profit margin is about 35%, which makes a gross profit of $175 per day. It is hard to tell if I am being deceived. I would appreciate receiving an answer from people who are in the business or used to be in the convenience store business. Thank you in advance.

Answer 1

When you pay 3 dollars for a 2 liter bottles of soda, it has to be.......

Answer 2

Are you willing to work 12 hours a day 7 days a week?  

Can you hire someone to work for you and still have a profit after you pay them?

If you hire someone, will they start taking your merchandise?

Why not work with that person for a week or two and see what happens.

Answer 3

beer and cigarette's

biggest profit makers

I worked in a store for a few summers.

it's a lot of paperwork, you need to make sure the delivery ppl actually deliver what they have on the invoices.

you need to have a video camera system to protect your self and keep your employees honest.

you need insurance if someone slips and falls in your store.

we were in a tourist area and made a lot more than $500 a day. I'm not sure about those figures he's giving you.

can't you spend some time at the store and see what the traffic is without having to count his receipts?

do you sell gasoline as well?

make sure all of your licenses are up to date and all permits are in order.

why is he selling the place?

you can talk to the vendors and find out how much merchandise they have been delivering and how often they come.

do you have a public restroom, they seem to cause a lot of problems and need constant cleaning.

talk to the police and find out if the store or ones near it have been robbed? do you have a silent alarm?