When you undertake a gas station feasibility study, the most powerful factor that will affect the outcome is the proposed location for the gas station. There are several reasons choosing the right location can make or break your chances of long-term success.

Physical/Geographic Features

The geography and physical features of the proposed location can heavily influence success. For example, although a location might seem ideal because of high traffic volume, it may have features that make it inaccessible to motorists. Features like difficulties turning into the gas station, dangerous intersections, and difficult or limited parking will make it less likely any single motorist will use your gas station. Isolated locations can make for poor outcomes, although almost everyone who passes by the location may stop for gas since there may be few other options in the area.


Although a location might be ideal in terms of its physical features, the number of nearby competitors can make the gas station less likely to succeed. If there are several gas stations nearby, it will be harder to attract customers unless you offer something more to customers, such as food or the lowest prices on gas. The type of competitors you have nearby will also affect outcomes. If your gas station is small and independently owned, you will face an uphill battle when your competitors are big-box or club stores with gas pumps or major chain gas stations/convenience stores. These locations frequently have the edge because of brand recognition even if they do not always offer the best prices.


The demographics of your proposed location can also affect feasibility. Demographics can entail personal characteristics about the people within the vicinity of the location or what businesses are nearby. For example, a location nearby a shipyard or military installation would have profound benefits over a location near a playground or elementary school. Some locations may seem like a good idea on the surface, but you need to dig more to find out if the proposed location makes sense. Placing a gas station near a college campus sounds like a good idea, but if the campus has a low rate of commuter students, then gas sales might be poor, but sales of food or other items might negate lower gas sales.

When considering the feasibility of a gas station, the location you choose will have the most profound impact on success. Studying all aspects of a particular location before reaching a decision will give you the best chance at a positive outcome. Conduct a gas station feasibility study to learn more.