The ROI of C-Store Growth – How much profit from 1%?

Image of ROI representing the concepts for store manager value. Store manager ROI strategy involves three components. Financial impact, store operations and leadership development drive the return on investment. C-Store Performance – ROI of Growth – How much profit from 1%?

Generating growth provides cash and resources. The ROI of c-store growth is amazing. Driving extra sales puts profit directly to the bottom line. That is why promotions and upselling generate important results. The example below shows how a typical store with inside sales of $85,000 per month at a 27% margin can increase annual bottom line profits by more than $4,100 per store annually.

 

Increasing growth – sales impact
Sales increase% (fuel and inside) 1%
Increase in sales – month $850
Increase gross profit – Inside – month $230
Increase in fuel gallons 775
Increase gross profit – fuel – month $116
Total monthly increase – inside sales & fuel $346
Annual profit increase per store @ 1% growth $4,149

Small Increases Yield Big ROI

There are lots of ways to improve by just 1%. Some things are easy for you to do yourself. Others happen with your partners.  Manufacturers will provide the signs and promotions to pay for incentives that provide a lot more than 1% improvement. Making 1% brings value to your bottom line. Making a series of improvements builds a very profitable store. Making improvements pays. High-growth chains find ways to keep improving so they make growth happen consistently.

Check the math when growth improvements get bigger across multiple stores. It pays to find ways to improve.

Store Count Growth Percentage
1 2 3 4 5
1 $4,149 $8,298 $12,447 $16,596 $20,745
5 $20,745 $41,490 $62,235 $82,980 $103,725
10 $41,490 $82,980 $124,470 $165,960 $207,450
25 $103,725 $207,450 $311,175 $414,900 $518,625

Proven Method of Growth

Read more about the proven way to increase sales, simplify work and make time to grow. Download the white paper and get started –   “Optimize C-Store Performance – The proven way to increase sales, simplify work and make time to grow.”

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