We were recently asked to perform an assessment for a Tribally-owned convenience store (C-store) in the Midwest. Before we toured the facility and observed its operations, however, we had done our homework. As part of our process, the Tribe had sent us the C-store’s financials for review before our scheduled evaluation on the ground.
Because Blue Stone has completed over 100 Tribally-owned C-store evaluations, we are able to collect the financial data from several locations and then break that data down by categories and assign it to a specific region. The first thing we do when assessing a new location is to take the individual station’s financial data and compare it to the average numbers of other Tribally-owned C-stores located within their region. Next, we also compare numbers to industry averages from their non-Tribal C-store competitors, as well, so our clients can have a clear picture of their market position from both tribal and mainstream competitors.
Using these benchmarks, we can identify potential red flags even before we begin our physical assessment. In the example above, we know that even though their Total Revenues were higher than the average, their Gross Profit Margins were way too low. By using benchmarking, we can better analyze how to turn this situation around to make the C-store more profitable.
Additionally, being on site also allows us to find other potential areas where we are able to help, including missed opportunities to quickly add more revenues―like building a better food program, for example, or ways to increase diesel customer traffic.
Capitalizing on these opportunities begins with benchmarking and we’re happy to report that the tribe is moving forward with implementing our recommended changes. We are excited to see the forecasted net profitability―which is projected at $1.4 million annual growth.
Call us today at 949-476-8828 or email us at firstname.lastname@example.org to schedule a benchmarking initiative so that you can make your C-stores more profitable!