Friday, 20 May 2011

‘I make more money selling candy than I do selling gas’

But gas bar owner says he has no regrets about buying Echo Bay business

Seven months ago, Horst Weller decided there was more to life than sitting around his comfortable Laird Township home with his wife, Hildegard, cutting grass and doing odd fix-up jobs for excitement.
So, without telling his wife, and having a two-week window to make a decision, Horst bought what was known as John's Gas Bar on Highway 17 East — renamed New Dawn Fuel — and set about providing work and at least breaking even.
"There were people in the area who could not find work," Horst said in a recent interview.
"I was certainly looking for more exciting things to do than to cut grass in Laird, so I made a quick decision to get into the business."
The outfit employs eight.
"As for breaking even financially, well, let's say we are providing employment, but not making any big bucks," he added.
It's no secret high Ontario gas prices are affecting service station owners. Horst said he sure isn't making money selling vehicle fuel.
"For instance, I buy $5,000 worth of gas as a minimum, and sometimes I find myself making anywhere from three to seven cents per littre of gas sold," he added.
"It depends what I charge in regards to my competition a few hundred yards down the road (The Pit Stop), and whatever money I make on gas sales goes to cover the cost of the attendants that I have pumping the gas. So you can say my gas sales cover my costs for paying employees."
Horst sees some profit in his store, which he continues to remodel as well as add new services.
"No kidding ... I make more money selling candy than I do selling gas, ," Horst said. "The federal and provincial taxes on gas are killing operators. If I can get lucky and buy gas at $1.34 per littre, and sell it at $1.41.5, then I am making about seven and a half cents a litre, and that goes to my workers."
Horst said business is now "slowly improving" as gas customers also purchase lottery tickets, pop, candy, chips and bottled water.,
"It adds up to a profit, not a big one, but one that makes me feel I still made the right decision by getting into this business," he added.
"I am happy. I like what I am doing. I started out to provide some local jobs, and that's what I am doing. And I am not the type of person who sits around crying about people going across to Sault Ste. Marie, Mich., to buy the less expensive gas."
Horst conceded he is losing money.
"Not a lot, mind you ... I have to kick in some of my own money to keep things going," he added.
"But I am now at the point where I am just about breaking even.
"I am happy and my wife is also feeling better, although she sure was not too happy when I went ahead and bought the business without telling her."
Both he and Hildegard have health problems.
Horst "seriously" hurt his back working at Algoma Steel.
"But since we are now in business, I find (Hildegard) looking and feeling better," he added.
"She has lost a lot of weight, which was holding her back. And she is now opening up more to people and getting around more.
"Staff at the store say they notice a big difference in her personality when she comes in now. Yes, I can say buying this business has helped both our family and the town."
Plans still call for putting picnic tables off to the side of the property.
How will the Highway 17 bypass affect gas sales this summer?
Gas attendant Kevin Shaunessey said he finds many people passing through use GPS, which guides them to Highway 17 east, through Garden River.
"For whatever reason, I do know that most of us who live in the area are using the old route of travel, not the four-lane bypass," he added.
"Most of us find it mesmerizing, nothing to look at."
Horst said he is pleased to be making "a living."
"Not a fortune mind you," he added.
"We are enjoying life more since we quit relying on cutting grass in Laird for entertainment.
"We could be still be sitting at our Laird home doing well financially, but not getting much exercise.
"Money is like manure, you have to spread it around to make it work."
Source http://www.saultstar.com/

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