Quote:
Originally Posted by no_clue
the most important thing about c-stores is the location. You cant advertise with a c-store so location is key to attracting customers.
The second is inventory turnover, if you are not selling items fast, it's a death sentence to your business as most inventory you own are perishable. Around 70% of inventory you can purchase at a costco, including tobacco so that is a plus. Purchasing $90 000 of tobacco onto your amex card = 1 free flight right there. Getting decent suppliers is important for the remaining 30%. I find that Pepsi/Coca Cola are very nice, with generous rebates and free stuff. Same goes for Frito-lay and Old Dutch, they will buy back at a discounted rate for expired goods. SYSCO was nice but they jacked up the prices alot recently. IMO I think it is too hard to develop a C-store around Vancouver/DT, too much competition, If you sold gasoline as well, maybe. Be advised that you need at least $1 million to invest in anything in Vancouver.
As for deducting expenses, meals/entertainment/clothes/laptop dont EVER deduct, they are pointless to a C-store owner and more towards realtors, accountants etc. my
got audited once and although we passed they frowned on our suburban lease, saying that it is too luxurious, they only let it go after we told them that it is better than a silverado + pick up cover. If my dad listened to my whining and got a Escalade ESV, we would've got fined $20-30 000?
Oh and watch out for wal-mart, if they move into the neighbourhood = good-bye c-store!
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For us Frito-lay and Old Dutch is a guaranteed sale same goes for coke pesi and Quality sandwiches. If it expires they will credit us what ever they sold it to us for. If you get something at a good price fast turn around is not that important but we do sell a lot of things you won't find at a 7-11. Best example time foil roasting trays for turkeys. Buy them at the $ store and they sit in the back of the store for 5 or 6 months. Christmas day comes around and theirs always some one that needs one hes willing to pay $6 for 1.
Walmart is also not a death blow because if someone needs 2l of pop he's not going to wast 30 min driving to Walmart, find parking and then wait in line just to save a buck when he could be in and out of a C-store in 5 min.
Your parents also need to find a better accountant.My brother is an accountant and use to be the head of the tax department at KPMG in Vancouver we right off lots of stuff including a Mercedes ML 500 that he bought new for work.