How One Texas C-store Turned Its Fuel Sales Around

PILOT POINT, Texas — After 17 years with a major brand and in the face of declining sales due to competition, Joshua Kim switched his gas station to the VP Racing Fuels banner in June 2016. Since then, the Pilot Point location has doubled its gasoline sales from 30-35,000 gallons to 70,000 gallons per month.

"And that's during the winter, so I expect even higher volumes next summer," Kim said.

The gas station owner evaluated the pros and cons of other major brands and unbranded options before making the change. Despite some initial concerns, VP has proved to have sufficient brand recognition to turn things around.

"New customers seem to be attracted to the VP brand due to a perceived higher quality, with many reporting cleaner fuel and better gas mileage," Kim said. "It also has dramatically increased my sales of premium gas. After averaging 30-50 gallons of premium per day, we've increased to 150 gallons daily."

The location is seeing higher fuel volume, more profit on gasoline sales and a 33 percent increase in in-store sales, Kim added.

"VP's off-road race fuel blends attract customers we wouldn't otherwise get and VP Madditives are selling really well. I think the additives underscore the perception of quality in customers' minds, where the VP brand is viewed as an authority on fuel technology," Kim added. "I couldn't be happier with my decision to brand with VP Racing Fuels."

San Antonio-based VP Racing Fuels' retail branding program enables gas stations and convenience stores to reduce their credit card processing expenses and lower their cost of supply, as well as increase revenues with new profit centers built on VP-branded products, all while gaining more control over their business, according to the company.