Reducing Costs and Increasing Profits in the Gas Station Business: Case study in Nakhon Si Thammarat, Phatthalung, and Songkhla Provinces
Keywords:
Reducing costs, increasing profits, gas stationAbstract
This research has the following objectives: 1) to examine the cost structure of the gas station business in Nakhon Si Thammarat, Phatthalung, and Songkhla provinces, 2) to investigate cost-reduction strategies for the gas station business in Nakhon Si Thammarat, Phatthalung, and Songkhla provinces, and 3) to explore methods for increasing profits in the gas station business in Nakhon Si Thammarat, Phatthalung, and Songkhla provinces. Key informants are gas station operators, executives, or branch managers with a minimum of 5 years of work experience in Nakhon Si Thammarat, Phatthalung, and Songkhla provinces. This choice is due to these provinces having the highest number of gas stations in the southern region. It was found that the number of key informants was saturated at 9 individuals. The research instrument used in this study was semi-structured interviews. Data analysis employed thematic methods and data triangulation. The results of the data analysis revealed that the cost structure of the gas station business encompasses expenses related to fuel, labor, electricity, equipment depreciation, and taxes. To mitigate these costs, strategies such as sales estimation for maintaining adequate inventory, monitoring oil price trends, optimizing employee performance, equipment usage training, overall electricity consumption reduction, and the implementation of solar cell technology were identified. Furthermore, effective tax management system planning played a pivotal role in cost reduction for gas station businesses. Regarding strategies to enhance profits at gas stations, executives should maximize space utilization by introducing additional businesses, such as restaurants or coffee shops. This approach fosters the creation of a community within the gas station, along with the application of service marketing strategies (7P's).
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