Cousin Edgar is always thinking of the next business idea. This time, he plans t
ID: 1215243 • Letter: C
Question
Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying two gas stations. He reckons American consumers have come to accept the high gasoline prices, and estimates world prices for gasoline will increase even further due to increasing high demand from India and China. Besides, Cousin Edgar thinks he will make a good profit on the sale of convenience items at each station. But before buying the gas stations, he decides to ask for your advice since you are taking this course in Business Economics.
Explanation / Answer
Gasoline has become one of the most essential product in the today's life. Be it the by-products of gasoline or the gasoline itself, they have become so essential that no matter what the price is we need to buy them. Take for instance the gasoline by-product that is used for cooking or the crude oils that are used for various other purposes. So it is not that the American consumers have come to accept the high gasoling prices, but they will have to accept since there are no other options for them. Hence Cousin Edgar's decision of investing in gasoling in one of the perfect ideas for investment.
In America the convenience stores are picking up on a good scale since it enables people to do multitasking. One end their car will get a good wash whereas parallely they will also be able to complete their grocery purchase. This will reduce their time and consumers will definitely be one the look out for gasoline stations that has multiple options. Business is all about taking the right decisions at the right time with the right strategies. Hence Cousin Edgar has chosen the right business idea. What he now has to do is to implement the right marketing strategy to attract consumers and choose the right place of gasolins stations. If he settles on the right place and opens up a convenience store paralley he is sure to make good profits and expand his business.