The gas station is not what it used to be. This ubiquitous fixture of the urban landscape has evolved from being a mere filling station into a full service center with other businesses intertwined, catering to the needs of motorists and non-motorists alike.
I recognized the advent of this modern version of the gas station with the Shell Station along the South Luzon Expressway (back when it was still known as the South Superhighway) when it opened its famous Select convenience store. It quickly became a hub for motorists on their way out of town, a meeting point for co-travelers, a quick snack or breakfast place for city traffic survivors, a last-minute stop to assuage the needs of the urban consumer. Pretty soon, tables had to be set up outside the store to accommodate the growing clientele, and the owners realized they had struck a gold mine.
Eventually, other businessmen took the cue: they observed and studied the phenomenon of the modern motorist and capitalized on it, thus creating one of the most profitable real estate ventures in recent years. Business is so good that certain market analyses have shown that some food outlets housed in gas stations rank no. 1 in sales compared to their other branches. These days, gas stations don’t just claim fuel as their main business; but service always is. It seems that real estate around the station generates the most income, areas that house very service-oriented establishments.
What is the secret behind the success? In a business, when your selling price is based on current market value, you must compete by always offering something better. In this case, it is offering convenience. Owners found out how to serve people better by listening to and addressing the needs of their customers.
In my entrepreneurial class at AIM, one of the things I learned was to look for irritants –things that people found bothersome or lacking, find a solution for it and viola!... you have the seed of a business. Back then, customers were probably complaining about the lack of clean restrooms. The smart owner then started offering not just clean restrooms but, eventually, ones that were fully air-conditioned. Outside those clean restrooms, he opened a store or two – and soon, his fortune was made.
Customers looked for gas, clean toilets, food, supplies, maintenance service, or merely a place to stop and rest. Later on, some asked for a more hip place to meet, to hang out, to see and be seen, to enjoy gourmet coffee. They also required ample parking spaces and wide common areas to accommodate their huge SUVs and excited family groups. And so, the service oasis was born. After a while, builders had to make the stops more visually appealing and relaxing to make them the stop-over of choice. Clean lines and maintainability were paramount, lighting and ventilation had to be just right, and landscaping became a must.
Back in college, we were tasked to design a gas station with a restaurant. I found it unusual then, but I did realize the need it addressed. That was probably the first time I saw the importance of acknowledging radical ideas, carefully analyzing their potential, and coming up with practical, sensible solutions. And to hurry up about it, or get beaten to the punch!
Progressive real estate developers think this way. They analyze the needs of their prospective buyers and design their products based on those needs. That way, the buyers just can’t resist it. This brings us to another nugget of learning. Builders must base their designs on needs and not merely on the style of the moment. Remember that Need is the mother of Invention and Innovation. And that’s why gas stations are doing so great!
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