How To Start Cooking Gas Retail Business

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Cooking Gas

There are many reasons making cooking gas retail business a most profitable one. Over the years kerosene has been the most used source of fire ranging between 60-70% of energy consumption in Nigeria. Whereas Liquefied Petroleum Gas (LPG) was about 25%. Other sources of energy such as firewood/charcoal, sawdust, and electric cooker account for 15%.

These days because of the national awareness that is going on LPG usage is on the rise on a daily basis. It will continue this way until every household stops using other means of energy for cooking. Do you now see why putting money in cooking gas business an ideal thing?.

Also we are living in a time were sophistication is the in thing. There is a way people who are using other energy sources view those using cooking gas. It was a common thought that it is only wealthy people who used gas. Funnily I used to think this way meanwhile I was spending about #4,000 every month on kerosene while my neighbour was spending #2,500. Yet she was appearing classic while I was in the group of old school.

There is a huge market opportunity in cooking gas refilling business. Lagos state consumes about 35% of the LPG; the highest consumers in the country so far while other states account for 65% usage. Annual consumption of cooking gas is put at 300 million KG. Most filling station now sale gas while smart individuals are busy clearing land for cooking gas retail business. I am living in a place that is developing to become a town. You can say outskirt of town I was very surprise a guy that already has a stand in town came over our area to open not just one stand but two. So what are you waiting for, you can join the business now that it is still very hot.

By the time the business is saturated you would have made a name and also gain ground. But I’m wondering whether it will ever be over saturated judging from filling station business. That’s just by the way….

WHY YOU SHOULD START COOKING GAS RETAIL BUSINESS

The business involves buying large quantities of cooking gas; store them in tanks and sell to persons for cooking purposes. Apart from the fact that there is good profit in the business; there are many other reasons for it. One of which is to curb or reduce the problem of green house effect. We have witnessed many environmental hazards because of the distortion of our ecosystem. Tree felling and bush burning will be checkmate.

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Cooking gas business now have good patronage. What is pushing people into the use of gas is the rising cost of kerosene and scarcity. Whereas gas is always readily available at a less amount when compared with kerosene. Cylinders are now in smaller sizes making it possible for many low-income earners to afford.

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Your kitchen and environment will look new because it doesn’t bring out soot like charcoal and kerosene.

WHAT YOU NEED TO START A COOKING GAS RETAILING BUSINESS

GET TRAINED

Before starting this business it is important to get training in other to know the con and pro of cooking gas retail business. The things to learn are:

HOW TO MEASURE THE GAS

Cooking gas is measured in litres, kilogram or tonnes. 1kg is equal to 1.75 litres while metric tonne is equal to 1,750 litres

HOW TO REFILL CUSTOMERS CYLINDER

Gas can be refilled into another cylinder in two ways depending on the type of filling system;

AUTOMATIC FILLING SYSTEM

Insert the nozzle into the cylinder and press the exact amount of quantity whether in kg or litres into the cylinder. Because it is automatic when it gets to the actual quantity that is programmed to disperse it will stop.

PNEUMATIC DISPENSING SYSTEM

The cylinder is placed on a digital scale which is adjusted to its zero limit. After pressing the quantity that is equivalent to the amount required you stop dispersing.

HOW TO HANDLE THE GAS CYLINDER (PRECAUTIONS)

  • Make sure you place the gas cylinder in a vertical direction except it is otherwise stated by the manufacturers.
  • Be sure it is well positioned so that it doesn’t topple.
  • Always make sure the cylinder valves are tightly closed in other to avoid leakage.
  • Also make sure you always protect the valve with a valve cap to prevent damage whenever the cylinder is dropped.
  • When loading or unloading the cylinder don’t drag or roll it over because it can result in damage to the cylinder. Place them in a well ventilated room with enough air.
  • The cylinder should not be placed on bare ground but on a pelleted wood.
  • Don’t allow the cylinders to have contact with each other.
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GOOD LOCATION

It is always very important to set up a business where the population of consumers is high. Therefore set your cooking gas retail business in the centre of attraction. Most of the sellers converge in town which is not wrong. But why increase the number of sellers in a particular place while some places are left with non. It will shock you to know that it is not only the rich or people in town that make use of cooking gas. Low income earners now use it in good numbers.

Before the guy I made reference to opened close to us we were all buying in town You can imagine the stress, inconveniences and money spent on transportation.

THEY PLACES TO SET UP A COOKING GAS RETAIL STANDS ARE:

More than 70% of the people living in an estate make use of cooking gas. It will be an opportunity to established one in such areas. Other places are Government reserved areas (GRA), communities where high income earners are located and Urban centres.

CAPITAL FOR STARTING A COOKING GAS RETAIL BUSINESS

Well with #200,000 you can start the business in small-scale. This may include a 12.5kg used cylinder and 10 different cylinders for a refill. Others are a new 12.5kg, 6kg, 5kg, 3kg; 1 bundle of hose, burner, regulator etc . Cooking gas comes in different shape, colour and sizes. The sizes ranges from 3kg, 5kg, 6kg, 12.5kg, 25kg and 50kg.

For a large-scale cooking gas retail business you will need millions of Naira maybe about 2 or more.

But this is outside the space to use. You either buy or rent. Lets say you can attach a container to a shop in a commercial area where it will not pose a challenge. Capital is very important because it is the foundation for starting a business. You can get a soft loan for the business. This is the first time I’m actually encouraging the sourcing of loan for a business. This is because within 6 months you should be able to return the loan if you are not yet expanding.

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PLACE OF PURCHASE

Research to find out where to be buying the gas. There are many major cooking gas stations. Before now there were only two known dealers; NAVGAS which is the biggest and NIPCO both are in Apapa Lagos. In a cooking gas retail business where to purchase gas from is very important and the source of such gas.

The station should be closer and the price fair. Every dealer has their different prices.

PROFITABILITY

If you make #50 for a litre of gas you bought assuming you sold up to 100litres. That will be 50×100 which is equal to #5,000 . Making this amount for just a day is not bad. But it could be more depending on your location.

You can also make money from the sell of cylinder to old and new customers. This will give you additional income.

MARKETABILITY

Print flyers for your cooking gas retail business and distribute it to every house or most houses in your location. If you cannot place sign post at least line the cylinders outside so that the people passing will be aware of what you are offering..

Advertise your business online. Reduce the price ao that people will see reasons why they shouldn’t go to filling stations that are selling them to buy. They are your major competitors.

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