LPG Retail: How to start Cooking Gas refill Business in Nigeria

The use of liquefied petroleum gas is becoming very important in Nigeria especially now that the government is canvassing for the use of Autogas. Cooking gas before now was restricted to just the kitchen and to other mega industrial purposes. Now, there is an outrageous need for it.

In this whole setting, there is a money-making opportunity and you can’t afford to leave it on the table. If you have ever thought of starting a retail business at all, you should give Gas refilling a chance today at least, at a small scale. This is not just because everyone cooks, but also because next generation cars are designed to use it.

There is money in Gas dustribution business currently in Nigeria, you too can benefit from it just with enterprise. All that is required is to learn the business ropes, write a business plan for it, research and study, secure funds, register with relevant bodies and organizations to obtain needed licenses like the department of petroleum resources, site your business in a strategic location, then market and continue to sell your products.

What you need to start a cooking gas retail business

As a retailer dealing on sale of cooking gas in a given location, you stand a chance of reaching more customers since your services are closer to end consumers, making you the right option for them when it has to do with closeness to your Gas market. In essence, you profitably serve as a connecting point between a major gas plant and it’s buyers.

Before you talk about starting the business, you have to go for training to at least acquire the basic gas saftey precautions. Some of the things to learn include but not limited to how to detect and fix leakages in gas cylinders, how to weigh cylinders of different sizes using a scale, how to properly refill gas cylinders like 3kg, 12.5kg, 6kg, 13kg 5kg, 50kg & 25kg and how to charge for prices of any custom quantity that customers may request for.

The safety guidelines you must have obtained during your training days will aid you in choosing a safe location for your business, since gas can cause environmental hazards, launching in a cool dry place with high demand is paramount. You will get to know the two major means of refilling gas in Nigeria which are the Automatic and Pneumatic ways. Your training will aid you in the proper measurements of gases which may be in ton, kilograms or litres which is 1.75 to a kg. Cooking Gas bought for resale are stored in tanks and sold at smaller quantities to buyers who store it in Cylinders.

As a way of marketing and to increase repeating customers, you can also sell other gas cylinder accessories so as to keep buyers coming. Selling items like burners, hose, regulators, cooking pot stands, Cylinders stands and others may do the job.

How much capital is needed for a cooking gas refill business

The cost involvement in a typical cooking gas wholesale business run in millions but we are here too talk about how much for retail purposes. To startup one, the financial commitments may include monies needed to get your new business registered, renting a shop, buying working materials like Tanks, Cylinders, Scale, transfer Hose and any other needed tool. A major amount of money will be needed to buy the product itself (gas) and transport it direct to where your shop is located. In any case, the average cost of starting a cooking gas refilling business at a retail rate is between ₦250,000 NGN to ₦350,000 NGN.

How to make money selling cooking gas

Some people might get discouraged at the thought of venturing into this gas refilling business because someone they know was not making it big time. Although it may be discouraging, but people are smiling to the bank serving as cooking gas Suppliers.

The things to do differently is in siting your brick and mortar business closer to consumers and then, steposte up your mode of advertisement. The truth is that whether you know it or not, most Nigerians (if not all) in the Urban areas of states use LPG to cook. That number is increasing and you too can cash in this time. All you need to do is to first conduct the market study (research) to determine when LPG is in a high demand, who or what class of people request for it and and where they are highly concentrated.

The information you gather above will aid you in choosing a profitable location, a place that will give you the needed market with steady demand for gas and any of it’s accessories. When siting in such a mouthwatering location, care should be taken so as to make sure that you don’t site very close to a competitor who is commanding a large base of loyal customers. In fact, it is better to site in virgin location with a reasonable amount of demand per day and use advertisement to makeup for any gap created therein.

Advertising never ends and keeps happening. There are some customers who are not yet loyal to any cooking gas distributor already. It is your duty to reach out to them with tempting offers like a first time purchase discounts or offer to come pickup their cylinders, refill it and send it back to them. The working class would fall for this and you will be smiling to the bank.

By the way, there are various ways of marketing your products and they may include, promoting your business on Radio stations and TVs, publishing on popular and location based blogs online and reaching out to your fans on social media. You may never know who may come across these efforts since the online space in particular has far reaching abilities of transforming your firm.

Conclusion: Successful Gas business step by step setup

• Obtain the business Training
• Research and study
• write a business plan for it
• Secure funds
• Register with relevant bodies and organizations
• Site your business in a strategic location
• Market and promote your business.
• Give discounts where and when necessary.
• Sell cooking utensils and Cylinder accessories in the same shop

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That’s all it takes. If you like this post, please share it with you friends and family on social media below. They will thank you for it.

Originally posted 2022-11-20 02:26:46.