How to Start Profitable Cooking Gas Retail Shop

How to Start Profitable Cooking Gas Retail Shop

Do you know you can compete with cooking gas plants around you by setting up a cooking gas retail shop? DPR (The Directorate of Petroleum Resources), the government agency responsible for approving plants and shops for cooking gas retail, has released a new guideline to help you tap into the business even as a small investor.

It’s cheaper to start. This cooking gas retail shop business or gas reseller can cost you less than a million naira, but I will advise you to invest more if you can afford more. And you can easily raise the capital without going to beg friends and relations who might not be willing to help you. Also, you can start like this and grow big into a cooking gas plant.

And you can make it so big and cutting off the big gas plants in your area. Remember that two things control cooking gas retail. One is closeness to consumer. And the other is gas price per KG.

If you have read my articles on how to Setup cooking gas plant, you will discover it require over 20 million or more to start one. But for cooking gas retail shop you don’t need anything close to that to startup immediately.

The basic things you will need to start cooking gas reselling include:
1. DPR approval.
2. Big Shop
3. Gas Bottles
4. Racks
5. Cylinders
6. Other gas accessories
7. Fire extinguishers

Introduction to Cooking Gas Retail Business

The two major cooking gas retail businesses are the gas plants and the road side gas reseller. Both are doing the same business as cooking gas retail. The difference is that the owners of gas plants do it bigger and have capacity to stock large volume of gas content. Also, they invest more money as big time gas resellers.

A road-side cooking gas retail chop in the other hand, can startup small, rent a cheap shop at the corner and sell to consumers using big gas bottles. However, the Directorate of Petroleum Resources (DPR), the body regulating this business will soon phase off the road side cooking gas retailers and they are being replaced with a new style of road side cooking gas vendors, which the organization described as Gas Resellers.

This business gives you the opportunity to setup cooking gas retail shop close to the target customers. The demand for cooking gas is shifting from the big consumers with 12.5kg cylinders to large group of small consumers with small bottles of 3kg to 6kg.

This kind of consumers are your target customers. They mostly don’t have cars to transport the cylinder to gas plants. They also buy small KGs. So closeness is fine because cooking gas can finish at unexpected times and they will need to refill immediately to continue cooking. Here is where the gas resellers can tap from this billion naira cooking gas retail business.

How Cooking Gas Retail Shop Works

I have already listed some of the basic requirements to setup this cooking gas reseller shop anywhere in Nigeria. However, there are easier and better way to go about it, both with government approval and to locate close to the consumers.

I will explain all the process and how to make your cooking gas retail shop profitable. Although, my advise here will encourage starting big as well but it’s doesn’t mean you can’t start little if you can’t afford the capital I’m advocating for you to raise to get started.

Cooking Gas Reseller Shop Business Plan

First you will need to Package a Cooking Gas Reseller Shop Business Plan. I know most Nigerians don’t understand the value of a business plan. The general belief is that it’s required if you want to get a bank loan.

That is half truth. Even though you need a business plan to apply for a bank loan, have you wondered why the banks request for the business plan from you? That reason should also be your reason for having a business plan.

The two highest concern when starting a business is the startup capital and the success of the business. And the banks are saying if you want us to give you money, which is the startup capital, show us proof of the viability of the business.

So, by putting together a business plan what you are doing is proving the viability of the business before you invest your money. Who is the most important person to prove the viability of this business than yourself. If you are convinced that it’s viable how can you be motivated to start.

And don’t just think if a business is profitable for someone that means it will be profitable for you as well. You have to be sure it profitable for you in the location you are targeting. As you know, cooking gas retail shop is a location based business.

You need to know the factors that would make a cooking gas reseller shop profitable for you. And if you follow the recommendation of the cooking gas retail business plan you will get the right result.

I recommend that you don’t skip it. Package a good cooking gas reseller shop business plan. But if you can’t Package it yourself, use a consultant to do it. And it can cost 25k to get a cooking gas retail business plan done for you by a gas consultant.

Key Considerations For Cooking Gas Retail Shop

Your cooking gas reseller shop business plan should address important areas of the business. The viability of any business is not only depended on the financial calculations. There are other factors to consider.

One is location assessment report. While you may not have a specified location when writing your business plan, an idea of a suitable location for your cooking gas retail shop should be part of the plan.

Another thing is marketing. In a competitive environment you must learn to differentiate your cooking gas retail shop from the others. What kind of marketing strategies should you adopt? If you can’t win in your market your business is bound to fail.

You may not be able to stop a competitor from opening a cooking gas reseller shop near to you. But you can stop your customers from patronizing your competitor through your marketing strategy.

Cooking Gas Retail Shop Location

Getting a shop. The shop is important because it will determine your target customers. Your target customers determines your location. As I have mentioned, your cooking gas retail shop should target customers with 3kg to 6kg cylinders.

These kind of customers would patronize you. Let me clarify it. You may not be able to compete in price with cooking gas plants around you, but you can save your customers the time and transport fee to and fro to a gas plant.

Majority of customers who buy cooking gas within this kg limit usually buy cooking gas on emergency. That’s what you are tapping into. And in the future 70 percent of cooking gas consumers will be within the 3kg and 6kg customers.

DPR Approvals For Cooking Gas Reseller Store

If you want to do this business you must meet DPR requirements. One of the reasons for DPR regulations is to insure compliance to safety standards. As you know cooking gas is highly inflammable. That’s equally the reason cooking gas retail shops have come under DPR surveillance.

That means you can no longer setup cooking gas retail shop in just any location. Certain conditions must be met for a location to qualify and be used as a cooking gas retail store. Read This Story By Punch Newspaper.

Action Points to Start Cooking Gas Retail Store

I’m going to give you the processes to follow, but you might be required to get the full STEP BY STEP GUIDE TO SETUP A COOKING GAS RESELLER SHOP ANYWHERE IN NIGERIA. This step by step guide cost just 10k.

You will get a full and comprehensive details on this business, the cost outline, with full cooking gas business plan and the viability analysis. Plus marketing strategies to implement for different types of locations.

Step One: Location Assessment Report

This report is important when looking for a location for your cooking gas retail store. Even though you can find good location virtually everywhere their are large crowd of residents. But due to DPR regulation you cannot setup just about anywhere.

You must follow prescribed guidelines to chose your store location. And according to DPR regulation, you can’t setup in a residential building. This makes it challenging to be able to pick the right location to start your cooking gas retail business.

Step Two: Get Your Store Approval

Once you have your location sorted out according to DPR requirements, the next thing is to get approval from DPR for your shop. You can visit any DPR office in your state. They will give you the requirements and approval fees.

If you don’t know their address and location, we have them all listed in the STEP BY STEP GUIDE TO SETUP A COOKING GAS RESELLER SHOP ANYWHERE IN NIGERIA.. It contains list of addresses of all DPR offices nationwide.

You can get this step by step startup guide for just 10k. Also include in the guide is a cooking gas retail shop business plan. That will save you 25k. And this offer is only available for the first 100 people to order. Please note that once we have sold to 100 people, you will have to pay extra 25k if you want the business plan included.

Step Three: Setup Your Shop

If your approval scales through, it’s time to setup your shop for business. The six major things you need to setup your cooking gas retail shop includes:

1. Gas bottles (popularly known as cylinders)
2. Iron racks to store the bottles
3. Fire extinguishers for safety
4. Fire resistant Hand gloves
5. Iron bucket filled with sand
6. Gas accessories like hose, burners, regulators, weighing scales and dispenser.

Conclusion

You can start this business without much ado. The first step would be to get the business plan. I’m offering a free business plan worth 25k if you are among the first 100 people to buy the STEP BY STEP GUIDE TO SETUP A COOKING GAS RESELLER SHOP ANYWHERE IN NIGERIA for just 10k. After the first 100, you will pay 35k if you want the manual with the business plan included.

And you must know that DPR has also reduced the competitiveness of this business to partial monopoly. That means there are very limited locations where you can setup a cooking gas retail shop. The restriction is good for business. But only those who act fast may get the available locations now.

If you have interest in this business and want to know more or need help on starting, you can reach us on these contacts through WhatsApp/Call/SMS: 08139006120 or 07087770518 or nedu@myblog.com.ng

About Chinedu David

Chinedu David is a business consultant, trainer, marketer and strategist. My services include: conducting business feasibility study, packaging business plan, new and existing product market insertion, design, build and managing hotels and cooking Gas plants anywhere in Nigeria. PS: You can reach me through any of these contacts ( For speaking engagements both local and international) : Call/Text/WhatsApp: 08139006120, 07087770518 or email: nedu@myblog.com.ng

Drop your comment and I will respond with tips to help you.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: