Grow Your Business

How to Start a Successful Gas Product Dealership

Gas product dealership

If you are looking for something to do this year, I will recommend becoming a gas product dealer agent. This is not that kind of 9 am to 5 pm collar jobs that pay you peanuts monthly. Gas Product Dealership is a lucrative investment.

This one is less stressful and can also give you a good monthly income that is regular and enough to make you a good breadwinner for your family.

Even if you don’t know anything about gas or it’s products and hasn’t also done business before, I can show you a very easy to follow steps to start this business even from the comfort of your home.

And you can start with just N20,000 now – the startup price might go up in the future but if you take my advice and start now that is the amount I advise you to start with as a beginner.

Gas Business Guide For Beginners:

Before I even go further, let me first explain to you what you will be learning from this article so you can make up your mind to read also or merely stop here now and use your time for other things.

Because this is a gas business guide for beginners. I will be showing just the products to start with – but I recommend you start with only one and as you grow with that one you can add other gas products as well.

So, I will be showing you the Gas Product Dealership you can start with and why. I will also explain to you how to choose your supplier or suppliers. You will learn how a supplier can affect your business and what supplier you should deal with and why. I will also show you how to sell gas products as a dealer agent.

This is the most important aspect of this business. This will help you start selling and making money immediately even before you invest your N20,000. You might as well sell your first products before you also buy your first stock.

Once you have customers who will buy from you or you are so sure of it will sell in your city, you can now invest more money. I will show you how to finance it, what it’s for, who to send the money to and how much you can make from your N20,000 investment.

Profitable Gas Products:

Now, let’s start with finding profitable gas products you can deal on. Let me also explain your job as a gas product dealer agent. It will help you know the products you can sell better in your city.

As a gas product dealer agent, you are a representative for gas products manufacturer or importer in your city. Since they cannot be in every town, your job is to bring gas products, especially new ones closer to your market.

Most gas shop owners buy from other retailers like themselves without knowing it. That makes their prices higher. Now, you can be that go between agent.

If you are an agent to RHINO, for instance, you have all their support in your city for all their products as well. I will make a list of some of the products.

Items In Gas Product Dealership:

  1. Gas regulator
  2. Gas cylinder
  3. Camp gas burner
  4. Gas valve
  5. Gas Hose
  6. Gas Leak indicator

Let me explain what each product is for and the demand for it and why you should deal with it. The gas regulator is in colossal order now. Many families are changing to gas.

You know this thing when your neighbour’s husband buy the gas cooker for his wife, and your wife won’t let you rest until you buy for her too.

Gas Cooker:

Many families are buying gas cooker because of this. Don’t underestimate the power of a woman when she wants something her neighbour has in her house. When you purchase a gas cooker, you must buy a gas cylinder with the regulator.

Gas Burner:

It’s the same with the demand for camp gas burner – in case you don’t know this camp gas burner is those small gas cylinder that has the burner attached directly to the bottle. They have become very popular now, especially among university students.

Gas Valve And Hose:

While the gas valve and hose are also in demand on their own. Though they are not much of a hot product because valves come together with camp burners most time but the hose is in regular order but with meagre-profit margin. That’s why you shouldn’t do hose as a single product dealership.

Rhino Gas Regulator:

But here is my recommended gas product you can start with right now as a beginner. Even though camp gas burners are the huge market, I will not advise you to start with it as a beginner.

The reason is simple, it’s everywhere, and the profit margin is too lean. You don’t want to start with a keenly competitive product in a business that you are just learning.

What you need is a product with a reasonable profit margin, that is not everywhere in the market but has huge demand even in a small town. So, I will recommend just the right product for you.

Rhino Gas Brand:

It’s called RHINO Gas regulator with leak dictator and gauge. This is not the regular gas regulator. This one has a gauge to help monitor gas usage, so you will know when your gas is about to finish. The regulator also save customers gas, because it’s low pressure regulator.

And it has leak dictator and can stop leakages of gas. It’s a product every gas user would want to buy. In fact, some people who already have the old regulator will buy this one to replace it. I will also show you how to get this product.

However, I will advice you get samples of the regulator. Here is why and how to get the samples. You need to see the product for yourself and even test it.

I recommend that you use one in your house to see how it works and so that you can boldly tell your customers how Best it works. It’s SONCAP approved.

Dealership Plan:

For N150,000 you will before a retailer in your location. If you want to be a distributor in your state, the startup amount is N1,500,000. You will have an exclusive dealership in your state. However, Lagos, Abuja and Port Harcourt doesn’t have exclusive arrangement.

After that, you will not be able to get this small measure at this wholesale price. So, I advise you to use this opportunity to kickstart your gas product business. The retail price for this type of RHINO GAS REGULATOR is between N3,000 to N4,500. Some even sell as high as N5,000. Even that old regular ones sell as much as N2,500. If you do all the maths, you can see how much on retail you can make from this product. That is why I recommend this gas regulator to you.

But here is the main secret to selling it faster and more profitable. In your town, you can find at least two to five gas plants depending on your city, and many gas stores that are selling gas products.

  1. Make a list of all of them.
  2. Go to them one after the other
  3. Ask them how much they are selling their gas regulators.

Don’t tell them you want to sell to them. See the different ones they have and their prices. If possible snap them pictures, note the prices and collect their name or business name, shop address and phone contact. They will give you willingly.

Try to reach at least 50 shops. After you have done this, you now have 50 potential outlets where you can sell your gas product. Make sure too that you have the samples ready if you are going to do this because you will need it to kickstart the sales.

Dealership Potential:

Now that you have 50 potential shops that you can supply your gas regulator, choose a day to start calling them and introducing the regulator to them. I recommend you call them between Tuesday’s and Wednesday’s. Call between 11am to 2pm.

However, you must have decided how much you are going to sell to them. Note that these shops retail and they probably have somewhere they are buying regulators from. Also, they have a price they are hiring too.

So, your secret here is that you know how much they are selling. So, set your wholesale price not more that N200 margin from your cost price, because these shops are going to retail and you wouldn’t want them to reject it.

If the 50 shops that will buy a retail quantity of 10 pieces that is 500 pieces. If you calculate it by your N500 profit margin that’s N250,000 profit. Remember that these shops will now be buying from you all the time. Let’s assume it’s monthly, then you now have a regular N250,000 monthly income.

Chose Your Supplier:

However, if you now meet a challenge like not having the money to supply all that much order, that is where choosing the right supplier is essential. A good supplier is a partner that works together with you.

You help him sell his product to your market, and he should be able to help you as well. Don’t start asking for credit or pay on delivery. You won’t get that. Here is what I recommend that you request from your supplier.

If you have like 10 shops that want products at the same time, but you don’t have the money to order that quantity, you can contact your supplier and explain the situation to him. They might request that they call the shops themselves to be sure they are will to buy.

If you are working with a trusted supplier that is good but a lousy supplier can take those details from you and cut you off – and might even offer them the same price he is selling to you. The only way to guide against this is to have money to buy your stock or convince your buyers to give you their money upfront if they can trust you, or deal only from a trusted supplier.

Rhino Gas Company:

I want to recommend that you deal directly with the company that owns RHINO GAS REGULATORS. The company name is Rhino Industrial & Trading Company Limited. The are the manufacturers of the RHINO GAS REGULATOR.

They can also be trusted with contacts of your customers to help you meet colossal supply order if you don’t have money to order that big. They will request the connection of your customers. Call them on your behalf to confirm both their respective order, quantity and payment time.

Then, they will send a marketer to your city with the orders, while both of you will do the supply and collect money. They will take their cost and raise your profit. Also, you can ask the customers to pay directly into the company account, and you will arrange with RHINO to send the order.

Chinedu David
Chinedu David is a business consultant with experience in oil & gas, hospitality, IT & telecom, consumer products, business strategy, marketing and distribution. He was the telecom editor for SuccessDigest for over a decade. And founded Mystore, one of the indigenous online marketplace in 2013. Drop a comment below and he will respond to your query. He can also be reached via email: or Call/Text/WhatsApp: 07087770518
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