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How much does it cost to start a cooking gas business in Nigeria? Find out here.
Have you been thinking about starting a cooking gas business and you are not sure how much it costs? Then you are in the right place. In this article, we will be taking a look at how much does it cost to start a cooking gas business in Nigeria?
In Nigeria today, cooking gas is one of the most employed means of cooking and is in high demand. Cooking gas makes cooking a lot more comfortable, easier, and also faster. It is also considered a safer means of cooking when compared to others. The advantages of using cooking gas for cooking are very high compared to its disadvantage. The fact that it has no side effects on the body makes it one of the most sought-after means of cooking.
Have you been thinking about starting a cooking gas business and you are not sure if you should dabble into it? By the end of this article, you will be equipped with all you need to know about starting a cooking gas business including how to pick a good location and how much it costs to start.
How much does it cost to start a cooking gas business in Nigeria?
Starting a cooking gas business exists in two forms. You can either start a wholesale cooking gas business or a retail cooking gas business. Starting a wholesale cooking gas business is quite strenuous and has lots of procedures for you to follow. It also requires huge capital and experience in the field.
However, you can start from retail and proceed to wholesale as time goes on. According to the Department of Petroleum Resources, the land you want to use for your wholesale cooking gas business should be situated at least 15 meters away from any building. This can be quite difficult to get a land of this requirement.
For this article, we will be taking a look at how much it costs to start a retail cooking gas business in Nigeria. How much does it cost to start a cooking gas business in Nigeria?
The costs of starting a wholesale cooking gas business are millions. However, it is more recommended to start a retail cooking gas business as it is much widely patronized. Almost every household in Nigeria uses cooking gas as a means of cooking.
How much does it cost to start a cooking gas business in Nigeria?
The average price of starting a cooking gas business is between ₦250000 to ₦500000 depending on your location. Apart from the fact that cooking gas is cheaper in some areas like the Northeast and North-central compared to the South West and South South, your rent also matters. The price of renting a shop for your cooking gas business is different in every location.
Tips to know when starting a cooking gas business in Nigeria
There are some things you should take note of when starting a cooking gas business in Nigeria. This includes the location you set your business at and how you attract customers to patronize you. How much does it cost to start a cooking gas business in Nigeria?
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Location of your business:
Your location plays a lot of roles in your business. Some people do not think this matters a lot but it does. Before starting a cooking gas business. Conduct market research and find out which area is in much demand for cooking gas. However, also take note of the competitors around that area before you go into the business. If it is a place where there are lots of cooking gas retailers, then you need a unique feature to distinguish your business from the others.
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Every location or area needs a cooking gas refill station. You might also agree with me that cooking gas is quite mysterious when it comes to it suddenly getting finished. The worst thing is that this usually happens in times of high need like probably when cooking or when you are hungry or even late at night. However, if the refill station is located in a far place.
It becomes more of a headache to refill the gas, especially when in the middle of cooking. A cooking gas business should be situated in a residential area or location of high demand. If your business is situated in a residential area, you might have an increase in patronage compared to when you are located in a commercial area.
How much does it cost to start a cooking gas business in Nigeria?
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Quality of your products:
Another tip to know when starting a cooking gas business is the quality of the product you sell. The prices of cooking gas are high these days and a lot of families pay attention to the rate at which the gas finishes. If they find out that yours last longer, then they are bound to patronize you more and even refer some of their friends to patronize you. This is an indirect marketing strategy that would help your business in sales.
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Study about the business:
When starting a business, you must study about the business. Don’t just go into it without prior knowledge. You can take training and also learn about safety measures to protect yourself in case of an accident. Starting a cooking gas business means you will be dealing with gas and you need to be very careful about this. Also, you should learn how to use a fire extinguisher and always check for any gas leakage. This would help you a lot in your business.
How much does it cost to start a cooking gas business in Nigeria?
Summary
The cooking gas business is very profitable so you do not need to worry about the profit. At least selling 12.5 kg of gas might earn you a minimum of ₦500 profit. Imagine selling about 12 of this daily and you earn about ₦6000 per day and at the end of the month, you are left with a profit of about ₦180000.
This is just an example of what you might be earning. You can also incorporate some other businesses like selling cooking utensils and cylinders to increase your profit. These are some side businesses you can incorporate and it is bound to pay off because they are in high demand.
Also, make sure to pay attention to the tips I have highlighted above to succeed in your business. Your location and product quality matter a lot. Also, keep your prices market friendly and give out discounts at intervals to retain your customers. Now you know, How much does it cost to start a cooking gas business in Nigeria?