There are many who are looking to buy their own filling or petrol station due to the several perks that it comes with. However, this very concept is surrounded by some biased misconceptions that run rampant on the minds of existing as well as potential petrol station sellers. Such perceptions can potentially dissuade anyone who is looking to get into the industry. Therefore we have come up with a convenient myth buster article that might help you fulfil your dream of buying a petrol or filling station.
Money Printing Business:
Most of the average person is sure to be unaware that the petrol station or truck stop owners do not make incremental profits as the prices of fuel increase. The majority of the retailer’s profit goes towards handling fees, insurance fees and many other unforeseen costs. Therefore as an alternative to increasing profits, most of them come equipped with convenience stores. This is a great source of alternative income for the retail fuel sector. Profits from these sources are mainly dependent on the location and the petrol station valuation.
It is very easy to start:
Oil companies tend to highly critical when they are choosing the right person to run the petrol or filling station. This is because most of the time owners seem to bow out of the position due to the immense pressure that it comes with. This means as an owner you will have to be well versed with all the aspects that are required to run the business successfully.
It is very easy to buy a petrol station:
As we mentioned in the previous parts of the article, getting to start with your petrol station can be a difficult process and requires you to qualify for a lot of skills and requirements. The franchising oil company will have the final say on who qualifies. Therefore, not only finding a petrol station for sale with property will help you get started, but you will also have to fulfil all the other criteria as well.
I can Build a Petrol Station wherever I Want:
The petroleum industry is a highly regulated one and therefore obtaining rights to build one can be challenging for beginners. There are three sets of approvals and licences that are needed to build one, put forward by SAPRA (South African Petroleum Retailers Association).
- Land use rights
- environmental authorisation
- retail and site licenses
Other factors that you might also need to consider as well:
- Proximity to nearest competition.
- How many litres are you looking to sell?
- How will it affect existing structures on the plot as well as the surrounding areas
As an owner of petrol or filling station, you will need to go through various hoops and expenses to keep your business running. Doing tasks such as bank recons, fuel recons, running the office etc a lot of responsibility lies on your shoulder. Make sure you are up for what lies ahead before you consider investing.