GAS STATION BUSINESS, IS IT GOOD to Franchise?

[marktriton]

Hi

I would like to ask if franchising a gas station is good or just to put up my own station.

DOes anyone here owns a gas station, please share naman ng mga expeirience nyo on how to handle this business and where to find a supplier if you put up your own station.

If in case to franchise im only choosing between the two: SEaoil and Petron. Coz I believe Petron is the number one when in comes to sale and Seaoil has a good quality fuel nowadays that can compete with the big three company.

I also heard that the profit margin for per liter of fuel is only around P1.++. How come a gas station survive with this small profit considering all of the expenses.

Thanks

[tidus1203]

Because of volume. Gasoline station is a low margin high volume type of business. So your only chance of making money is if you get a lot of customers. Location pa din #1 determinant of a successful gas station IMO.

I suggest mag franchise ka na lang. Kasi if gagawa ka ng sarili mong brand baka walang mag pagas sayo kasi syempre mas tiwala mga tao sa kilala na VS sa mga unknown. I am sure you yourself feel that way too... Also by franchising you get access to their supply. Kung gagawa ka ng sarili mo magiging problem mo yung supply ng gas...

[ocanursjr]

Agree with tidus, sabi nga nila location location location...

Try to consider Unioil in your list. Their franchise is relatively cheaper than
other oil company.

I have been looking for good location to set up a Petrol Station. Medyo saturated na ang Metro's. I'm considering outside MM.

[paolorenzo]

Request naman. Setup a Petron station within Ortigas Center. Meron na Shell at Caltex eh. Pero Petron Fleet Card ang company namin. Good luck with your biz venture sir.

[ocanursjr]

* paolorenzo

Still need a lot of queries, studies and more importantly the money.
It's hard to make a decision if you're on your own. Hindi masamang magtanong to those people who are already in this kind of venture.

[marktriton]

* paolorenzo

Still need a lot of queries, studies and more importantly the money.
It's hard to make a decision if you're on your own. Hindi masamang magtanong to those people who are already in this kind of venture.

You have a point ocanursjr, yun din ang iniisip ko na magtanong sa meron ng establish na business na gas station or nag franchise. Sir pag meron ka friend na meron gas station if its ok for him if i will ask some information please PM me. thank you.

[marktriton]

Agree with tidus, sabi nga nila location location location...

Try to consider Unioil in your list. Their franchise is relatively cheaper than
other oil company.

I have been looking for good location to set up a Petrol Station. Medyo saturated na ang Metro's. I'm considering outside MM.

Thank you sa reply , yun mga oil company meron silang existing station na available for franchise, ok din ba yun ganun setup? sa unioil naman parang hindi sila sikat dahil sa product nila unlike seaoil na meron 97 extreme at biodiesel.

Sir nkapag apply kanaba sa Petron?

[rita ramirez]

kasi interesado ako dun sa bulilit station ng petron...gaano kalaki yung area na kailangan..magkano yung money na iniinvest sa petron at sino gagastos sa construction po?
Meron po ba kayong sample ng return of investment , kung ilang taon saka magbreakeven ang expenses at net profit? or kahit forecast profit & loss? Thank you po

[TholitzReloaded]

kasi interesado ako dun sa bulilit station ng petron...gaano kalaki yung area na kailangan..magkano yung money na iniinvest sa petron at sino gagastos sa construction po?
Meron po ba kayong sample ng return of investment , kung ilang taon saka magbreakeven ang expenses at net profit? or kahit forecast profit & loss? Thank you po

I also saw this, just dont know how much is the required capital and the other details.

[jon777]

Bulilit dealer= Bulilit profit

[KERSMcRae]

I also heard that the profit margin for per liter of fuel is only around P1.++. How come a gas station survive with this small profit considering all of the expenses.

P1.++? Tumaas yata. What I heard before was 35cents/liter, but that was few years ago. We have a client somewhere in region 3 city before. The owner was a daughter of former cabinet secretary of infamous president. Maimpluwensya kaya tuloy-tuloy ang construction kahit wala pang ....building permit. Petron din yun.

[fxwizard14]

The gas station business is all about location, volumes and margin. Other services will certainly help the bottom line but gasoline is the engine that drives the ship. I've been in the petroleum business for more years than I want to say, 30 years, there I said it, and have built and owned several brands in the usa Arco ampm now part of BP, chevron, shell, texaco, valero,and now plan on doing a gas station here in Philippines where I now live with my Filippina wife. Many have asked about what margins can be expected here in Philippines. What I have been able to gather so far is the independents Seaoil, Phoenix are telling me to expect .80 to 1.50 per liter. I've been discussing with the big three and have come to the conclusion that we may expect about the same in the area of 1.2 to 1.5 per liter. These numbers would be for someone leasing the site from the oil company with a completed unit already established. If you have the money to build the site you can get a much better deal. My first thought was to buy commercial property. But i quickly discovered that would not be the best use of my money. The best way is to ground lease the property and build the site. Much better for cash flow. The numbers I have come up with are 8 to 15 million pesos depending on location , size and services being offered. This would create a first class site able to handle higher volumes and also allow for other revenue generating incomes such as wash rack, lube, market, and possible co-branded fast food. To get your best margins you will need to go to one of the big three for what is call investment rebates. These rebates can add an additional 1.5 pesos per liter to your margin. As far as which major to go I think Shell is very popular and seems to have excellent per store average, I'm not thrilled with petron since they build them all over and even on top of each other which may be great for Petron but sure isn't going to help a Petron dealer with volumes. My choice however is Caltex because I worked with Chevron USA and they were always fair with me and other dealers. In addition I also notice that both Shell and Caltex maintain their stations much better then Petron which from what I have seen are dirty and in poor condition. Anyway I hope someone gets some information they can use to help them make an informed decision. For those of you that have never worked for yourself there is no better job then working for yourself even if that job works you 18 to 20 hours a day as this business sometimes can.

Good Luck

SJ

PS I currently own an Arco AMPM in California doing 400,000 gallons per month at .12 cents per gallon and market sales of 200,000 USD per month at 35% GPM.

[br733]

PS I currently own an Arco AMPM in California doing 400,000 gallons per month at .12 cents per gallon and market sales of 200,000 USD per month at 35% GPM.

Whereabouts is your station located? Within the city? Suburbs? Or is it along the highway? Do most stations in the US average that much volume?

[fxwizard14]

In answer to your question. My station is on a major fwy interstate 10 just east of Palm Springs California. It is a hard corner location with easy on off access to the freeway. We are located in a heavy hispanic area with many blue collar workers. As far as the question how does my station compare in volume to other. My station would be considered a high volume unit with inside store sales much higher then average my gasoline volume is also on the very high average of stations. In California people commute long distances to their jobs which make California an excellent location to sell fuel. Other states do not have the same advantages as we have and so the volume tend to be far less. I would say that the average volumes in a California gas station would be about 130 to 150K gallons per month with market sales in the 35K to 65K area.

So as in USA location is the most important factor in selecting a site for selling fuel. You will also want to make your very best deal with the oil companies as to rebates and incentives per liter. In my opinion if you are going to invest large pesos then you should expect a decent ROI or you might as well keep your day job.

[br733]

I would say that the average volumes in a California gas station would be about 130 to 150K gallons per month with market sales in the 35K to 65K area.

Ok, thanks for the info. I think 130k to 150k gallons would be right about average for the stations here as well.

I thought 400k gallons is the norm in the US :-)