Gas station business. Most affordable..

[jut703]

Daming on-going construction ginagawa sa stretch ng TPLEX, yung iba sobrang haba.
Pero sa tingin ko hindi lang pang gas station ito, but wondering how high is the put up capex?

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On SCTEX, PTT and Seaoil na magkatapat but opposite directions ang tinatayo. On TPLEX, dalawang Petron na magkatapat but opposite sides.

Sir Jut, question lang po. may pinagkaiba ba ang binebenta na gasolina ng isang generic gas station vs branded gas station?

Yup, walang additives yung sa generic. But it's mostly the same base fuel.

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[remzam]

Daming on-going construction ginagawa sa stretch ng TPLEX, yung iba sobrang haba.
Pero sa tingin ko hindi lang pang gas station ito, but wondering how high is the put up capex?

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Di lang naman gas station yun. Like the gas stations along SLEX and NLEX may mga restaurants and convenience stores.

Last time na nag Baguio ako ang haba na ng TPLEX nakakainip kasi wala ka man lang matigilan or jingle break. Napansin ko rin yung mga construction na yun which is good for travellers.

[jut703]

General rule of thumb, if you're building a branded station in the province, you should have a secure volume 80-100 thousand liters per month. Otherwise it won't be a very profitable venture.

If you're going independent/generic, you should get at least 40 KL per month. Much lower volume required to stay afloat because generics have much higher unit margins and lower fixed costs.


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[niky]

General rule of thumb, if you're building a branded station in the province, you should have a secure volume 80-100 thousand liters per month. Otherwise it won't be a very profitable venture.

If you're going independent/generic, you should get at least 40 KL per month. Much lower volume required to stay afloat because generics have much higher unit margins and lower fixed costs.


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So approximately 100-200 customers a day. More if they're PUVs, as those guys only put in a little at a time.

Doable, but only on a major thoroughfare in the province.

[dcph172]

General rule of thumb, if you're building a branded station in the province, you should have a secure volume 80-100 thousand liters per month. Otherwise it won't be a very profitable venture.


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In this scenario, how much net income are we talking abt here? 100k /month? 200k?


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[jut703]

In this scenario, how much net income are we talking abt here? 100k /month? 200k?


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Roughly 100-150k net operating income, depending on how you manage costs. So if you have an investment of 10M it'll take over 5 years to get your ROI.

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[cadayjerry]

In this scenario, how much net income are we talking abt here? 100k /month? 200k?


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if you are generic with 80,000 to 100,000 liters sales per month with at least 40% sales coming from gasoline, your NET income is around 350,000 and up if your price in your area is low. in baguio city and other places with high fuel pump price, your NET income should be more than 500,000.

if you are a petron bulilit and the like with the same sales volume, your net income is less than 100,000.

[cadayjerry]

General rule of thumb, if you're building a branded station in the province, you should have a secure volume 80-100 thousand liters per month. Otherwise it won't be a very profitable venture.

If you're going independent/generic, you should get at least 40 KL per month. Much lower volume required to stay afloat because generics have much higher unit margins and lower fixed costs.


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in my computation, NET income on 80KL volume (40% gasoline and 60% diesel) for branded station like petron bulilit is more or less equivalent to 20KL sales volume of a generic station with the same gaso to diesel sales ratio.

[jut703]

in my computation, NET income on 80KL volume (40% gasoline and 60% diesel) for branded station like petron bulilit is more or less equivalent to 20KL sales volume of a generic station with the same gaso to diesel sales ratio.

Highly dependent on where you are. If you're in an area with high pump prices like Baguio, then yes, there's probably a 4:1 spread between the margins of a branded station and a generic one. At almost 60 pesos per liter for gasoline, of course your margins are over 10 pesos per liter vs the usual 2.50-4.00/L that branded stations give.

But if you go to an area with compressed prices like Bamban or Gerona in Tarlac, the spread is much smaller. In fact there were times when I was practically making negative margins since we were matching pump prices of generics while keeping the assured 4 and 2.50 which were higher than what the generics were getting due to the price war in the area.

10m is too much for a small gasoline station. specially for a petron bulilit where the company will be shouldering almost 50% of the cost.

10M is actually on the low side of a decent branded station (approx 600-1500 sqm) in the province. Have built several branded stations and they range from about 8-15M depending on the size and finish. These of course are built to the company's higher standards - no Beilin dispensers here, all Tatsuno. A current project I'm helping out on inside Metro Manila is already over 25M+; company owned of course.

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[cadayjerry]

Highly dependent on where you are. If you're in an area with high pump prices like Baguio, then yes, there's probably a 4:1 spread between the margins of a branded station and a generic one. At almost 60 pesos per liter for gasoline, of course your margins are over 10 pesos per liter vs the usual 2.50-4.00/L that branded stations give.

bumaba na pump price in baguio city (minus 5 pesos) due to protest initiated by the congressman but still mataas pa rin compared to nearby provinces. as of today, generic stations in baguio city earn 5 to 7 pesos on diesel and 12 to 16 pesos mark up on gasoline. pump price of branded stations are higher by 4 to 5 pesos compared to generics so i supposed the big three are earning too much in baguio city.

my area is one of those with lowest pump price in la union. generic mark up is only 2-3 pesos on diesel and 8 to 9 pesos on gasoline.

may tanong lang ako. 2.5 to 4 pesos mark-up ba talaga bigay branded to all of their franchisee including the bulilit one? ang sabi ng mga petron bulilit stations dito 1.3 pesos on the average mark up nila sa diesel and 1.7 pesos on on the average sa gasoline. ganon daw kaliit so hindi mo sila masisi kung magpapa dumping sila from outside sources. also when i inquire before sa petron on the mark up, hindi rin ganon kalaki bigay nila so i decided to go generic. there are three petron bulilit near my area and i talk to the owners from time to time concerning price movements. of course i also inquire on their capital investments so i have an idea on how much a petron bulilit cost.

[jut703]

bumaba na pump price in baguio city (minus 5 pesos) due to protest initiated by the congressman but still mataas pa rin compared to nearby provinces. as of today, generic stations in baguio city earn 5 to 7 pesos on diesel and 12 to 16 pesos mark up on gasoline. pump price of branded stations are higher by 4 to 5 pesos compared to generics so i supposed the big three are earning too much in baguio city.

my area is one of those with lowest pump price in la union. generic mark up is only 2-3 pesos on diesel and 8 to 9 pesos on gasoline.

may tanong lang ako. 2.5 to 4 pesos mark-up ba talaga bigay branded to all of their franchisee including the bulilit one? ang sabi ng mga petron bulilit stations dito 1.3 pesos on the average mark up nila sa diesel and 1.7 pesos on on the average sa gasoline. ganon daw kaliit so hindi mo sila masisi kung magpapa dumping sila from outside sources. also when i inquire before sa petron on the mark up, hindi rin ganon kalaki bigay nila so i decided to go generic. there are three petron bulilit near my area and i talk to the owners from time to time concerning price movements. of course i also inquire on their capital investments so i have an idea on how much a petron bulilit cost.

If you're based in LU, we can meet up if you wanna know more about the offers of different gasoline stations.

Petron's Bulilit model has low capital outlay but also lower margins. Shell's dealer-owned model makes you spend for everything but also offer higher margins for the first 5 years to make it easier to recoup margins. Company-owned stations are all financed by the parent company and you come in as a operator and fund the working capital (inventory and manpower mostly) - margins are smaller of course but volume for these stations are so much higher.

For generics, you're completely on your own with no price protection for big rollbacks (usually 24-48 hrs for branded) and you also don't get marketing or maintenance support. But if you can get reliable supply with good prices, you can end up being very profitable. Centrum in the north is a prime example.

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[cadayjerry]

10M is actually on the low side of a decent branded station (approx 600-1500 sqm) in the province. Have built several branded stations and they range from about 8-15M depending on the size and finish. These of course are built to the company's higher standards - no Beilin dispensers here, all Tatsuno. A current project I'm helping out on inside Metro Manila is already over 25M+; company owned of course.

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tanong kasi ng proponent ng tread na ito is yong pinakamura and pinakamaliit na gasoline station so i was thinking of the usual maliliit na petron bulilit stations and not those stations that will cost 10 million and above. ang investment lang kasi na alam ko sa petron bulilit is the land preparation and development, fencing, driveway pavement,canopy and the permits and licenses. dispensers, UGTs and signages will be provided by the company including the cost of installation.

anyway, wide range of replies will give a good input for the thread starter to explore his options on the range of capital investments to built a gasoline station that will suit his proposed budget.

thanks bro for sharing your knowledge on the petroleum industry. i'm learning more.

[mokong22]

[QUOTE=jut703;2989032]Highly dependent on where you are.

sir jut affiliate ka ba sa petron?

[n_spinner06]

Hi folks, i would really appreciate your inputs. We have idle farmland approx 2000sqm roadside about 1km from the town proper somewhere in the province. We were aproached by a neighbor who wants to lease the land to put up a gas station. His offer was 10k a month for 10yrs. Why he doesn't want to put it up on his own land beside ours is beyond me. And i think the price is too cheap considering the land might not be useable anymore after 10yrs. How do i properly valuate this? I believe the running rate per sqm is roughly 2k-3k in the area. The land is idle though and doesnt get much use other than the occasional banana harvest for the family's consumption so 10k monthy is better than (almost) nothing. I just dont think 10k monthly is a fair deal and would appreciate inputs on how we could get a better and more equitable deal (if at all). Many thanks!

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[ray_noel]

Hi folks, i would really appreciate your inputs. We have idle farmland approx 2000sqm roadside about 1km from the town proper somewhere in the province. We were aproached by a neighbor who wants to lease the land to put up a gas station. His offer was 10k a month for 10yrs. Why he doesn't want to put it up on his own land beside ours is beyond me. And i think the price is too cheap considering the land might not be useable anymore after 10yrs. How do i properly valuate this? I believe the running rate per sqm is roughly 2k-3k in the area. The land is idle though and doesnt get much use other than the occasional banana harvest for the family's consumption so 10k monthy is better than (almost) nothing. I just dont think 10k monthly is a fair deal and would appreciate inputs on how we could get a better and more equitable deal (if at all). Many thanks!

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How bout get the 10k and request for 20% of their income per month... [emoji16]


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[n_spinner06]

How bout get the 10k and request for 20% of their income per month... [emoji16]


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I thought of profit sharing too. Is 20% reasonable?

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[cadayjerry]

I thought of profit sharing too. Is 20% reasonable?

profit sharing may not be the best option specially if you have no direct control over the operation. annual rental increment may be still the best option.

saan po ba province nyo. can you describe the location.

[MR_BIG18]

Hi folks, i would really appreciate your inputs. We have idle farmland approx 2000sqm roadside about 1km from the town proper somewhere in the province. We were aproached by a neighbor who wants to lease the land to put up a gas station. His offer was 10k a month for 10yrs. Why he doesn't want to put it up on his own land beside ours is beyond me. And i think the price is too cheap considering the land might not be useable anymore after 10yrs. How do i properly valuate this? I believe the running rate per sqm is roughly 2k-3k in the area. The land is idle though and doesnt get much use other than the occasional banana harvest for the family's consumption so 10k monthy is better than (almost) nothing. I just dont think 10k monthly is a fair deal and would appreciate inputs on how we could get a better and more equitable deal (if at all). Many thanks!

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Location?

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[n_spinner06]

Location?

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4th class town in the province along the nautical highway...

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[cadayjerry]

Mga boss.. magkanu pinaka murang cost para mag pa tayo ng gas station? Sample sa amin ang lupa.

kumusta po proposed gasoline station nyo?