Gas station business. Most affordable..

**jut703** · February 29th, 2016 04:12 PM

Originally Posted by dcph172

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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**n_spinner06** · July 23rd, 2018 12:03 AM

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** · July 23rd, 2018 02:30 AM

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

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**n_spinner06** · July 23rd, 2018 05:57 AM

Originally Posted by ray_noel

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** · July 28th, 2018 01:42 AM

Originally Posted by dishcom

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

kumusta po proposed gasoline station nyo?

**cadayjerry** · July 28th, 2018 01:47 AM

Originally Posted by n_spinner06

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.

**cadayjerry** · July 28th, 2018 02:29 AM

Originally Posted by dishcom

Mga magkanu sir sa petron? Ang puhunan na need sa pinaka maliit na posible. Tangalin na natin ang cost sa lupa.. target po sana naman yung pinaka murang gas na pwding e binta. Kasi may shell narin sa amin na malapit..

pag petron bulilit. you will invest around 2.5 million to 5 million depende sa luwang and design na gusto mo. all in na dyan including the cash bond, permits, driveway/canopy construction and initial stock. the company will provide the fuel pumps, underground tanks and signages including the cost of installation.

pag generic naman with the same size and design as the petron bulilit, mas malaki investment mo which will be around 4 million to 6 million. lahat kasi ng capital investment galing sayo. and with that amount, your UGTs and pumps are brand new. avoid second hand pumps. sakit lang sa ulo.

sa income side naman, your income pag generic ka is around 8 times your income pag nag franchise ka. ganon kalaki ang agwat. pag nag franchise ka, 1.00 to 1.20 pesos lang income mo per liter sa diesel and around 1.20 to 1.50 pesos naman sa gasolina. pag generic ka, around 3 to 6 pesos per liter income mo for diesel and around 8 to 14 pesos naman income mo per liter sa gasolina. your income per liter depend on the prevailing pump price sa area mo.

if you go generic, you must make your gasoline station is presentable, more beautiful than those branded bulilit station, maluwang, with clean CR, air and water provision, trained gasoline attendant and lower pump price. fore sure, you will be competitive with those branded gasoline station specially in the provinces where lower pump price matters. dont worry about the supply. ang dami supplier na pwede mag deliver sayo. also, make sure na mga bago yong delivery tankers yong supplier mo. also you need to know the source of your supplier.

**cadayjerry** · July 28th, 2018 02:33 AM

Originally Posted by jut703

Just be ready with about 10M for a small station. This will include the cost of pumps, underground tanks, civil works, and your initial working capital.

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.

**cadayjerry** · July 28th, 2018 02:56 AM

Originally Posted by dcph172

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** · July 28th, 2018 03:22 AM

Originally Posted by 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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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.