The profitability of retail/resale of cooking gas business.

[Etini]

From close observation, one can deduce that any commodity that has to do with food/ feeding sells very fast, and one such commodity is cooking gas. The demand for cooking gas is high and because of that, the business of selling gas is very profitable. In this post though, I am going to be focusing on retailing cooking gas. A person can buy about 20kg from the depots and sell it in small quantities, even up to 1/2 kg.

So this is how to start the business. I have to state that this business works better on streets rather than on major roads. This is so because the target market is those people that live on the streets and can't take the stress of carrying their cylinders to the depots to refill their cooking gas. They would rather refill it with someone who is retailing on the streets close to them. You would have to get the regulatory conditions to start this sort of business. You have to work that out with the regulatory bodies. Then you buy a cylinder of about 20kg in size which you would use to buy the gas. Next is a moveable digital scale for taking measurements of gas put in a cylinder. Then you get a site. It could be a small shop or a shed. Then you buy your gas hoses and control. You are set to start your gas retail business.

 

[Ithedicious]

I don't really have much idea about this business , although a lot of people are doing it in our location here but I believe the business may be risky if all the proper measures has not been taken to prevent any accident that might lead to explosion or some other dangerous hazard that could lead to loss of life and property.

As long as it is a business that is being done by people in different area , it indicates that the business may really be a profitable business depending on your demands for the services at that particular location ..

But that's not Withstanding, in most situations there is a possibility that an organisation or a certain rich private individual may set up a standard gas plant filling station. This could make your business to go down as people will be much more interested to buy from them .

 

[Suba]

@Etini it seems that every country has a different gas sales system, In your country, traders can buy gas as much as 20kg or more at the depots. and they (the seller) can split and sell in small quantities of 1/2kg. which means a seller can refill. but in my country the filling and distribution of cooking gas is only carried out by state companies, and cooking gas has been made in tube packaging with sizes of 3kg, 5kg, 12kg, 25 kg and 50kg. In general, households use a 3kg tube size, but many also use a 12kg tube size. When we are going to buy cooking gas at a retailer, for example the size of 3 kg, we only need to bring an empty gas cylinder of the same size. Then we pay according to the price and we will get a gas cylinder that has been fully filled with cooking gas. (so there is a tube swap). To become a cooking gas seller, we have two choices to become a retailer or an agent. To become a retailer we don't need big capital, we only need to have at least 10 empty gas cylinders and we can buy them at agents and of course we sell them at a higher price. Meanwhile, to become an agent we need large capital, warehouse and complete permits. So basically the cooking gas business is very potential and profitable because cooking gas has become a basic need for housewives.