How a Cooking Gas Retailer can survive and remain Profitable in 2023

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• Author: Muyiwa Ige(LPG Stakeholder and Consultant)

With the proliferation of LPG Refilling plants, Skid-Mounted LPG Plants and Retail outlets in Nigeria today,  a cooking gas retailer must definitely be at the top of their game in order not to be swept away into oblivion by the ‘current’ of the present fierce competition in the LPG Industry.

These are some of the strategies a gas retailer needs to adopt to continue to thrive and remain competitive in Nigeria’s cooking gas industry.

 Accurate Gas Refill

You must ensure you refill your customers’ cylinders accurately at all times. When the cooking gas of your customers last up to their expectations, they will be happy and will continue to patronize your outlet.

They will even recommend you to others, leading to even more patronage and business growth for you.

 Competitive Pricing

It is very important that your cooking gas refill rates are not higher than your competitors’. 

If it is possible, maintain a pricing system that is lower than other cooking gas retailers close to you, in order to encourage more people to patronize you.

Gas Availability

It is absolutely imperative for you to have cooking gas available at your outlet at all times, if you want to be taken seriously in the gas business.

A customer that comes to your outlet on more than one occasion, only to discover you have run out of gas will be disappointed and may never come back.

Worse still, the same customer might discourage your other customers by telling them you rarely have gas in your outlet; resulting in the loss of revenue for you and threatening your survival in the business.

Having an adequate number of 50kg gas cylinders and putting in place a good stock management system that will guarantee round-the-clock gas availability at your outlet is non-negotiable to have stock on a constant basis.

Good Customer Relations

Some customers may display nasty attitudes, especially when dissatisfied with their previous gas refills at your outlet but you need to be calm and polite in addressing their grievances, inspite of their provocatory statements.

If you are harsh to your customers, you will not retain them and they will switch their allegiance to your competitors.

You can do well by always welcoming your customers to your outlet with a warm smile and appreciating their patronage after every gas refill or related service.

Install a Gas Pump

At a time when there are many gas stations using powerful pumps to refill gas cylinders at a rapid rate, a gas retailer that is still using the manual system of decanting gas that takes a lot of time should not expect much patronage.

It is expedient for you as a gas retailer to purchase a good quality pump that will enable you to dispense gas to your customers promptly and not keep them waiting.

Having a stand-by power generator to power the gas pump when public power is interrupted is equally important.

Sale of Gas Cylinders and Accessories

The sale of gas cylinders, cookers, burners, caps, valves, rubber, controls, regulators, lighters and other related gas accessories, will increase your revenue.

Also, you may win over new gas customers who initially came to your outlet solely to purchase gas cylinders or other appliances.

Source for Cheap Gas

You need to locate and patronize the cooking gas refilling plant that sells gas at the lowest rate, closest to your outlet.

Your ability to get gas at a cheaper rate to your retail outlet than your competitors gives you the advantage of being able to sell at a lower price to your customers.

The lower the price of gas you sell, the more the patronage you get; thereby increasing your turn-over.

Rendering other Gas-related services

Services such as the replacement of gas cylinder valves, painting corroded cylinders and the repair/refurbishing of gas cookers, will undoubtedly reinforce the confidence of your customers in your ability as a competent gas retailer.

These services, which other gas retailers around you may not be offering, have the potency of drawing new gas customers to your retail outlet and boosting your revenue profile.