Cooking gas becomes so popular fuel for cooking. Have you ever wondered why is everyone using gas for cooking now?. The answers are pretty simple.
The first thing first, cooking gas is environment-friendly, cook food faster. Best of all cooking gas is very affordable
Cooking gas is also called Liquefied petroleum gas (LPG) or simply “GAS” as everyone calls it. Cooking gas is made up during refining of crude oil or processing of natural gas.
I don’t want to go deeper into this subject of the formation of Cooking gas. Let be the story of another day. The topic at hand is how you start, run and make good money selling cooking gas in Tanzania
The market for this product is growing at faster rates. To save forests, government encourage the use of this product. So even people in rural areas are switching from the use of firewood and charcoal.
This business has attracted a lot of entrepreneurs in Tanzania. And cooking gas retail shops are in every street corner.
I often wonder, how do they make a profit with this intense competition. But the best part is that, as the number of the household switch to this fuel, demand increase and more customers arise.
Start-Up Money
You don’t need all the money in the world to start up cooking gas business in Tanzania. With 1,670,000TZSH you are staring mid-sized cooking gas business in Tanzania
So before we go any further let look at budget for starting this business
Gas cylinders ( 15kg gas and 6 kg. about 20 pieces each size of cylinders) |
TZSH 1,140,000
|
Business license
|
TZSH 80,000
|
Fire certificate
|
TZSH 100,000
|
Hose pipe
|
TZSH 60,000
|
Dry powder fire extinguisher 6kg
|
TZSH 90,000
|
Miscellaneous
|
TZH 200,000
|
Total TZSH 1,670,000
|
|
Read: How-to-start-video-production-business in Tanzania
How is profitable is Cooking Gas Business In Tanzania
The average profit you can make for selling 15kg cylinder is TZSH 7000. You buy at a unit cost of TZSH 47,000 and resell at TZSH 40,000. So if you sell 10 cylinders in a week will make 7000×10= Tzsh70,000. In a month it is possible to make TZSH 280,000
The profit you can make for supplying 6kg cylinder is TZSH 4000. So once you selling 10 cylinders in the week will make you 4,000×10=TZSH 40,000. In a month you will have a profit margin TZSH 160,000
That is just an average profit you can make. But I guarantee you 95% profit if you do a good marketing and you sell your item in a good location.
Tips To Succeed In This Businesss
1:Do home deliveries
Cooking gas is the constant pushing business, so staying back and hoping customers will knock on your door is not a plan. To stand out you should do home deliveries with no extra charges.
Considering you’re starting with limited fund, so delivering cooking gas to the customer’s doorstep without extra costs. might be stressful. But using a cheaper alternative to supply gas can be easily solved the challenge. So considering using bike instead of car
2:Pick good marketing strategies
Cooking gas is the personal contact business. So the word of mouth will really work. Approach a friend and family members and tell about your business. The location is everything. Locate your shop in the area accessible to your target Customers. If you are reliable and you deliver on your promise. Customers will become a friend of your business.
Challenges In s Cooking Business
1:Fire explosion
Cooking gas is flammable in nature. That’s can catch fire easily. To stand out, observe gas leakage and fix a problem quickly. Most importantly get fire extinguisher in your store
2:Price volatility
Cooking gas business is the boom and bust business due to the prices fluctuation in the global cooking gas market. So when the price of cooking gas in the global market drop. It affects the local price as well. This ruins your business as the many customers saves money on buying gas. This will drop your sales and profit as well.
About Husssein Boffu
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