+ How do I know it is a good business or investment?
The retail filling station is a highly capital intensive business.
The return on investment depends on the individual site but can be calculated between 30 - 40 times the Nett profit.
+ How do I go about buying a petrol station?
When investing in a petrol station the following steps must be taken in chronological order:
1. Select the site and enter into an afgreement of sale with the owner/franchisee. The contract must contain three essential suspensive conditions (a) due dilligence, (b) approval of finance and (c) acceptance by oil company as new dealer/franchisee.
2. Have you accountant do the due dilligence to establish the profitability of the business. If the return is acceptable, proceed with the purchase.
3. Prepare your business plan. If you need assistance, we can help. (Click on business plan tab on our home page)
4. Apply for finance (if required.)
5. When finance is approved, apply to oil company for approval.
6. The process may take up to three month to complete.
+ Is there any other expenses apart from the purchase price of the site?
Over and above the purchase price which is due and payable on the effective date, allowance must be made for the following:
1. Preperation of business plan - cost approx R12 000.00
2. Fuel supply guarantee - approximately R350,000 - R500,000 depending on the oil company.
3. Rental deposit
4. Municipal deposits
5. Oil Company training (compulsory) approx R32,000
6. Oil company Isometric test (compulsory) - R4,000
7. Working Capital. Depending on the volumes the site pumps, this can range from R 1 million to R 2 million . Remember fuel is a cash business.
8. It would be prudent to allow for miscellaneous expenses - R25,000
+ Which oil company is the best to be associated with?
All the oil companies operate in a very strict set of rules. There is no one better than the others. Since you will be dealing with people, it is essential that a very good working relationship be established between yourself and the oil company business advisor.
Essentally you need to look at the specific site and decide if you want to be involved in the site and secondly the oil company.
+ Why do dealers sell a profitable site?
The average dealer will operate the site for 4 - 5 years before selling. There are of course exeptions where dealers operate sites for many years.
The most frequent reason for selling is stress regarding family life. A petrol station is a 24/7 business and dealers do get tired.
More often than not the seller re-invest in a larger site.
+ What will be the best location to look for?
Of primary importance is not where the site is located but how profitable it is.
You may find a very upmarket location in say, Sandton pumping 300,000 liters per month and making a net profit of R100,00. The you may find a site in Brakpan also pumping 300,000 lpm but netting R160,000 per month.
Selling prices in upmarket areas are usually higher than other areas.
Another important factor is the distance beween your residence and the site. It is not advisable to live in Pretoria and operate a site in Springs. Driving time will eventually take it's toll on you.
+ Can you help me getting finance for starting a fuel station?
Please contact us and we can assist you with some contact numbers and organisations doing this.
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Terms and Conditions
Website consultant: David
Cell number: 0827772425
These are the general terms of the relationship between you (website visitor) and us (website owner). The terms cover all use of this website. You agree to the terms by visiting and using this website.
2. Definitions and interpretation
2.1 Definitions. In the agreement:
terms means the terms, consisting of:
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1. Collection We collect certain information: when you contact us on our website; from your web browser; from cookies we may send to your computer and from web beacons on our website to track how you use our website and to try and give you a personalised experience; and optional information, that you provide when you upload or download content from our website.
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6. Contact us You can contact us with privacy related questions at email@example.com address
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8.1 includes certain information collected when you contact us (see below); and optional information that you voluntarily provide to us (see below).
8.2 excludes information that has been made anonymous so that it does not identify a specific person; permanently de-identified information that does not relate or cannot be traced back to you specifically; and non-personal statistical information collected and compiled by us and information that you have provided voluntarily in an open, public environment or forum including (without limitation) any blog, chat room, community, classifieds or discussion board. Because the information has been disclosed in a public forum, it is no longer confidential and does not constitute Personal Information subject to protection under this policy.
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10.4 Web beacons. Our website may contain electronic image requests (called a `single-pixel gif` or `web beacon` request) that allow us to count page views and to access cookies. Any electronic image viewed as part of a web page (including an ad banner) can act as a web beacon. Our web beacons do not collect, gather, monitor or share any of your personal information. We merely use them to compile anonymous information about our website.
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We will only retain your personal information for as long as it is necessary to fulfil the purposes explicitly set out in this policy, unless: retention of the record is required or authorised by law; or you have consented to the retention of the record. During the period of retention, we will continue to abide by our non disclosure obligations and will not share or sell your personal information.
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