Setting up gasoline stations - is it an easy business?

Every generation needs a revolution - an entrepreneurial revolution

Once this post was approached by a former staff to invest in gasoline station.  This later was involved in what was labelled as a scam involving a former celebrity as a chairman

I would not believe their pitch because:   1. there is so much competition,  2.  there are so much dynmaism in the transportation industry, 3.  even in the fuel supply chain:  the ups and down of prices.   You must know and be able to estimate the high and low and plan your purchase accordinagly

Let us say you buy your supply at P40.00 and suddenly the new supply is at P35.00.  How do you manage the P5.00 down fall. Will you be supported by the oil company?

What about the renegade suppliers who do not pay taxes?

Even the managers of big oil who manage their own stations that the govt impose so much taxes, and their margins are so small.  They make more money and stable at that renting the spaces in expressway to stores, and foodstuff sellers.  

If they say that, how could you make profits😊

Better think of something else.

Who has a better strategy?

Every generation needs a revolution - an entrepreneurial revolution

I advised a well known food company in Central Luzon.  The leader was frozen food company whose sales reached P20 B.   The one that I advised made P3B.

However they had a competition which had sales double theirs.     While my subject thought about expanding their plant (they were talking to the supplier for food processing machinery) and prided themselves for creating their own blast freezer.  their competition thinks of linkages with smaller

food manufacturers.   They consolidated smaller producer to be part of their umbrella, use their brand

and their ads, logistics, and distribution system.

Who is more successful?

Who has a more effective strategy? Why

Is physical plant expansion always a good strategy

Who sells more? Who is more effective? Who wins awards?

Every generation needs a revolution - an entrepreneurial revolution

While working in a pharma company, I was able to observe two account executives at work:

     one was hard working, covers all his accounts religiously, gives uniform trade discounts;

     the other one covers only two king accounts, hires a driver to deliver samples and pamphlets

           to small accounts, does not give discounts to other outlets, gives only big discounts to his

           to major, king accounts.

Questions:

1.  Who sells more?

2.   Who is more effective?

3/  Would you be one or the other?