Petrol Pumps

Southsider1

Quick query for a client:

If he was to ytake over a closed down petrol station, would the petrol company supply the pumps or does the operator have to?

Dutchie

Depends who originally owned the petrol station and what it was/is branded (TOP, EMO, Texaco etc.)

Your client can source his/her own product. There are numerous oil logistics companies drawing product from Dublin, Cork and Derry ports.

Bandara

As part of the deal for signing with an oil company he can get canopy, pumps, pole sign etc supplied and branded, also a contribution towards shop fitou can be negotiated. The operator will also agree a discount off schedule pricing when signing.

The oil company writes then off over the lenght of the contract so there is no cost to the operator once the contract term is honoured.

Be aware that you will need personal guarantees of approx 80k in place for the fuel company and approx 60k+ for the shop supplier. Also cashflow of about 80k from day one is required as you will not get any credit terms on fuel deliveries and at present a delivery is costing close to 50k. Also your newspapers/lotto etc can eat up
another 20k of bank guarantees.

Finally it he is intending to run as an independant (which is a
very very bad idea imo) then the cigs companies will not supply him directly without substancially guarantees in place

Dazzler88

these guys seem to be changing the face of the coporate fuel company. As far as I know they dont sign you into a contract.
www.greatgas.ie

Dutchie

I agree with Hammertime. It would be commerical sucide to go down the unbranded route. If i were in your postion i would enter into an agrrement with a large well established brand. At the end of the day it is your shop that is going to add to your bottom line and not your hydrocarbons.

Also brands like Great Gas do not have a strong market presence. I think the strongest most secure brand at the moment is Topaz.

Bandara

GreatGas are fine for a little pokey blackwater station.

if your going to do something then do it correctly imo.

I think Maxol are far and away the best brand out there, and now they have aligned themselves with Spar (as against the far weaker Mace) I think there the people to talk to.

But I agree with Dutchie in that Topaz are superb as well, there branding is the best in the industry imo

Southsider1

Thanks guys! We've looked at a few and Topaz don't seem to be the 'fairest' to deal with. EMO and Apple green seem good. Any opinions on them?

Dutchie

Emo (DCC) have a very aggresive expansion strategy primarly through acquisition at the moment and are in the Irish market for the long term. They are tied up with Mace.

Applegreen are also involved in an agressive grrenfield expansion strategy. All supply chain activites are carried out by the same logisitcs company ( a first in Ireland). they are opening new stations on all new motorways.



What county is your petrol station located?

antoinolachtnai

Hammertime wrote: »

But I agree with Dutchie in that Topaz are superb as well, there branding is the best in the industry imo

I'm not in the biz, but I have my doubts about Topaz. Everything is predicated on expensive, modern, fancy shopfits - that is the strength of the brand -. It's fine as far as it goes for major major stations, but for medium and smaller, I don't know.

As pieces of design and branding, abstracted from the spend, I'd agree that Maxol is a very strong brand in this country, and very distinctive. I didn't know they'd jumped the fence to Spar, which is probably a fine thing. Of the new crowd, I'd say that applegreen is the one that is most distinctive.

I wouldn't fancy going independent at this stage of the game.

It is obviously important to understand that you are selling the petrol 'for free' so to speak.

PhatPiggins

Southsider1 wrote: »

Thanks guys! We've looked at a few and Topaz don't seem to be the 'fairest' to deal with. EMO and Apple green seem good. Any opinions on them?

What industry are you in yourself?

Bandara

Southsider1 wrote: »

Thanks guys! We've looked at a few and Topaz don't seem to be the 'fairest' to deal with. EMO and Apple green seem good. Any opinions on them?

Emo are a crap brand, and Applegreen is like Satan reborn, when they take a pound of your flesh they use a dodgy scales.....

Just my humble opinion of course....

Southsider1

PhatPiggins wrote: »

What industry are you in yourself?

Accountant

Bandara

PhatPiggins wrote: »

How much are you charging them for the info you're getting on here for free

About they same are he charged for his expert advice on the "recommend business professionals" and the "letter of credit" thread, among others.

Nuttzz

Hammertime wrote: »

Emo are a crap brand, and Applegreen is like Satan reborn, when they take a pound of your flesh they use a dodgy scales.....

Just my humble opinion of course....

I didnt think applegreen were a franchise operation? I thought all of these were run by petrogas?

Dazzler88

Nuttzz wrote: »

I didnt think applegreen were a franchise operation? I thought all of these were run by petrogas?

im not sure..Applegreen have been granted the contract for the new 6 motorway stops..

lion_bar

what about the unmanned diesel station out by dublin airport? Is that model better (more profitable) than a self-service station with a shop?

As a consumer i certainly prefer their lower cost.

Dazzler88

lion_bar wrote: »

what about the unmanned diesel station out by dublin airport? Is that model better (more profitable) than a self-service station with a shop?

As a consumer i certainly prefer their lower cost.

That is an debeatable question.Same would say Yes others would say NO.

Most petrol stations make a small margin on fuel but when they get you into the shop they make it on mars bars,coffee,sandwiches etc.

That station at Dublin airport is very convenient,especially considering its location. but if it makes a huge profit is another question.

killiank

Very Very tough business to be in at the minute. I do accounts for 12 service stations around the country & not too mant of them turning in great figures. Fuel margins are just too tight & there are a million things that people just dont realise when they get involved. What others have said is correct in that you need personal guarantees & a large amount of cash to fill actually buy the initial stock.

The one thing ive noticed is that yeah you can get companies to pay for pumps & fit out etc but they will just take the money back off you in another way i.e. central billing admin costs etc. Plus you are contracted in to buy the vast majority of your goods from them.

Supply agreement for the fuel unquestionably the most important thing here. If you cant get the fuel at the right price then you arent going to last very long.