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Moorings		#1 Posted : Thursday, May 02, 2013 8:02:02 AM
Rank: New-farer Joined: 1/3/2011 Posts: 67 Location: nairobi		I am giving consideration on investing in a petrol service station along a busy road along the outskirts of Nairobi. Kindly share the challenges that go along with such a venture. best.
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guru267		#2 Posted : Thursday, May 02, 2013 8:09:36 AM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		My father has two petrol stations along thika road! They have never seen a profit in 10years of operation! I'm just saying... Mark 12:29 Deuteronomy 4:16
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dunkang		#3 Posted : Thursday, May 02, 2013 8:37:07 AM
Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831		guru267 wrote: My father has two petrol stations along thika road! They have never seen a profit in 10years of operation! I'm just saying... They have never seen a profit or they have not yet reached 'break-even point'. If you meant 10 years annual loses, then that must be scary! Receive with simplicity everything that happens to you.” ― Rashi
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Gathige		#4 Posted : Thursday, May 02, 2013 8:38:58 AM
Rank: Elder Joined: 3/29/2011 Posts: 2,242		guru267 wrote: My father has two petrol stations along thika road! They have never seen a profit in 10years of operation! I'm just saying... @guru, that sounds interesting. Unless there is something not adding up, 10 yrs is just too long to have survived in business on a breakeven only. "Things that matter most must never be at the mercy of things that matter least." Goethe
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guru267		#5 Posted : Thursday, May 02, 2013 8:51:07 AM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		Gathige wrote: guru267 wrote: My father has two petrol stations along thika road! They have never seen a profit in 10years of operation! I'm just saying... @guru, that sounds interesting. Unless there is something not adding up, 10 yrs is just too long to have survived in business on a breakeven only. It was just a business set up for my mum to keep herself busy... But I'm pretty sure they are being funded by cash from other business! I'm not sure if its my mothers poor management but me thinks it is just a bad business to be in! Mark 12:29 Deuteronomy 4:16
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guru267		#6 Posted : Thursday, May 02, 2013 8:54:47 AM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		The margins for the best in this business based on Kenol Kobil which operates on large scale are just 2%! This means possibility of a loss year after year is not very far fetched! Mark 12:29 Deuteronomy 4:16
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Jamani		#7 Posted : Thursday, May 02, 2013 8:57:25 AM
Rank: Elder Joined: 9/12/2006 Posts: 1,554		You might make money if you own the land put up the infrastructure to standards then invite the big operators to bid for branding at a fee. Meanwhile lease out the convinient store, restaurant, ATM locations to banks, etc. You will be doing more of real estate than running the station or rather you will be making money on rent and use the petrol station to pull clients.
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Jamani		#8 Posted : Thursday, May 02, 2013 9:01:04 AM
Rank: Elder Joined: 9/12/2006 Posts: 1,554		guru267 wrote: Gathige wrote: guru267 wrote: My father has two petrol stations along thika road! They have never seen a profit in 10years of operation! I'm just saying... @guru, that sounds interesting. Unless there is something not adding up, 10 yrs is just too long to have survived in business on a breakeven only. It was just a business set up for my mum to keep herself busy... But I'm pretty sure they are being funded by cash from other business! I'm not sure if its my mothers poor management but me thinks it is just a bad business to be in! Be sure it's nothing to do with her management skills
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Moorings		#9 Posted : Thursday, May 02, 2013 9:33:27 AM
Rank: New-farer Joined: 1/3/2011 Posts: 67 Location: nairobi		Your input has been of great value & insightful - thanks. I own the plot as such the options available dealing with oil marketers are; a)setting up the infrastructure and they lease to do their business b)setting up the infrastructure then i do the business with their brand name c)they lease the plot and pay a lease fee I have thought of engaging services for a bankable feasibility study on this to shed some insights going forward. Anyone with experience on this? best.
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Gathige		#10 Posted : Thursday, May 02, 2013 9:36:52 AM
Rank: Elder Joined: 3/29/2011 Posts: 2,242		guru267 wrote: The margins for the best in this business based on Kenol Kobil which operates on large scale are just 2%! This means possibility of a loss year after year is not very far fetched! @guru, this does not sound realistic. 2% is just too low for any business. Even a mama boga kibanda has a higner margin than a quoted Co? "Things that matter most must never be at the mercy of things that matter least." Goethe
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