How to start engine oil business in Nigeria
Engine Oil business is a worthwhile investment. Engine oil is one of the most frequently used products in different countries around the world. It is important both domestically and industrially. At the moment, there are lots of investors already part of the engine oil business, the door is still very much open for more investors. Properly packaged engine oil does not mess up the area around which it is stored. This is in addition to the fact that it does not get spoilt because they are FMCG (Fast Moving Consumer Goods)
For those that are interested in investing in this business, let us dwell a little on the market available for it in addition to basic requirements for Engine oil business.
Kinds of Engine Oil and Engine Oil Business You Can Do
Motor Engine Oil
Motor engine oil is one of the most widely used lubricants. It can come in as 5W 40 or 5W 30, this is dependent on the treatment given to it by the manufacturer. In certain cities, demand supersedes supply while in other locations, the reverse is the case. Whatever is the case in your city, everyone that makes use of a vehicle will need engine oil. The fact that car owners are scheduled to change their engine oil by car manufacturers means there will always be business for you.
Automatic Transmission fluid
Lots of cars in use today make use of automatic gearing systems. It is generally known that anytime metal moves against metal in a machinery, there should be lubrication to prevent wear and tear. This has therefore brought about a need for automatic transmission fluid. This oil has different specifications. It all dependent on the manufacturer. The specifications are Mercron, Dextron, and DW (ZF) ETC. This oil is changed on a basis which is dependent on mileage.
Usually, automatic transmission oils are not in high demands like engine oil, with a good location, you will always have regular patronage. As a result of the high number of cars plying the road daily, you will always have customers to patronize you.
Break and Clutch Fluid
Break and clutch fluids are very similar. They are usually used by cars that use manual systems. The specifications for brake fluid as well as clutch fluids are about the same, they usually come as dot 4 and 3.
Diesel Engine Oil
Diesel engine oil is not only used by vehicles, it is also by heavy industrial machines in manufacturing industries. Due to this, sometimes, the demand for diesel engine oil gets higher than the demand for gasoline oil. The specification for diesel engine oils is usually 15W 40. Due to the heat generated by machines while using diesel oil, it is thicker than other oils
Grease is used to prevent rust. As a result of this, it is in very high demand both by industries and mechanical engineers.
This should be sold alongside engine oils. This is because it is used by individuals after they have used engine oil. The use of this oil helps in the reduction of heat that is generated when engines are at work. Although, this oil cannot be called a lubricant, it is almost as important as lubricants. It is particularly useful to individuals that make use of gasoline oil.
Requirements For Starting a Lucrative Engine Oil business in Nigeria
To invest in the sale of lubricants, in addition to the types of lubricants available, the following are required.
This is a must have if you are going to have a successful business while selling engine oil. To start dealing in lubricants, you will need space to house your products. The size of your ware house is dependent on the volume of stock you are interested in dealing in. Your ware house should be divided into sections. This will make it easier for you to get across to the brand and product of your choice without having to go through a long process.
In addition to sectioning, your warehouse should be made secure from thieves, rain and sunlight. Also ensure the presence of fire alarms, fire extinguishers and a visible sign that indicates no smoking.
Your ware house should keep your goods away from sunlight because sunlight has a negative effect on your stocks. Exposure of your goods to sunlight could damage them, therefore leading to a reduction in sales.
Get to Know the Opinion of Prospective Customers
At this point, it is important to have physical contact with your prospective customers. This group of people include manufacturing companies, mechanics and general car owners. The type of vehicle used in your neighborhood also will determine the type of products to be sold by you.
Get Supplying Companies
There are lots of companies that deal in lubricants. It is good to visit a whole lot of them as this will help you get a good bargain. The fact that you can easily change from one supplier to the other will help you get a good bargain always
Get a Truck
Mobility is a very vital factor to be considered if you are interested in going into the sale of lubricants. To be successful in this business, a truck is needed. The size of the truck does not matter. A truck will help you convey goods from the manufacturer’s to your ware house and to your customers. After getting a truck, the next step is to employ a driver. The driver must be able to do the work of a driver as well as a sales person. In addition to the driver, employing one or two sales persons will be idea
Those that got involved in your survey will be your target market. To win your customers, you will have to sell to them at a reduced rate until you are established.
Prospects and Profit
The business involving the sale of lubricants is very profitable. Averagely, 10% of the amount invested can be made as profit for a start.
With proper consideration of the following factors; miscellaneous, initial salary for about 5 staff and initial investment on stocks, you can create a good budget.