The lubricants(engine oil) sector is growing quickly in Tanzania and Africa. Increasing the number of vehicles on the road and the desire for regular maintenance for owners to take better care of their vehicles drive the expansion of the lubricants market in the region.
The value of incorporating lubricant products in your petrol station is clear-increasing the potential for high-margin addition to the business and building customer loyalty.
While some petrol station owners and operators have leveraged lubricants products to drive more customers and deliver growth, potential remains for additional petrol station owners and operators to incorporate lubricants products as a part of their offering
Four Opportunities for incorporating lubricants in your petrol stations
1. Blending: You will start a small lubricant blending factory/facility, produce wide range of products and sell at your petrol stations. In this option, you must import base oil, formulation from abroad, buy machinery and hire experienced professionals to produce high-quality products. Its a lucrative business model but also capital-intensive.
2. Use the third-part blending facility. In this case, you will reach current lubricant blending/manufacturing companies in Tanzania, they will blend and package products using your chosen brand name. This business model gives you more profit and total control of your business than becoming a distributor.
3. Import lubricant Oils. As an oil importer, you distribute other supplies oils. The benefit of this model is that you can dictate your own price in the market and have the power to introduce your own packaging and new brand.
4. Become a Distributor: In this option, you will apply to become an oil marketing company’s super dealer who will work partly with them to sell their lubricants. Your supplier(large oil marketing company) will supply you with a wide range of lubricants in bulk at a fair wholesale price, and in turn, you will sell and earn a modest profit margin, and you may decide to sell at a retail price double profit.
