Four Imperative Actions You Need to Take to Master and Navigate Complex and Competitive Retail Petrol Station Industry in Tanzania

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The fuel retail sector is a growing market in Tanzania and East Africa. As the market grows, petrol station operators and entrepreneurs are in serious trouble because of a sudden surge of competition from new entrants.

In many sites nationwide, most petrol stations sell based on cost leadership and heavy discount. This reduced sales volume, which in turn led to reduced revenue.

The most pressing question is what petrol stations operators and entrepreneurs can do to build the future they are proud of

Here are some growth strategies to boost sales of your retail petrol station

1.Have aggressive marketing plans.
Most people believe that once you locate your petrol station strategically, there is no need to market it, simply because customers will flock to your station to refill their car.

But that’s untrue. The petrol station business is competitive.

You should develop great marketing strategies to attract new customers to stand out in this crowded market.

Instead of waiting to rely on motorists, recruit business clients near your service station. Also, if you can arrange or undertake an agreement with transporters, you will likely sell a reasonable volume.

2.Increase market share by adding more petrol stations to your portfolio.
Leasing or buying an existing petrol station is the quickest way to grow and thrive in the fuel sector. The more you add new petrol stations to your portfolio, the more you increase revenues. However, you should conduct comprehensive due diligence to ensure the viability of the acquisition.

3.Recruit the right salespeople and managers.
Having a service station in a suitable location that is equipped with modern dispensing equipment is not enough in today’s competitive service station division of the oil and gas sector.

To win the competition in today’s crowded retail service station business, you should ensure that your fuel station is managed by efficient and well-trained men who know how to deal with customers and keep them, men who know the products and how to dispense them. So hiring experienced people and conducting regular in-house training ensures that employees carry their duties with the required service level.

4.Add more products to your petrol station.
Instead of just offering diesel and petrol, consider selling other fuel products. Forexample, lubricants(engine oils) is fast moving selling products at a petrol station. Also, people buy liquefied petrol gas(LPG) at petrol stations. This will drive more revenue to your site.

I hope this helps.

Hussein Boffu runs a consultancy helping elite entrepreneurs reach their goals through actionable business planning. Contact him via email at hussein.boffu@tanzanapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.