The sale of the engine oil business has grown exponentially to become one of the fastest moving and highly small-scale businesses that are profitable for those who are into this most sought-after product for automobiles, machines, and generator use.
It is crucial to know in depth about every aspect of the business such as how to sell, who to sell to, and ways to grow the business and so on.
It is advised that for a small-scale engine oil seller, it is best to engage reputable suppliers or manufacturers who offer quality automobile engine oil with competitive pricing, reliable delivery, and a range of products to cater to different customer needs a competitive pricing strategy that covers product costs, overhead expenses, and generate a reasonable profit margin.
Speaking with an engine oil seller, Haliru Abubakar, he said that the engine oil business is a lucrative business with lesser chances of capital loss.
“For me, the location is very important which is why since I started this business, I prefer my shop being close to a filling station, a trailer park, and other busy places where generators are used, as these people are my target,” he states.
Business Capital
He said one can start the business with N100,000 by selling on a small scale and gradually make profit.
Hence, it is imperative that one needs to identify his/her customer base including individual vehicle owners, automotive shops, car dealerships, trailer parks, or fleet operators.
While it is worthy to note that factors like market demand, competition, and volume discount from suppliers help shape the rate and cost of the engine oil.
Marketing Plan
Creating and developing a marketing plan to promote engine oil products is also important. Asides from engaging in physical sales, setting up social media accounts to facilitate easier communication is also a way to be ahead with the distribution or supply of the engine oil product.
By exploring potential partnerships with automotive businesses, such as garages or service centers by becoming an authorized or recommended supplier, one can gain credibility and increase the customer base while driving sales as well.
Good Customer Service
However, good customer service is crucial for long-term business success while communicating promptly with customers, giving accurate product information, offering after-sales support, and addressing any concerns or issues that may arise.
Market Monitoring
Haliru stressed that regular monitoring of the market, cost, and customer feedback, will help shape the product offerings, as well as staying updated on latest products for recommendation to customers.
He advised that it is important to join local associations to get information on the latest trends in the market and also, register through the Corporate Affairs Commission (CAC).
Profitability
LEADERSHIP findings revealed that this business can generate N200,000 or more as monthly profit and N2million or so annually
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