How much it actually costs to buy a petrol station in South Africa
Have you ever wondered if there's money in petrol stations? Let us fill you in...
It's that time of the month, when the wallets become thin and petrol becomes stretched.
As the cost of living is on the rise, fuel prices are a huge concern for South Africans. Recently, BusinessTech revealed how much it actually costs to own a petrol station plus, how much you can expect make from it. Let's break it dow for you:
- The price tag
First things first, let's talk numbers. According to BusinessTech and local commercial property agent Cyrus Brokers, the cost of becoming a petrol station franchisee can vary widely.
For instance, there's a station in the Midlands, KZN, listed at a cool R38.5 million. But it's not just a fuel station; it's practically a kingdom! This spot includes a franchised shop, restaurant/takeaway businesses, and a solid 10-year supply agreement with an oil company (extendable to 12 years). If you're eyeing this gem, be prepared to fork out around R40 million when you include the necessary stock.
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- What you can earn
Now, onto the exciting part—potential earnings.
The Midlands-based station reportedly pulls in an estimated net profit of R390,000 per month. That's no small change! This figure isn't just a guesstimate; it's based on solid business metrics and the station's strategic location, which ensures a steady stream of customers. As we can see, where it is located can affect the income.
Stations strategically positioned along busy highways or in densely populated areas tend to see higher footfall and, consequently, higher profits.
For instance, the KZN stations listed for sale are positioned to attract a substantial customer base, contributing to their impressive earnings potential.
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With government-regulated fuel prices providing a consistent profit margin and additional revenue streams from convenience stores and car services, petrol stations can be highly profitable ventures. Of course, like any business, profitability can fluctuate with global oil prices and economic conditions, but the fundamentals remain strong.
So who knows, maybe you'll end up owning your very own petrol station one day?
Disclaimer: Prices and earnings mentioned are based on current listings and estimates as of 16 July 2024. Actual figures may vary. Always conduct thorough due diligence before making any investment decisions.
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