What's cost of acquiring 1 metric ton skid storage tank pls?

Hello, I'm sorry we don't have 1ton skid plant. our minimum capacity is 2.5tons

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good morning

ncolumella:
Hello, I'm sorry we don't have 1ton skid plant. our minimum capacity is 2.5tons

ok thks......what's d current cost of the 2.5MT (is it new one or Fairly used pls?

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is there any smaller than d 2.5 Ton cause I need to start with something smaller

ncolumella:
Dear Investors,


PLANT
======
Cost of the mini plants varies depending on the tank size and design. (Please call or email & request for our product Catalogue

Our most Affordable plants cost :
Pneumatic System

● 2.5ton mini plant : N5million
● 5ton mini plant: N7million

Electronic System

● 2.5tons mini plant: N7million
● 5tons mini plant: N9million


LAND/SPACE
===========

The minimum land requirement to setup this LPG facility is 1 plot of Land. To decide on the best location to setup your mini refilling plant facility, consider a highly populated residential areas. Being a bulky product, transportation of cooking gas can be costly and cumbersome. Many consumers would prefer buying gas in their locality therefore, locate your business in a place not too far from residential areas. Having determined the demand for cooking gas in the area, decide on the best location within the place for your business. Your ideal location will be an area with high traffic such as a busy road, street or street junction close to a market place.

LICENCE
=========we would secure all required permit for your facility to operate. Some of the permits includes • Town Planning • Police Report • Fire Service Report • Environmental Impact Assessment report • Department of Petroleum Resources (DPR)



PROFITABILITY
=============

80 (12.5kg) cylinders makes 1ton of gas
So a 2.5ton skid plant is 200 (12.5kg) cylinder

● Cost off filling a 2.5ton plant is usually between N350-400k (including logistics)
● operational cost (which includes a generator, staff, etc) is N60, 000 monthly

● Cost of 12.5kg cylinder is N3000
Sales cost: N3000×200= N600,000
N600,000-400,000= N200,000
N200,000-N60,000= N150, 000

● [b]Profit: N140, 000/2.5tons of gas

NOTE: 2.5tons of gas can be sold daily with a good Location, business model and marketing strategy




Please Call for more information write to our email to receive our product catalogue and how to startup your business

SARGAS ENERGY LIMITED
Call/Whatsapp: 08029716876
Email: services@sargasenergy.com

http://www.sargasenergy.com

While l dont want to sound discouraging, l think your profitability analysis is an "over-estimation" which minimizes incidental costs while trumping
possible revenues.

*Operational cost will certainly be more than #60,000 monthly (At least two staffer alone will gulp that amount! Now let us talk about cost of electricity, Security, maintenance of plant and machinery, incidentals, Wage of the investor himself.... or will he be working without any form of subsistence?

*It is overly optimistic to expect the "neighbourhood seller" to keep selling 80 Cylinders daily. Usage of a Cylinder per household takes some time and it is not a product that is bought on a daily/weekly basis.

*You did not state the period of return on investment, seeing that the investor would have sunk a minimum of of 20Million (about 5-6 Million for the business, land in such locations as you describe (residential) will not go for less than #10Million) so, why should anyone tie such valuable property down, still invest about #6 Million on a business which gives an overly optimistic #140,000/ 2.5 = #56,000?

*Giving such land to a developer to put a 3 storey building (highly residential area) would yield more returns, is a safer and more long-term investment.

*Again, the inherent danger is siting such venture in a highly residential area (we still remember the Enugu debacle), even for PMS, is considered highly risky to the populace, not to mention GAS!

*Unless you are going to sign a "Money-back guarantee within a specified period" with the investor, getting the necessary approval for sch venture in a highly residential area is as good as the proverbial Camel passing through the eye of a needle!.

While l think the business itself (gas dispensing) is good, l think the SWAT analysis has been deliberately skewed to lure the 'green-eyed' into the business.
This is a critical analysis of your business model and pls dont take it personal.

Do a more objective analysis and let us see what happens.
Wish you more success.



Lastpage!

BTW: you have ignored the questions of a few 'respondents',..... in previous pages and that is telling!?