Today on building contractor secrets, i would be talking about Petroleum Marketing. On this post, you will understand the meaning of a marketer as far as petroleum business is concerned, you will also understand the different types of marketers as well as the advantages and disadvantages of these types of marketers.
To begin proper, lets quickly understand the meaning of a petroleum marketer.
Who is a petroleum marketer?
A Petroleum marketer is an individual or a company that takes possession of petroleum products from refiners or refineries with the aim of selling same to retailers or directly to the final consumers. The retailers are usually those with Petrol stations where these products are dispensed to the final users.
How Many types of Petroleum Product Marketers do we have?
As far as petroleum marketing is concerned, there is a dependent as well as an independent marketer.
Who Is A Dependent Petroleum Product Marketer?
If you as an individual or you have a company that holds a franchise of a major oil marketer or market under their name but does this marketing at your own facility which is branded by them then you’re a dependent marketer because the major marketer serves as an Umbrella over your head as far as this business is cooncerned
What Are The Advantages Of Being A Dependent Marketer?
1. The advantages are much. One of these advantages is the fact that you will be able to build your business off the brand of the major maketers
2. Another Advantage of being a dependent oil marketer is that just like a child, you will be riding on the back of your chosen major marketer and this would help you tap into their customer base and use this to grow your business wherever it is located
3. Still on the advantages of being an independent marketer, you wont need to employ a represenntative to represent your interest at the depot. This representative side of the business is or would be covered by the major marketer .
4. Another advantage is that while the independent marketers struggle their way trying to generate bank draft, you couls simply pay directly into your major marketer’s bank account
5. Promoting your business wouldnt be necessary as the major marketer under whom you’re registered would cover these without you having to pay for it.
What are The Disadvantages Of Being A Dependent Marketer?
I will go straight to the point here. If you venture into the business and decides to be a dependent marketer, everything you do, your operations would be dependent on the terms and conditions set aside by your major marketer since he has the final say in all.
In addition to that, your profit would not be as it would if you were to be an independent marketer.
What Are the Examples of Major Petroleum Marketers In Nigeria?
The Major Marketers In Nigeria Include:
Mrs Oil, Etc
Who Is An Independent Petroleum Marketer?
An Independent Petroleum Marketer is on who builds his petrol filling station and operates same with his own registered name, he also buys these petroleum products from NNPC and has a representative and an assistant representative who stands by him at PPMC Depot.
What Are The Advantages Of Being An Independent Petroleum Marketer?
1. Since you operate this with your name, there is no need for external force to step in to direct your affairs. This simply means you stand a chance to build your brand and marketing logistics
2. You purchase products from NNPC at a very low price compared to the selling price. More profit right?
3. The Policies of other companies, their standards would have no effect on you.
What are the disadvantages of Being an Independent Petroleum Marketer?
The disadvantages are quite much, be i am going to list just a few important ones. the ones that matters.
1. Being an indepenedent marketer means you must have your own tanker as it is what you’ll need to transport your product from the refinery to your place of sales.
2. As an independent marketer, whenever you lift products on your own from the depot (NNPC), you’re charged a total of N5,000. This is paid to IPMAN – the governing body for independent marketers.
3. Now You’ll also need to market your image and build a reputation which requires a lot of adverts and other things that makes your customer keep coming.
4. In case you aren’t funded enough to own your a tank, you’ll be required to hire truck from haulage companies and this could lead to delay sometimes.
5. As an independent marketer, you’ll be extorted, fire incidents could occur also (Fire Accidents Are usuallly general though). These all leads to the lost of revenue and profit becomes small.
Now as i promised in the first paragraph, i have been able to help us understand who is a petroleum product marketer, types of petroleum product marketers, we have also discussed the advantages and disadvantages of being either an indepenedent marketer or a dependent marketer and so it now left for you to choose which of these categories that suits your business interests.