How to Expand Your LPG Gas Dealership and Increase Profits?

The demand for Liquified Petroleum Gas (LPG) is growing worldwide owing to its versatility, convenience, and environmental advantages. LPG gas is an excellent alternative to other sources of fuel also because of its wide and easy availability.

As more people shift to urban areas, the demand for clean and affordable cooking and heating fuel is increasing. Additionally, the growing adoption of LPG as a fuel in commercial and industrial sectors is driving the demand for the gas. To meet the market demand, there is an increasing rate of LPG gas dealership.

Are Gas Dealerships profitable?

With the LPG industry projected to grow at a CAGR of 7.3% in the forecast period 2021-2028, you can understand the opportunity the market holds. If we talk about numbers, the LPG market is projected to grow from around 129.17 billion in 2021 to over 211 billion in 2028 as per Fortune Business insights.

Now that you know the figures, let’s talk about how you can profit from taking up dealerships.

How to make profits from your gas agency dealership?

Expanding your dealership can be a great way to increase profits and grow your business. However, it is important to approach expansion carefully and strategically, in order to ensure that your business continues to operate successfully and sustainably. In this blog, we will explore some key strategies for expanding your dealership business and increasing profits.

Increase the Range of Products

One of the easiest ways to expand your dealership is to increase the range of products you offer. How to do that while dealing with one commodity like LPG? Well, you can stock a wide range of cylinder sizes! Stock up on the various cylinder sizes including 5kg, 14.2kg (for domestic uses), 19 kg, 47.5 kg, and 425 kg (for commercial and industrial purposes. Besides, you can also add related products and services, such as gas stoves, gas geysers, and gas cylinders in order to bring in profits through upselling. Also, your dealership can offer additional services such as installation, maintenance, or repair.

Target New Markets

When you hear of gas agencies, you typically associate their services with domestic only. Although the domestic market can be huge and potentially yield the best returns, you can broaden your horizon and venture into the market of commercial and industrial fuel. Or, you can even widen the geographical area of your existing operational zone. Expanding your gas dealership to new markets can be a great way to increase profits. In addition, you could also focus on specific customer segments, such as restaurants, hotels, or residential complexes.

Improve Customer Service

In a field where the competition is slowly pacing up, you can stand out from the rest by offering high-quality customer service. Providing excellent customer service is essential for the success of any LPG gas dealership. The better customers are served, the better your image as a dealership gets.

By focusing on delivering high-quality service, you can attract and retain more customers, and increase customer loyalty. Consider investing in training for your employees, as well as incorporating technology to offer effortless services.

Spend More on Marketing

Marketing is a key component of expanding any business. The more you are seen, the more your business grows. Hence, consider investing in online and offline marketing strategies. Since an LPG gas dealership’s customer range is quite broad, it is necessary for you to cross paths with your potential customers everywhere including traditional media, social media, search engines, and so on.

Conclusion

Expanding your gas dealership requires careful planning and strategic execution. Apart from the abovementioned ways, it is essential for you to streamline your operations. Also, keep track of what your competitors are doing as well as any changes in the market. Always remember to prioritise customer satisfaction and safety, and invest in the long-term growth and sustainability of your business.