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(DAY 63) Unprofessional retail businesses

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Petrol pumps...

Founder Note Topic: Entrepreneurship

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This post is part of the founder writing around Edzy, product decisions, hiring, incentives, and the slower realities of building a company.

Petrol pumps

Petrol pumps are rent seeking businesses typically owned by influential old families - politicians, business families and similar. You need a big piece of land, typically on the main road and earn a meager return per sale.

A fair & just petrol pump makes Rs 2.90/litre on petrol and Rs 1.85 on diesel. In other words the commission varies between 2%-3% and they make ~Rs 100 on every 40L filled (typically full tank).

Auxiliary services

Things appear better in policies than execution. So, as per policy, you should get Washrooms and Free air on every petrol pump. But, in practice, you get neither - at least not consistently.

Typically you would pay Rs 10 for getting the gas filled. While meager, it is 10% of the margin and an astute petrol pump manager will solve for it.

Modern Fuels Gurgaon

Around a month ago, I took the initiative of giving feedback to Bharat Petroleum about the lack of air facilities, especially in the morning. I had forgotten about it and of course, they did not act upon it. I was reminded about unprofessional retail business practices again this morning when no one was there to fill the air. At the end of the day, I will find an alternative that will be a bit more professional than the usual chalta hai attitude.


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