Cooking oil retail business

SECRETS TO COOKING OIL RETAIL BUSINESS

Cooking oil come from filtered fat of plant or animal extracts. It is used for frying fish, meat, and poultry or to sauté vegetables. Some cooking oil become liquid under normal room temperature, but some become solid when in cold weather or rainy days, like coconut and palm oil.

There are many kinds of cooking oil in the market today, which need not be mentioned here anymore because it is not our concern to name them even to study its individual characteristics whether to provide positive or negative effect on our health, or not.

Our primary concern here is about making the local cooking oil be our chosen business as our means of livelihood to earn a living. Retailing the cooking oil is one of the best small businesses to put up; since it provides very good profit if you sell them in retail, whether in front of your house or outside in a very good location because it’s saleable, since cooking oil is frequently used in cooking foods by most household on a daily basis, not to mention those small eateries and bakeries that consume oil more than the usual ordinary consumers.

Therefore, is it not wise to start a business that, apart from just a small investment to shell out that gives big profits, the market demand for this item is very high? So, what are you waiting for? Start learning now the ins and outs of this trade and decide for yourself afterward if you will seriously venture your small capital to this profitable business.

Business Tips:

1. Find a reliable cooking oil supplier

There are some cooking oil suppliers who are also looking for customers like you. However, it is seldom to find their delivery trucks in the streets because they are not the rolling store like those panel trucks that sell cheaper local rice and other products intended for the not so well to do families in many areas. Unlike other delivery trucks, most ordinary or unbranded cooking oil service trucks that make deliveries are using enclosed vans and do not have names on it bearing the kind of products they are carrying.

So, what you should do is to ask those retailers near your local public market about how and where they get their supplies. Likewise, know from them the regular day and time schedule their suppliers usually visit their business site for you to anticipate their arrivals. If they are hesitant to tell you, or you sensed that they are not telling the truth for fear that you will pose as their future competitor; you may as well try to go to the market’s parking lots and find if there is a parked truck of cooking oil delivery, or ask some people vending near that area, or a parking assistant if they know some trucks of cooking oil that park there and tell them that you want to buy. If you are not lucky enough to get any information from them and did not find one in your first try, you should be patient enough to visit the said place frequently, until you successfully find them. Then, you know what to do, like: telling them that you are interested to buy and ask the wholesale price per container, the type of oil they are selling, get their contact numbers or, their business address, and know the name of that person.


2. Find the right type of cooking oil to sell

Looking for the right type of cooking oil to sell is one of the most important things to consider in this business. Never use branded edible oil that usually seen in the supermarkets that were placed inside a metal can or plastic container with brand name label on it, or frequently shown in tri-media advertisements because you cannot be able to gain good profit from them, especially when there are strong competitions in the area where you intend to put your business, since their prices are much higher than the those regularly sold in the streets, or in your local wet markets. And, surely you cannot beat competitions.

When you try to ask the vendors/retailers in the streets or in the market about what type of oil they are selling (the ones already wrapped in cellophane in different sizes) you will know the brand. However; some, if not most, vendors do not have any idea what type of oil is pure or not, if mixed with recycled oil, since many enterprising backyard suppliers buy recycled cooking oil from some big restaurants or fast foods for a very cheap price and filtered it on their own, then mixed with the pure one. Some small retailers do mixed half of the pure oil into half used oil, or make a 50-50 mixes as its ratio and proportions to acquire big profits. Recycled cooking oil mixed with pure oil is reddish in color, while the pure one is much clearer.

If you try to use the cooking oil mixtures to fry, say: half of a kilo of already peeled peanuts you will notice that the adulterated cooking oil is bubbly or foamy, while the unadulterated type is tranquil when used. So, selling this refined or pure oil will give you an edge over your competitors in terms of quality, not to mention the health benefits it may provide your customers. However, if you could not find good quality cooking oil you may just start your business using what is readily available supply of cooking oil in the market, until you find good one.

However, you may need to switch to a much cheaper type of brand if you feel that your daily sales is already very much affected by your direct competitors who offer low quality brand, but still being patronized by the majority of customers belonging to a low income bracket level.

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