STATION MANAGEMENT MODES OF OPERATIONS
Total Nigeria Plc’s Network of Retail Stations is the most visible part of our business which we have developed over 63 years of operations in Nigeria. This provides existing and prospective owners who wish to partner with TotalEnergies, with different management options of operating a service station. Below are the diverse options available:
An individual or entity has developed a station but is unable to or unwilling to manage it, Total’s Outright lease plan can be opted for by leasing the station to TotalEnergies for a specified number of years (preferably 10 years). However, 5 years may be considered in certain cases. TotalEnergies pays rent to the owner for the number of years agreed. TotalEnergies manages the station free of interference from the owner for the agreed period. This lease may be renewed after the expiration of the contract subject to mutually agreed terms by both parties.
DEALER OWNED DEALER OPERATED (DODO)
DODO VOLUME LEASE
Where an individual or entity has a station and would prefer monthly returns (income) as opposed to an upfront payment in advance, this option may be selected. A commission per litre is agreed between TotalEnergies and the owner and the owner is paid monthly based on the volume of white products sold at the station. This option is for a minimum period of 10 years with an option of renewal after expiration for the same period of years. The agreed margin/commission will be fixed for the first 5 years but may be reviewed every 5 years.
Total will manage the station without interference from the owner.
DODO CASH & CARRY
Under this option, the owner manages the station using TotalEnergies's brand (Franchise) in line with TotalEnergies's marketing policies. In this case , the owner of the station purchases product on a Cash and Carry basis from TotalEnergies . Supplies to the station will be exclusively done by TotalEnergies. A specified commission per litre will be agreed upon by both parties and the agreed commission is discounted at the point of payment before supply. The station personnel are the owner’s responsibility but Total will supervise the recruitment and training.
TotalEnergies will brand the station at its cost but the owner is expected to pay a fee for using the brand.
Like the Dodo Cash & Carry, in this option the station owner manages the station. However, the owner will be given a credit facility and products will be supplied on credit.
The credit facility given will be to finance the working capital requirement of the station. The station owner will be expected to pay a security deposit which will also be a percentage of the working capital requirement.
The station will be supplied on credit but will be managed by the station owner with the assistance of an experienced Driveway Supervisor (provided by TotalEnergies) to help the station owner in the general management of the station operations in compliance with TotalEnergies's marketing standards. .
TotalEnergies will supply all products to the station. TotalEnergies will brand the station at its cost but the owner is expected to pay a fee for using the brand.
VENDOR MANAGEMENT SERVICE (VMS)
Where there is a corporate entity that requires substantial fueling needs for logistics, power, manufacturing etc., TotalEnergies can install a customized fueling facility in their premises based on agreed terms by both parties.
TotalEnergies's Vendor Management Service is a system whereby TotalEnergies deploys its specialization to handle the management of a customer’s fuel needs on behalf of the customer. It aims at eliminating the burdens of the daily administration of energy requirements from the customer, thereby allowing the customer focus on his core business.
Indeed Total caters to all types of business needs/requirements as it pertains to the management of service stations.
For further information, please do not hesitate to contact us through our email [email protected] and you will be contacted by a member of our Retail Development team immediately.
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