Looking for a business you’ll like to start in Nigeria? Are you a business minded person looking for what to supply in the country? You may want to consider rice distribution (supply) business in the country. Almost all the household in Nigeria consume rice at least once in two days this means the demand for rice is high.
This article will shed more light on the importance of being a rice distributor in the country. Currently the importation of rice is banned and making the commodity scarce and limited.
Where to buy Your Rice as a Distributor
The distribution of rice is different from selling rice as a retailer therefore you’ll have to buy the rice in larger quantity. There are varieties of rice available in the Nigerian market therefore you can decide to choose your desired rice from the market.
In Lagos you can get rice for distribution in the markets below;
- Alaba Rago,
- Deleko markets,
- Mile 12,
- Badagry, etc.
There are many markets for buying rice in large quantity stationed in every state the country. Therefore wherever you choose as your location, you’ll definitely find a place to purchase rice. The rice distribution business does not need special guidance or skills.
Reasons Why you should Be a Rice Distributor
1. The High Profit Margin
The main reason why anyone engage in any form of business is to make (maximize) profit. Becoming a rice distributor offers a nice investment return. The 50kg bag of rice is retailed at N10,000, as a distributor purchasing in large quantity and as a wholesaler you can get the rice for N9,700 or less.
If you made a supply of 100 bags of rice at the end of the day at the N9,900. You’ll be making profit of N20,000.
2. The High Level Of Consumption
Daily over 100 million Nigerians consume rice either at home, restaurant, canteen, etc. The population of people living in Nigeria has made the country a good place for investment due to the percentage of the populace that consume the food on a daily basis. The United nations (U.N) estimated the country’s population as over 170 million people.
3. The Level Of Demand
The demand of rice in the country is increasing in relation to the increasing to population, creating a market for investors and distributors. You can decide to carry out a survey on the Nigerian market probably the one in your locality, you’ll discover that retailers are much but the distributors are far from where they are. Therefore getting a distribution point nearby can be of great help (eliminating transport cost and stress) to the retailers, in return profit to you.
You can start in you your locality and open more stores with time. You may decide to advertise your goods to create awareness and market.
Requirements to be a rice distributor
1. A good Transport system
To convey your goods from one place to another you need a vehicle to do that. Since the business is mobile, a good means of transporting the goods (rice) is needed, you’ll need to reach your potential buyers scattered all over the country. Motorcycles, Tricycles or Motor cars, buses could be used.
2. Start with a good rice.
You can start supplying rice of high quality loved by the people, choose a particular brand (either one or two) consumed in large quantity in that area which you supply. Just get a good brand accepted by the majority of people in the area you supply.
3. A shop
The question in your mind now could be, “why do I need a shop?”. Although your business nature is mobile, you still need a shop. A shop serves as an offloading point for your rice and also a place you store the unsold rice for later distribution. Consumers living nearby can visit to your shop to buy rice.
4. Supply good Brand
Before getting a particular brand you want to specialize in, you’ll need to carry out a market survey. The market survey will give you an idea of what the consumers choice and preference. Also it will make you know the type of rice they like, either it is brown, Ofada, stallion rice, etc to avoid supplying amiss.
To get the contact of your desired manufacturer, check the label there you’ll see the contact address and phone number.
5. Get more Retailers and Buyers
The next step to take is getting much retailers and buyers, since you just started the business and you need to “devise strategy“. You can decide to reduce the price of the rice by N50 , since the retailers want to maximize profit they will definitely go for your supply. With time after you must have gotten much buyers you can decide to return the price to normal.
Also meet shops nearby and negotiate business with them, on the amount of rice they want and the price they are willing to pay. Then for a start buy the quantity your customers demands or a bit larger and increase the quantity with time and based on returns.
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