Cement
supply business is one of the best and easiest building material business
anyone could start right now. People have been looking for information on How
to start cement business in Nigeria without finding any substantial details. In
this article, I want to explain in detail to the extent of my understanding,
how anyone could start cement business anywhere in Nigeria without beating
about the bush.
Let's
first of all look at the merit and profit potential of this business using
Dangote cement supply as study case before we continue to the detailed step by
step how to start. Like I said before, its one sure business that everything in
it almost seems guaranteed and I can assure you that people who are already
doing it are making good money.
 |
| Dangote-Cement - Sample of Dangote Cement |
A
bag of Dangote cement from the factory goes for N1,000 with the minimum buy of
one trailer load (600 50kg bags) quantity that cost N600,000 only. If you
supply the six hundred bags at the retail price of N1600, you will be making
profit of 600 x 600 = N360,000 from the single one trailer trip. When you
subtract the cost of transportation, your take home becomes N300,000 per trip
If
you decide to sell wholesale at the cost of N1,350 to retailers, your profit
would be N350 x 600bags = N210,000 from a single trip. When you subtract the
cost of transportation, you will be left with N150,000 per trip.
Now
tell me - N150,000 to N300,000 gain per trip from investment of N600,000
without complex logistic and workforce, is it a good or bad deal? Write your
answer as comment below and let's know how you feel about this. But in my own
opinion, I believe it's a very good business.
If
you supply 10 Trailers within any period of time, you are going to be smiling
home with N1.5m to N3million depending on the method of supply.
To Start as a
Distributor
1. Distributor - You need to
fulfill certain simple requirement to become Dangote Cement Distributor. In
effort to ensure distribution of cement all over Nigeria, Dangote Cement is
currently seeking credible distributors form any part of Nigeria. In this regard,
credible means, individuals who owns a registered company that is, whose
business is registered with the Corporate Affairs Commission of Nigeria.
To
qualify to apply as Dangote distributor, you need to put the following things
in place:
Register
your company with Corporate Affairs Commission
Once
you have your company registered which is very simple to do and requires just
little amount of money. Just about N50,000 will do that for you if you want to
do it yourself. When you have that sorted out, the next is to open a corporate
account in any Nigerian bank with the company name.
Open
Business Account in any of the Nigeria Banks of your choice
To
open a business account in Nigeria, you would require a clearance from EFCC's
Special Control Unit against Money Laundering (SCUMIL) to ensure that you
wouldn't carry money go hide in oversea.
After
that, you go to Federal Inland Revenue to get Tax Identification Number (TIN)
which shows that you are willing to pay tax.
These
are the two major requirements for opening business account in Nigeria, the
bank will tell you other things you need to do. Within moments after you've
provided all what is of you required, your account will be open. Then you get
reference letter from the bank and proceed to Gangote.
Dangote
Cement Registration Requirements
Please
ensure that you have the soft copy of the following documents before you begin
Application:
1. Certificate of Company Registration from the
Corporate Affairs Commission
2. Application Letter to become a distributor
3. Scanned copy of the Bank reference letter
4. Passport Photograph of the company's
Proprietor/MD
5. Passport Photograph of the company's
Representative
48
hours registration period guaranteed
Minimum
purchase of one trailer i.e 600 bags monthly on cash & carry basis
No
Application/Registration deposit required
 |
| Trailer-Loads-Fandango-Cement - Trailer Loads of Dangote Cement ready for supply |
What
strikes me here is the "cash and carry" clause after going through the
entire rigor to register company and get reference latter from the bank! If I
am buying to pay you cash, why make me go through this process, or is it the
Nigerians usual way of playing gods when the power is in their hands? Please
kindly make us understand.
Anyway,
this will be for next article but for now, let’s proceed with our business.
Other
Logistics You Need to Put in Place!
Whale
House - Except you have standby customers you want to supply, you need a secure
place to house your product. Get a whale house or any big shop that can
accommodate minimum of 600 bags.
Some
but theirs in open place and cover it with tarpaulin for safety but that
depends on the quantity you are buying, if you are buying very large quantity,
you'd need to get a big whale house.
Arrange
for Supply Vehicle - If you can buy yours, which would be nice. In fact, it is
another business on its own - whenever your customer buys, you'll supply them
and make extra money from the transport and load fee. You can use it as
marketing tool to sell faster than others by offering free delivery to
customers buying certain quantity.
If
you can't buy yours, just arrange for regular customer who would be assisting
you get the cement to the final destination.
Apart
from these two, there are no other many things to worry about. Get down to
business and starts making money as soon as possible.
2. Retailers - A retailer
don't need to go through all these process of application. Once you have your
money, you are good to go.
Go
to the nearest depot and buy your cement and begin to sell. Each bag of cement
you sell, you make profit of N250 - N300 which a good deal considering that you
do nothing more than go carry your cement.
You
need to have a shop by the roadside or near new site where building projects
are ongoing in number.
Many
people sell as retailers even without a shop especially those that leave near
the road. All you need to do is to rise up the ground a bit with blocks and
cement, plaster the ground and put some container woods.
You
can build iron protector around it if the place is unsecured to avoid thieves
visiting at night.
One
thing very good about cement business is that a single customer could buy
hundreds of bays sometimes, giving you instant profit without breaking sweat.
Note: We used Dangote Cement Industry as study
case in this article. However, there other great cement companies out there. If
you think the process of distributorship application is simpler and straight
forward in your company, write detailed article about doing business to you and
send to us. See our email address Here.
I'll be glad to publish it here with a bottle of coke.
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