1. The
Idea
Rice,
Beans and Garri, or any other grain out there in the Nigerian market can be
bought wholesale (50kg), rebagged (with permission from your supplier) and
resold in smaller sizes (2kg, 5kg packs).
The
common practice in the market today is they buy the full 50kg bag, then start
selling using bowls (rubber, congos). The estimated calculation for 1 congo of
rice is about 1.56 Kg. If the new business man joins in on this, but instead of
using bowls or sampling the rice in basins which leaves it exposed to dust and
people’s hands, one can rebag the rice (beans, garri etc.) in a neater well
designed pack and sell to retailers, corner shops, big departmental stores,
etc.
So
while those in the market sell their 1 bowl (congo, rubber) of rice for 550-650
naira, your packaged bag of 2Kg rice which is about 500gram more than theirs
can sell for about the upper limit of that range, like 650. You can workout
your own price to cover for your operational cost. There are 5kg bags of rice
in the market, but most are imported which are currently banned in Nigeria.
Idea Summary
- Choose your grain (Rice, beans, garri).
- Source for your wholesale supplier.
- Negotiate your price putting in mind how much you intend to sell.
- Rebag/repackage your small sizes (2kg, 5kg).
- Deliver to your customers (retailers, corner stores, departmental stores).
You
would need to approach your prospective customers first to know how much they
would pay for your rebagged grain (rice, beans etc.) so you are well informed
on what price to agree on with your wholesale supplier.
NB:
- You should not just buy rice from your supplier and rebag it with your brand name without their permission.
- Your rebagging/repackaging workplace, Equipment (Sealing machine, bag printing) should be clean and meet hygiene standards, and you should secure a NAFDAC number as well.
- You could look around for where to buy and print your bag for repackaging your Rice (beans or other grain)
- While some people might be currently doing this, no one stops more people from joining in.
2.
The Business
- Value Proposition: Provide quality, well packaged, and affordable Nigerian grains (Rice, Beans)
- Customer Segment: Retailers, market sellers, corner/street stalls, departmental stores, etc.
- Distribution Channels: Warehouse (depot), dedicated phone, sales team and customer service reps etc.
- Customer Relationship: Direct and Mass
- Key Activities: Selling (Sales and Marketing), packaging (repackaging), Logistics and distribution, etc.
- Key Resources: Sales team, Production/manufacturing facilities, management team, supply chain manager, quality control officer, financial accountant, etc.
- Key Partners: Retailers, departmental stores and other shop owners, product related Unions and associations, Government and related government agencies, etc.
- Cost Structure: Workplace facility and equipment (sealing machine, bag printer etc.), Maintenance and other utility bills, Staff wages and Salary Bill, registration and licensing (NAFDAC and other necessary documentations).
- Revenue Stream: Sales of Rebagged/Repackaged grain product.
3.
Competition
Like
every other business or anything that has the potential to bring revenue, there
would be others doing it, or thinking of doing it now or maybe later. Whatever
the case might be, there is a lot of work you would need to do. Check to see
the competition you have, what they are currently doing and how you can create
an advantage with which you would compete in this market. Look for Niche areas
where you could start supplying your resized Rice (2kg, 5kg bags). Think of
school environments too.
4.
Risks
Be sure to choose a supply that aligns well with your
operational strategy. Your supply would need to be reliable and be as quality
oriented as you should be and should not cut corners or supply you inferior or
substandard product (grains).
You would need a strict quality assurance policy at your
workplace in order to preserve consumer’s trust and the integrity of your
NAFDAC and other regulatory approvals.
Poor harvest of grains by your suppliers can affect the
availability of their supply and could have direct impact on your business too.
Summary
This week’s article has shared a possible opportunity in
buying large volumes of grain products and repackaging it into smaller bags
(2kg, 5kg), which could sell faster.
If
there is any thing I missed out, feel free to comment, share your information
or contact me, so we all can learn solve our problems together.
Thanks
for following this series.
Till
next week, stay inspired.
ARTICLE
BY MR EBIS
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Mr. Ebis on twitter @mrebis
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