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How Lucrative Is Cement Distribution Business? - Investment - Nairaland

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How Lucrative Is Cement Business / How Lucrative Is The Transportation Sector?? / Is Cement Business Viable (2) (3) (4)

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How Lucrative Is Cement Distribution Business? by tjaytb: 6:55pm On Jan 19, 2017
Please people I need a VERY urgent reaction to this thread. I beg you please a serious response is most appreciated.

My mum just invested in Cement distribution business of recent knowing very little about it (all thanks to neighbours and no-all friends). I got wind of it just now and I still can't shake the ridiculousness off. Long story short,
She buys at 2250/bag (transportation inclusive)
She's distributing it at 2300/bag.
So on one trailer (600bags) she's making 30000. To me this is ridiculous.

That's like saying on a business of 1,350,000 (One mil. three hundred and fifty thousand), she's making 30k profit.

Please people, is this normal or she's doing something wrong.
Re: How Lucrative Is Cement Distribution Business? by Nobody: 8:34am On Jan 23, 2017
I was thinking of starting cement distribution business too here in kano but it's even worst here I talked to one guy and he told me he'll give me the cement @2000# and the retail price of the cement is 2250 naira here I don't think any retailer is going to buy it from me because they're also buying it at 2000 at some other places
But in your case if she can get it at 2000 and sell it at 2300 thats 300×600 =180k I think it'll be worth it and don't forget that if the market price is let's say in your area 2300 she can sale it at 2250 people will come rushing
I hope it helps
Re: How Lucrative Is Cement Distribution Business? by tjaytb: 3:39pm On Jan 23, 2017
Jafsent:
I was thinking of starting cement distribution business too here in kano but it's even worst here I talked to one guy and he told me he'll give me the cement @2000# and the retail price of the cement is 2250 naira here I don't think any retailer is going to buy it from me because they're also buying it at 2000 at some other places
But in your case if she can get it at 2000 and sell it at 2300 thats 300×600 =180k I think it'll be worth it and don't forget that if the market price is let's say in your area 2300 she can sale it at 2250 people will come rushing
I hope it helps


Thanks and you've been greatly helpful. I really don't knownwhere she's getting it from but she got it at 2250 and the retail price here goes BTW 2350-2400. Now this is where the problem is, she is just a distributor not a retailer. So she'll have to resell at 2300 is the retailer is going to make any gain at all. My worry now is, at that rate she's making just 50naira on each bag. That's like 50*60 on one trailer. 30k on an investnent of over a million plus.

Well, since it's everywhere then I can only advice her to switch business after selling out on her first distribution. Thanks sir. I honestly do appreciate

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