BlueRayDick:


I disagree with this position in bold. Dangote cement being priced higher than other brands might be due to a lot of factors other than distributor's margin. For example it could be due to branding and how acceptable the brand is ; It could be due to the fact that Dangote is a market leader like indomie in the noodles market(which makes indomie more expensive than other brands), It could even be due to the marketing/advertising effort of his business managers who have imprinted it in people's mind that Dangote cement is a better brand such that u are willing to buy Dangote's cement cos u feel safer due the the quality product they promise in their adverts and marketing effort.

I honestly don't think wholesalers just price Dangote cement higher because they feel like doing so. Whatever the case may be, Dangote the man surely knows about it.

Melvyn11:
How many people the chop indomie for Nigeria may those guys dey generate 1 billion dollars not even Naira annually.

Melvyn11:
How many people the chop indomie for Nigeria may those guys dey generate 1 billion dollars not even Naira annually.

izzou:


Those guys are not just doing Indomie

They are into Logistics. They own MCPL BHN; one of the largest truck fleets in Nigeria, if not West Africa

They have a flour mill too outside lagos, and a groundnut oil processing mill.

Those guys dey chop money outside Indomie sef

GloriousGbola:


basically they have done the same thing bezos did with AWS. by solving a problem related to their business, they have become dominant in providing that solution across the board

Melvyn11:

He sold his noodles to Dufil prima. At present no food brand can rival or conquer dufil foods I think it's impossible. These guys know Nigeria more than we do. See what they did with power oil, no wonder they keep investing more in the country.

iamoyindamola:

Dufil even created another competitor out of indomie(minimie) to pursue other brands

iamoyindamola:

Dufil even created another competitor out of indomie(minimie) to pursue other brands

GloriousGbola:


naija ehn. same thing dstv did with GoTV

it is sad sha. there are a lot of opportunities here - but somehow, we do not have our shit together. maybe corruption, maybe impatience, maybe an inability to think beyond immediate chop- so you see different cadres of asians and south africans cleaning up in our markets.

GloriousGbola:


naija ehn. same thing dstv did with GoTV

it is sad sha. there are a lot of opportunities here - but somehow, we do not have our shit together. maybe corruption, maybe impatience, maybe an inability to think beyond immediate chop- so you see different cadres of asians and south africans cleaning up in our markets.

BlueRayDick:


Can u please share the interview u are referring to here ?

I doubt Dangote is saying the truth if he indeed claimed wholsesalers put almost 50% margin on his products when it gets to their hands.

For starters I know Dangote stopped carrying his products a long time ago. He already hedged that risk by allowing distributors own trucks registered under his franchise to carry products from his depot in Obajana to any part of the country . Most times when those trucks have accidents and people burn them down in the hope of hurting Dangote’s business , they don’t know they are destroying the business of their kinsmen who own the trucks and have it registered under Dangote’s franchise .

For example the risk involved in transporting products from Obajana to Kebbi state is transferred to the wholesaler who is carrying the product ; risks such as paying all security men on the road , escaping robbers in the road and even risk of having ur truck burnt down when an untoward event happens .

I remember a case in 2021 when one truck killed an okada man in Obajana , the youth of the town mobilized and burnt all the trucks on queue waiting to load at the depot . ( These trucks belong to individual businessmen who keyed into Dangote’s logistics franchise and they had to beat the risk on behalf of Dangote ).

I think Dangote is being economical with the truth if he’s claiming wholesalers put as much as 50% margin on his products ex-factory works . If u have a sit-down talk with the wholesalers, u will be surprised those margins aren’t that high as Dangote make them seem .

Lastly I found it very very hard to believe that an entrepreneur will assemble all the factors of production to come up with a product offering to the consumers only to have wholesalers making 50% margin on the final product . It won’t even happen in the most capitalist economies my brother .

BlueRayDick:


It is because the Asians have studied how corrupt we are as a people and have mastered our systems even better than us. They know the palms to grease to get licenses and permits out the quickest possible time, they know how to flatter Nigerians in government to have their way and they know how to access credit facilities from local banks and still turn profit out of it(They do this mostly by underpaying skilled workers, work unskilled labourers off their socks and circumvent a lot of local legislations which the government is not enforcing)

Ibime:


A major cost of cement is in transportation. Add in challenges of transporting goods on Nigerian highways and 50% seems fair. A general rule of thumb in retail is that retail price is often 3 times production price. If Dangote produces for N1 and sells for N2, while retail sells for N2, that's your 50% on top Dangote sale price

GloriousGbola:


i did my nysc in aluminum rolling mills ota. in 2002. run by indians. one day one of the senior engineers had a fight with one of the indian bosses and came back telling us he would leave, "i have 100k saved. i don't have to take this nonsense." i no even think am. as i finish nysc i comot straight. a complete waste of a year.

Ibime:


A major cost of cement is in transportation. Add in challenges of transporting goods on Nigerian highways and 50% seems fair. A general rule of thumb in retail is that retail price is often 3 times production price. If Dangote produces for N1 and sells for N2, while retail sells for N2, that's your 50% on top Dangote sale price

BlueRayDick:


Those guys no send person at all. That's why some Nigerians use them to manage their businesses, I think Dangote's MD is even an Indian/Pakistani.

GloriousGbola:


naija ehn. same thing dstv did with GoTV

it is sad sha. there are a lot of opportunities here - but somehow, we do not have our shit together. maybe corruption, maybe impatience, maybe an inability to think beyond immediate chop- so you see different cadres of asians and south africans cleaning up in our markets.

izzou:


They have Minimie noodles

Na still dem get am

iamoyindamola:

Dufil even created another competitor out of indomie(minimie) to pursue other brands

hopefulLandlord:


LFTZ, Lekki Free Trade Zone is owned by Tolaram group which indomie, power pasta, power oil, Hypo bleach, Nobel Carpets, best choice supermarkets (dunno if they still exist), minimie chin chin etc are all under

GloriousGbola:


naija ehn. same thing dstv did with GoTV

iamoyindamola:
I don't understand this but indomie and minimie are produced by dufil 2 noodles under the same company

hopefulLandlord:


LFTZ, Lekki Free Trade Zone is owned by Tolaram group which indomie, power pasta, power oil, Hypo bleach, Nobel Carpets, best choice supermarkets (dunno if they still exist), minimie chin chin etc are all under

iamoyindamola:

I don't understand this but indomie and minimie are produced by dufil
2 noodles under the same company

GloriousGbola:


it is called market segmentation

samsung was making only the galaxy s phones. then they saw that a lot of people were buying lower grade phones, they introduced the A line. so you can also buy a galaxy phone, but a budget one.

it is a business strategy. same reaso you have a WIDE range of toyotas. and why toyota, nissan, and honda created the lexus , infiniti and acura lines.

Melvyn11:

Tolaram group are half owners of Dufil.

hopefulLandlord:


It took me over 2 decades of living to know that Three Crown's milk and Peak Milk were made by the same company. up till that moment I thought they were competitors and for a long time they were the main brands of liquid tin milk in Nigeria which meant they were running a monopoly while making people like me assume otherwise

hopefulLandlord:


It took me over 2 decades of living to know that Three Crown's milk and Peak Milk were made by the same company. up till that moment I thought they were competitors and for a long time they were the main brands of liquid tin milk in Nigeria which meant they were running a monopoly while making people like me assume otherwise

iamoyindamola:

I don't understand this but indomie and minimie are produced by dufil
2 noodles under the same company

larride:


😂😂😂😂

BlueRayDick:


Tolaram group owns Dufil, I think that's what he's trying to tell u. Tolaram group has their hands in almost every consumer goods in Nigeria. Products like Indomie, minimie, milo, golden morn, bournvita, tom tom, power oil, huggies, hypo, colgate toothpaste, kellogs cornflakes, etc are produced in Nigeria by subsidiaries of Tolaram group.

BlueRayDick:


Yeah, but majority of the 50% margin are costs Dangote would've borne had he not ceded transportation/logistics out to the same wholesalers. If Dangote did say that, its more like he's setting the wholesalers up for dragging on top money wey dem no chop.