Ibime:


Dangote know why he ceded that part of operation. I wonder if it's the Insurance companies bearing the cost of all these burnt trucks, accidents and wear and tear from Nigerian roads

Trucking business is something I actually want to do when I retire from 9 to 5. It's a good business for an accountant to do, because all the revenue and cost elements are fairly predictable within Western setting. Naija setting na anything goes.

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

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.

Ibime:


Dangote know why he ceded that part of operation. I wonder if it's the Insurance companies bearing the cost of all these burnt trucks, accidents and wear and tear from Nigerian roads

larride:


Let’s wait for Prosper to tell us the factory price of Dangote in comparison to Lafarge and BUA.

Ibime:


Dangote know why he ceded that part of operation. I wonder if it's the Insurance companies bearing the cost of all these burnt trucks, accidents and wear and tear from Nigerian roads

Trucking business is something I actually want to do when I retire from 9 to 5. It's a good business for an accountant to do, because all the revenue and cost elements are fairly predictable within Western setting. Naija setting na anything goes.

liveLongNprospa:

I know lafarge sells to wholesalers for 4400 for supaset and 4300 classic.
Now those wholesalers sell at retail by adding at most 500 naira to that price.

Lafarge always ensures that the price difference between them and Dangote isn't more than 500 at most.
And right now Dangote retail cement price is 4700 in delta state.
Meaning the company price is around 4200-4500 if buying from Dangote gan.


So I dunno where he said they make 50 percent from.
The cement business profit only fully shows when you are a wholesaler and you have to sell alot of cement to see profit that is reasonable.
The trucks used to deliver the cement to wholesalers are usually free or factored into the price given (someone can correct me here).

50% of a minimum price of 4000 is 2000 naira. Make baba stop am abeg😂😂

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

izzou:


That 50% is not true.

The person i know told me the profit on one trailer is about 350k

The major advantage of the business is that it sells fast, especially if you are in a good location.

You fit sell one trailer in one week sef

larride:


Shey him no get any other business wey Dey bring in money for him again?

liveLongNprospa:

Yeah I know its not coz that time I dey follow our marketers talk and them dey clear me how e dey be.

Dangote trucks dey actually act as depot so that it will be easier for customers to even get close to wholesale price. Some of those trucks you see with cement wey dey parked somewhere just dey chill for anybody wey go like buy.

Lafarge had no answer to that initially but they ramped up marketing drive to an aggressive level and gave their wholesalers incentives like giving out awards and gifts like brand new jeeps. Omo wholesalers dey very competitive sha.


This was the same thing they did to their transporters too. Best transport gets a 5star award. TSL and BHN dey drag.

I wonder how BHN handled the news of lafarge opening their own driving school sef 😂
The marketers nor dey ever be like who get money. E get one woman wey dey casually order 100-200 million worth of cement and she dey use Keke because she dey fear kidnap😂😂😂

Which of the trailers? 40ft or 20ft?

izzou:


600 bags should be 40ft

600 × 600

liveLongNprospa:

Yeah that's 40ft..
Is it that easy to sell ? unless you are a known wholesaler

larride:


Which company wan compete with them? 😂

larride:


Which company wan compete with them? 😂

BlueRayDick:




Na operation compete and die. U can't even match them on the money they spend on adverts, marketing and business promotion.

If indomie was a small brand, they would've died long time ago from negative publicity and incidents in the past when it was alleged some people ate indomie and died. But those guys know how to control negative press and still remain best seller noodles till date. I duff my hat for those guys running the group o.

Ibime:


Dangote know why he ceded that part of operation. I wonder if it's the Insurance companies bearing the cost of all these burnt trucks, accidents and wear and tear from Nigerian roads

Trucking business is something I actually want to do when I retire from 9 to 5. It's a good business for an accountant to do, because all the revenue and cost elements are fairly predictable within Western setting. Naija setting na anything goes.

BlueRayDick:


If u will do trucking business in Nigeria, u need to put some things in place to even think of breaking even. U will need to have ur own auto repairs workshop where u will employ mechanics, panel beaters and other auto technician who will be paid salaries to work on the vehicles either for general servicing or repairs after accident. That way, u will cut a lot of cost which independent mechanic/repairers will charge u.

You need to be friends with road safety and other security agents along the axis where u trucks will be plying if not, na everyday u go dey pay fine to bail ur trucks.

Omo, to do business in Nigeria ehn , no be small thing o.

liveLongNprospa:

I know lafarge sells to wholesalers for 4400 for supaset and 4300 classic.
Now those wholesalers sell at retail by adding at most 500 naira to that price.

Lafarge always ensures that the price difference between them and Dangote isn't more than 500 at most.
And right now Dangote retail cement price is 4700 in delta state.
Meaning the company price is around 4200-4500 if buying from Dangote gan.


So I dunno where he said they make 50 percent from.
The cement business profit only fully shows when you are a wholesaler and you have to sell alot of cement to see profit that is reasonable.
The trucks used to deliver the cement to wholesalers are usually free or factored into the price given (someone can correct me here).

50% of a minimum price of 4000 is 2000 naira. Make baba stop am abeg😂😂

liveLongNprospa:


You need a large land for truck park.
Like the land gats big die.
Also you need to pay for a premium tracking device that can tell you about diesel consumption, when the tracker was disabled, hours of service, speed, harsh breaking and acceleration, free fall. This thing cost gan.

Lmao omo these companies dey try sha and again pray that God will help you touch the heart of your drivers and fleet managers😭

BlueRayDick:



Nobody gives anybody any truck o. There's a company called Dangote Sinotruk West Africa limited which is a joint venture between Dangote Industries Ltd & Sinotruk(The chinese truck manfucaturer). The company assembles those sinotruk here in Nigeria and any wholesaler that holds his cash will walk up to them and buy in order to register as one of the numerous transporters under Dangote. Dagote owns like 65% of the company while the chinese own 35%.

They even sell the trucks to outsiders sef. Dangote na proper businessman o, not father christmas

BlueRayDick:


Those drivers can be very wicked, dem fit drive ur truck across border if dem wan wicked u

BlueRayDick:


If u will do trucking business in Nigeria, u need to put some things in place to even think of breaking even. U will need to have ur own auto repairs workshop where u will employ mechanics, panel beaters and other auto technician who will be paid salaries to work on the vehicles either for general servicing or repairs after accident. That way, u will cut a lot of cost which independent mechanic/repairers will charge u.

You need to be friends with road safety and other security agents along the axis where u trucks will be plying if not, na everyday u go dey pay fine to bail ur trucks.

Omo, to do business in Nigeria ehn , no be small thing o.

liveLongNprospa:


Noo.. When I say free, I'm saying the wholesalers are not paying for those trucks that deliver cement to them.
Or even if they pay, the price is already added to the money paid for cement. I'm using lafarge maybe Dangote is different there

Ibime:


Na brave guys dey do that business for Naija. It's a tight margin business but predictable. However in a setting where you can lose 1 in 10 trucks to Nigerian roads be it accident, vigilantes, bad roads, poor drivers, kidnappers, not to mention drivers probably siphoning diesel, I wonder how they plan out their cash flow and payback periods on trucks. Too many variables dey Naija setting

Ibime:


Na brave guys dey do that business for Naija. It's a tight margin business but predictable. However in a setting where you can lose 1 in 10 trucks to Nigerian roads be it accident, vigilantes, bad roads, poor drivers, kidnappers, not to mention drivers probably siphoning diesel, I wonder how they plan out their cash flow and payback periods on trucks. Too many variables dey Naija setting

Itsrm:


You can mitigate most of this by comprehensive insurance with excess buyback. I doubt anyone will be stupid enough to put a truck on Naija roads without insurance.

Ibime:


Dangote know why he ceded that part of operation. I wonder if it's the Insurance companies bearing the cost of all these burnt trucks, accidents and wear and tear from Nigerian roads.

liveLongNprospa:

I know lafarge sells to wholesalers for 4400 for supaset and 4300 classic.
Now those wholesalers sell at retail by adding at most 500 naira to that price.

Lafarge always ensures that the price difference between them and Dangote isn't more than 500 at most.
And right now Dangote retail cement price is 4700 in delta state.
Meaning the company price is around 4200-4500 if buying from Dangote gan.


So I dunno where he said they make 50 percent from.
The cement business profit only fully shows when you are a wholesaler and you have to sell alot of cement to see profit that is reasonable.
The trucks used to deliver the cement to wholesalers are usually free or factored into the price given (someone can correct me here).

50% of a minimum price of 4000 is 2000 naira. Make baba stop am abeg😂😂

larride:


Well I wish I can get my hands on that interview, whenever I come across that interview again, I will surely drop it here.

BlueRayDick:


Insurance can only take care of the vehicle, I think what he's saying is other factors like kidnapping, driver running away with goods,drivers siphoning diesel etc. Those other factors u don't have control over it and they will surely affect ur cashflow and payback period for the loans u accessed from the banks