₦airaland Forum

Blackkie:
Kindly go through this:

Goldmine In Egg Distribution

Dealership on Egg is one of the most neglected businesses in Nigeria. Irrespective of its high earning potentials, it is grossly left in the hands of few non-entrepreneurial innovative group. Egg is one of the products listed among the ''Mallam'' economy. Mallam economy refers to any products sold by thousands of road side vendors populated mostly by Hausa security men.

Take a flashback into the small shops scattered across the nation and many of the supermarkets around town, go an extra mile into the shops managed by Mallams, do not exclude the numerous petty traders around you - you must have found few crates of eggs among their wares. There is something about any product that is sold by a greater percentage of business outlets, the demand is at topmost position. However, townships are the hottest places to earn income in the distribution.

Here is why Egg distribution is a goldmine:- imported Eggs are not found in Nigeria, thus all that is consumed here is locally produced. There is only one source of Egg-the hen, their ability to lay eggs is grossly limited. The farms producing these Eggs are far away from the major cities. In Lagos where the consumption is highest in Nigeria, there are no farms in or near the densely populated areas-thus those bringing it to the retailers and end users are engaged in businesses that has a natural elasticity. For the Lagos market, majority of the farms are located at Epe, Ikorodu, Aja and Agbara while the neighboring towns in Ogun state are host to poultry farms of various capacities all emptying into Lagos.
The gap between the producer and retailers being wide, it is left open for distributors to take advantage of. Many poultry farm owners are not involved in merchandising while the retailers are always at home in their business premises waiting for the distributors to bring the products to their sales outlet.

Recently, I went around Lagos state in search of Eggs in commercial quantity. Many farms i visited do not have the capacity to produce large quantity of Eggs daily. From my personal findings, the demand is greater than the supply. This accounts for the Cash and Carry status in Egg transactions. It is mind blowing to identify a product in Nigeria that its buyers pay instantly at the point of supply and Egg is it. This offers the product a near scarce tag. There is a new trend in sourcing Eggs today. Many producers offer crates of unsorted eggs to the bulk buyers. And that's it.

I also meet a lot of people who are engaged in Egg distribution. They hardly satisfy their client base when lots of other logistics are taken into consideration. However as it is a product with high demand, the seemingly small margin accruing from a crate sold evolves into something tangible when it is embarked on large scale. Many people are involved in the distribution operating with their own idea and serving their own niche market.

The story of a young woman, a mother of three painted an interesting picture. She does both retailing and distribution of Egg in a suburb in Surulere Lagos. She operates from her house with a capital of N120,000.00 (one hundred and twenty thousand naira). For her, her supplier(s) brings an average of 200 crates for her twice weekly. Her business area are those around her vicinity only for the fact that is where her leg work can get her to. She makes on the average N30 (thirty naira) per crate sold.

Lets do a little calculation, her weekly sales is 400 crates weekly at a retail profit of N30. This she does for the four weeks each month. 400 crates x N30 = N12,000.00 So she makes a profit of N12,000.00 weekly. Now, N12,000.00 x 4 = N48,000.00 thus, from an investment of N120,000.00, she makes a profit of N48,000.00 monthly. The Return On Investment is quite high and amazing. According to the lady, the business use to be quite lucrative years ago when she sells to retailers at a profit margin of N80-N100 about three years ago although the supply was quite meager and irregular.

This is not all there is. I equally meet the sales force of Animal Care, the proud owners of Funtuna branded eggs and they were awesome. With their branded delivery van and packaged eggs, they are serving a niche. The bulk sellers who own large shops cannot be swept aside, they source from different farms, bring it to central sales point and serve their clients from their shops. There are also lots of young school leavers who are adding strength to the business by serving many retail shops on daily bases with their little cars.

For many who wants to venture into the business, there are many uncharted areas. Many farms are in remote areas and they have a great need for distributors or bulk buyers. Your ability to locate them creates the much desired business for you. You will have an advantage if you will be a bit strategic even when your capital is small. For example, if you have a vehicle and about N200,000.00 {two hundred thousand naira} only, you can make a mark. All you will do is to move in deeper into the hinterlands, buy the quantity of eggs you want and sell them in the towns. Vis this approach, you will be comfortable to dispose each crate of egg above the profit price of N70.00

The goldmine today in the business is occasioned by the increasing population in major cities. The bakers are consuming it at an alarming rate-they must maintain the quality of their confectioneries to remain in business. Three group of egg consumers that baffled me in my findings were those preparing Indomie Noddles by the roadsides especially near busy bus stops at night and over crowded streets, the Togo women popularly referred to "Agonyi'' women and toast bread makers seen around various private and public offices. Any person dealing with these people as their suppliers are bound to smile to banks daily. These class of egg clients are mostly found in densely populated neighborhood in the cities.

With an investment of N300,000.00 (three hundred thousand) you can become a visible player in egg distribution. You can register with farms like Obasanjo Farms or Animal Care and source your products from them. Your most difficult job is to hit the streets and sign up retailers, end users or cottage industries who will be your preferred clients and the business is up and running. With N300,000.00 you can source about 400 crates of Egg twice weekly. At the profit margin of N30 per crate sold, that will offer you a whooping N96,000.00 profit monthly with lots of room for increasing your bottom line.

Egg distribution may be your gateway to a steady source of income or even an extra source. The choice is yours.

From Start-Ups Business School - Researcher and business writers.

Blackkie:
We are back with good news!

A farm has signed a sales offer to ''us'' for 1000 crates weekly.
We shall be doing a test run by first week of November 2015. If you are in Surulere and its environs and buying from us will be a good business for you, kindly signify.

500 crates is up for grabs, least someone can buy is 50 crates.

Fhemmmy:
Mention prices too.

Amadaz:
he said u both stay around the same area or something. u both met on tuesday.

Amadaz:
Well, my bro has told me the outcome of his inspection meeting with you. ur price doesnt match with my budget.

Amadaz:
post the rear and engine pics together with the doors and trunk pls

keymove:
355K cash ready.

Amadaz:
Abeg wia dis motor dey?