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Tips To Start Cement Warehouse Distribution Business

Tips To Start Cement Warehouse Distribution Business. Cement is a prominent building material in Nigeria, thus this kind of company is fairly widespread here as well. Although there is a lot of competition, if you’re in a good position, you may still make a profit. Here are the things you need to know about the business.

Tips To Start Cement Warehouse Distribution Business

Introduction

In terms of construction materials, cement is one of the simplest and most lucrative businesses anybody can go into. Cement company owners in Nigeria have been hunting for information on how to get started, but have come up empty-handed. Here, I’ll try to describe the cement industry as thoroughly as I can to the best of my ability. Anyone may establish a cement company in Nigeria without going through so much pain.

As a case study, we’ll look at Dangote Cement Supply to see the merits and profit potential of the cement industry before moving on to the how-to steps. As I previously said, this is a sure company in which everything looks nearly certain, and I can promise you that those involved are generating significant profits. There is a minimum purchase of one trailer load (600 50kg bags) of Dangote cement, which costs N780k+, to get a bag of Dangote cement from the mill.

If you sell 600 bags at N1600 each, your earnings from a single trailer trip will be 300 x 600 = N180,000. You might expect to take home N100,000 every trip after deducting the expense of transportation. Become a Dangote distributor now, and you’ll have access to one of West Africa’s largest cement producers. You must be very certain that being a Dangote distributor would result in a financial gain on your part.

It’s OK for you to have scepticism. Cement is in great demand in Africa, but that’s not all. Within a year of being a Dangote cement distributor in Africa, you might earn a sizable amount of money.

See also: Starting Agro-processing business

Starting Cement Distribution Business

1. Distributor 

To become a Dangote Cement Distributor, you must meet a few basic requirements. The Dangote Cement Company is looking for reputable distributors from all across Nigeria to guarantee that their cement is available to everyone in Nigeria. Credible people are those who have a business registered with the Corporate Affairs Commission of Nigeria and are thus the owners of a legitimate firm. To be eligible to become a Dangote distributor, you must complete the following steps.

The process of registering a business may be done in a matter of minutes and costs just a few dollars. If you opt to make it yourself, it would cost you around N50,000. The next step is to register a corporate account in your company’s name at any Nigerian bank. To open a business account in Nigeria and avoid the risk of money laundering, you must first get permission from the EFCC’s Special Control Unit against Money Laundering (SCUMIL).

To receive a Taxpayer Identification Number (TIN), you must travel to the Federal Inland Revenue Service (FIRS).

2. Retailers

There is no need for a store to go through the lengthy application procedure. You’re ready to travel as soon as you get the money. Purchase your cement from a nearby depot and go to work selling it. Profits range from N100 to N200 per bag of cement, which is a fantastic lot given that you do nothing more than walk out and carry your cement.

In order for your store to succeed, it must be located on a busy route or a newly developed area where construction is taking place in large numbers.
Many individuals, particularly those who live along the highway, operate as shopkeepers even if they don’t have a storefront. It’s as simple as adding a few blocks and cement to raise the ground a little, putting up a few cans and wood to fill them.

If the area is unprotected, you might erect an iron barrier around your cement to deter intruders at night. When a single buyer orders hundreds of bays, you don’t even have to work a day in your life to make money.

In Nigeria, why should I start cement business?

In Nigeria, there are a few good reasons to get involved in this business. The population of the nation is increasing at an exponential rate. In order to keep up with the expanding population, we will need to build even more buildings. Cement, the primary ingredient in building materials in this part of the world, is in high demand as more structures go up.

It is now being considered by the federal government of the nation to utilise cement to build roadways. Because of this, the demand for cement will soar, as any savvy businessperson can foresee. As long as you have the money to acquire it, you may easily get your hands on the thing. The world’s largest cement company, Dangote, is based in Nigeria and provides a variety of assistance and monetary incentives to its tens of thousands of customers on a regular basis.

See also: How to start a business in Nigeria (Profitable business)

Nigerian Cement Business Start-up Tips

1. Acquire the resources you need

Whether conducting business in Nigeria or somewhere else, essential infrastructure is required for the cement industry. As soon as possible, make sure you have a place to keep the cement you’ll be purchasing from a cement provider. You need a truck capable of transporting cement from the producer or source supplier to your storage facility or to the end-user. You can rent a trailer if you can’t afford one of your own. If you run a tiny business, a modest vehicle will suffice. Tarpaulins are also required to protect the cement from the elements while it is being transported.

2. Buying and selling cement in a Nigerian market

Become a store if you cannot afford to be a major distributor. You may just go to a neighbouring wholesale depot and purchase from them. They may be able to offer you a discount if they know that you are selling it.

3. Supplying cement to customers

A large distributor’s principal customer in the store. Take a look around your neighbourhood and identify these objects. Offer a discount to entice customers to make a purchase from you if you can persuade them In addition, keep an eye out for those that specialise in large-scale construction projects, such as civil engineers and building builders. They only ever purchase large quantities of cement.

Keep an eye out for construction workers in the area and spread the message to them on behalf of the shop. Even construction workers may put you in touch with their supervisors. Set up a business relationship with real estate brokers and suppliers of construction materials.

See also: Small business ideas to start in Nigeria with low capital 

Conclusion

There are a number of excellent cement producers in the United States that you may choose from. Provide us with a thorough description of your firm and the distributorship you would like to apply for and we would gladly post it on our website if you believe your application procedure is simpler.


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