How to launch your own cement depot in Nigeria
If you have been planning on starting a cement depot in Nigeria, then there are some basic requirements you need to have for the smooth running of the business.
In Nigeria, a famous company produces cement named Dangote cement.
The company has branches in every state, which is one of the reasons the business might be competitive if you plan on going into the business.
There are other people too who are already in the business.
I will be explaining the different requirements you need before starting your cement depot to ensure you make great sales.
It isn’t just about storing a lot of cement in your depot but are you making great sales.
The cement company is even looking for more resellers, so you shouldn’t be worried about starting a cement depot.
1. A Good Location.
If you want to make more sales from your cement depot, then you should locate your depot in a good location.
It doesn’t need to be in the primary market, but it should be in a location where many people pass daily.
Some would want to know the price of a bag of cement.
An advantage is that the price is generally permanently fixed, so even if you name a cost to a client, the person wouldn’t be able to price it because the person knows that if they go to another depot, that is the same price would sell it.
A good location is significant because people who don’t know where to buy cement would locate your depot quickly.
There are some special locations, like industrial areas are good locations to sell your cement.
2. Transportation System.
You must have a transport system that would transport cement that customers may buy in large quantities even if they have to pay additional fees.
It could be a small truck that would convey a large quantity of cement.
Some customers don’t like the stress of looking for a truck to hire, so they prefer buying from a cement depot with a sound transportation system.
You could also use that as an advantage to make more profits by charging them additionally for the transportation.
3. Solid and hardworking staff.
Loading and off-loading cement is a heavy task, and it requires a lot of workforces.
As the owner of the cement depot, you can’t do it yourself, so you need to hire robust and hardworking staffs that you would be paid either weekly or monthly.
They could also serve other purposes like arranging the bag of types of cement in the depot.
Make sure you don’t delay their payment so as to encourage them to do their work diligently.
4. Reach out to construction companies.
This is a fundamental way of improving your sales.
Even if you have three to five construction companies who patronize you constantly, then you are good to go.
Construction companies always require a large quantity of cement for any construction project, and most of them usually go directly to the company producing cement to purchase it.
But if you contact each of the companies and promise to give them free transportation, they would have no choice but always to buy cement from your depot.
You also need to contact some bricklayers who do menial work, they also always buy cement, you could also give them a discount.
5. Obtain necessary permits and licenses.
Obtain the necessary permits and licenses from local and state authorities to operate your cement depot legally. This would help to avoid any type of hinderance or disturbance along the way.
6. Build or purchase storage facilities.
Build or purchase storage facilities to store your cement inventory. The storage facilities should be secure and weather-resistant to protect your inventory and machines.
7. Build relationships with suppliers.
Build relationships with cement suppliers to ensure a steady supply of cement inventory for your depot. This would ensure fast and easy running of your cement depot.
The requirements I explained above are the basic ones you need before starting a cement depot in Nigeria.
The business is a straightforward one and doesn’t require too much stress.