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  • Dangote, How To Take A Bite Of His Wealth?

    Dangote, How To Take A Bite Of His Wealth

    Do you know, it is not difficult to take your share of Dangte’s wealth?
    Dangote is the wealthiest Nigerian with investment in Gas and oil, Manufacturing and importation. There is hardly any family which does not patronize Dangote products in a day. If you do not use his salt, your bakery will use his sugar or your child will eat his noodles or your car fills up at one of his numerous fuel station scattered all over the country.

    But by far the industry where Dangote has the biggest influence in the economy is the cement industry.Dangote Cement is Nigeria’s leading cement producer with three plants in Nigeria and plans to expand in 13 other African countries.
    One of the easiest ways to take a bite at this mega rich man is to sell his cement.
    All cements in Nigeria perform well so there is no problem of quality. If anything, Dangote cement can claim to be the best, and best of all, you will still make a profit selling it at #50 lower than the nearest competitor, elephant Cement.
    Here in Ibadan when Elephant goes for #1700, Dangote goes for #1650. This makes it move faster and you cannot believe this, there are many towns where Dangote has no presence,

    I just made a proposal for a client in one of the big towns and believe me there is only one person selling Dangote cement and the guy has not gotten the financial muscle to push the cement.
    Distributor
    Honestly, if you want to be a major distributor of Dangote cement, you will need to buy two trucks and this does not come cheap.
    The minimum order from Dangote factory In Kogi state is 2 trucks .

    The company’s truck delivers at the shop at N1502 per bag.
    Landing cost of 2 trucks= =N (1502x900x2) ==N2, 703,600
    Offloading and stacking N15/bag==N (15×1800) ==27000
    TOTAL== N2, 730,600

    So you see you need about M3 to be a distributor. But do not lose hope you van enter at a smaller level.

    Cement Factory
    First, you can purchase a lesser quantity from their depots scattered all over the country.
    Second you can liaise with existing distributors and take stock from them.
    In business you need integrity. The moment you have this and can demonstrate this you can get stock from people. You pay as you sell.
    The difference you will make is that you will be prospecting for customers as against sitting down in the shop waiting for customers as most cement dealers do.

    Check out Profitable Small &Medium Businesses For Nigerians

    Stacked Cement
    Marketing
    Cement is self advertising and this is a big advantage but that is not to say we will not have our marketing strategies.
    The major difference between our strategies and others is that unlike others who wait for customers, we will go out looking for them. When we get then we treat them like kings which they are and by so doing talk well about us and make repeat purchases. This shall be a big racketing plank on which our business stands and shall not be compromised.
    Most cement dealers just open shop and wait for the customers to stroll in. No, we will not wait, we will run after them.
    Our main marketing strategy will be by personal contact and once a prospect buys you hold him tight with good personal relationship and after sales service.

    Direct Selling…
    Ø Meeting With Bricklayers Association. We will have contacts with bricklayers association to push this brand. The quality is already taken for granted as most cement behave similarly. We push the price advantage and the supporting auxiliaries such as prompt delivery and superb customer service.
    Ø Retailers. Apart from selling to users directly we expect to break bulk by selling to retailers. We will get in touch with them to take on Dangote cement. In fact with the builders asking for Dangote brand, the retailers will have to stock from us as the only major distributor in town. This is a push-on and pull- off strategy.

    Ø Sites. It is not possible to reach all the bricklayers, so visiting the sites will complement the two strategies. Alhaji DangoteVisiting building sites is a veritable way of selling cement. And happily this is easy as most new buildings are on the outskirts of town. A random visit will reveal where new structure is coming up. We will market to both the owners and the builders. If a building has an architect, the better. The architect knows there is no difference between cements except the branding.

    Ø Contractors. We will have our ears on the ground for government contracts and approach such contractors. This could shoot up our sales. Some of them order in trailer loads. Caveat Emptor. No credit Sale. All sales to be backed by cash.

    Profitability.
    Simple to prove.
    Selling Price N1650
    Landing cost N1502
    Gross profit N148
    Removing the overheads you must make N50 a bag.
    Go ahead and be a Dangote Cement dealer and take a chunk of his million

    Check out Profitable Small &Medium Businesses For Nigerians

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    Otunba Jide omiyale

    Otunba Jide omiyale

    Chief Editor at Naija Biz Ideas
    I am Otunba Jide Omiyale. I run this site with other professionals,including Accountants, Lawyers, Commercial Bankers and Investment Bankers
    Otunba Jide omiyale

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