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  • Why Commodity Brokers Are Millionaires And How You Can Join In

    Why Commodity Brokers Are Millionaires And How You Can Join In

    As  you are reading this,  there  is  a  man  somewhere  looking  for  a  D8 caterpillar to buy and there is another one having one to sell. Find the two, connect them together, conclude the business and take your share from both sides. This is the biz local people call commission agent or commodity brokerage.

    There are scraps in companies, secretariats, local, state and federal, Teaching hospitals, Research institutes, Universities etc. This business includes things as small as typewriters to something as big as 5000kva generator.  I  know  a  couple  of  guys  in  this  line  who  are  illiterate millionaires.

    The problem with educated people as I said elsewhere is that many lucrative businesses are left to illiterates and this is one of them. Ironically, it  is  an  educated man  selling  such products to  the  barely literate people cheap.

    In almost all the places I mentioned, if an Engineer is not heading the selling team, it will be an Accountant or a Materials Manager.

    There was a  scrap deal  some people I know made  with PHCN that fetched the least among them two million Naira after refurbishing and selling the materials. All over the country are scraps in PHCN offices, Water corporations, Transport companies and so on.

    More often than not, those selling either do not know the value of what they are selling or simply do not care. They come out at ridiculously low prices that buyers cannot lose.

    To do well, you need connections with such organisations. In some cases, you may have to register but once in, it is a matter of time before you get something  to  buy.

    To  move  faster  in  the  business  you  will  have  to befriend auctioneers if you cannot get the licence yourself.

    This will give you an advantage over others. You must have eyes and mind for this business  and  be  passionate  about  it.  One  single  deal  can  make  you forever. Walk with your eyes open. Often, owners of such materials and equipment have even forgotten that they are there. You may be the one to awaken them to selling it and make money for both sides.

    MARKETING. Pretty business card and contacts with a lot of leg work. For a start, you may not need an office as you do not need to carry stock. A deal may give you a good office for people to visit you. If you have large stock, you may need to use the newspapers.

    When using papers, be careful you put your advert in the right place. Adverts burn money fast if not placed appropriately and properly.

    CAVEAT. Be  careful.  Find  out  the  source  of  the  product  you  are buying. At times, people sell things which do not belong to them. There was a case of people buying a long broken down earthmover, which did not belong to the supposed owners. Caveat emptor.

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    Otunba

    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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