How to become a Power Oil sub distributor
Basically, being a power oil sub distributor involves getting your supplies directly from the distributors, and then distribute those products to various retailers around your target market, after adding a profit margin to those products. Running this type of business can be very lucrative and rewarding. So if you’re considering starting up a power oil distribution business; it’s quite easy to start, however there are a few points that you should consider before you start your power oil sub distributorship business in Nigeria.
This article is designed to walk you through the basic requirements on how to become a power oil sub distributor.
Get some training
When people hear about the profitability of sub distributorship business; they get carried away by the stories and feel they can just liberally go into the business. That is a wrong point of view, you just can’t afford to jump at eny business opportunity without first acquiring some basic skills and knowledge about the nitty gritty of the business. As simple as buying and selling may sound, there is a lot more to it, you first need to understand thoroughly before you become a power oil sub distributor. Reach out to more established and experienced businesses in the field and ask for advice and tips on his to startup and go about setting up your business. Source for a chosen power oil distributor around you from whom you can easily get as much necessary information that you need for your business. Distributors are always ready and available to put you through any basic must-have skills. All you need do is make yourself available, as there are so many business secrets you just have to know for you to be a successful power oil sub distributor.
Know your market and target customers
Even before you start sourcing for suppliers, you need to first conduct a market survey so as to understand your target market and customers. Before you start, you must first identify your customer base. You must be able to CLEARLY define your target market. Your main purpose for starting this business is to able to make profits from selling your products; well that sure won’t happen if you don’t have a market for your products. You could decide to sell to stores, retailers and big markets around your environment. Make sure that your products have a good demand in your target market, and also the profit margin on the products should be large enough to sustain your business in the long run and not just in the short term.
Investigate the sales figures of other power oil sub distributors around you; Are their sales increasing every year? It’s possible that the profit margin you earn on your products lower, still your average profit over the whole product line should be decent.
Sourcing for a distributor
Next, you want to source for a reliable power oil distributor around you. Look into the details. Make sure that they have a good reputation in the market and same with their products; the less complaints you get from your customers, the better for your business. Talk to other businesses who have dealt with them; they should be prompt when providing services. Depending on your location in Nigeria, there are so many distributors around you that you can easily get your power oil supplies from.
You can send a direct mail to firstname.lastname@example.org for more information regarding this.
It’s always better to source for a distributor closer to you so as to reduce transportation costs.
Registering your business
To gain credibility for your business, it is recommended that you register it with the Corporate Affairs Commission of Nigeria. This way you can easily establish customer trust in your business, and also have legal backing as a registered organization. The basic steps involved in registering your business is choosing and registering a business name, and then meeting with other requirements as stipulated by the Corporate Affairs Commission ( CAC). You can visit their official website www.cac.gov.ng for more information on how to register your business with them.
Acquiring a shop space
This will serve as your business base. It is very important that you have a store front or warehouse where you will be storing and moving your goods from. You have to make sure that you consider your peculiar business needs and priorities when deciding on the type of location for your business.
Consider the following tips when choosing a shop space for your business.
- Your suppliers/distributors should be nearby
- Businesses in the area complement yours e.g; supermarkets, big markets, hotels, restaurants etc
- The cost of rent or leasing property in the area should be relatively affordable and meet the needs of your business.
- It is a growing business hub with many opportunities both presently and in the near future.
Once this is settled, you won’t need to get a separate space for your office, you can simply dedicate a section of your store as an office space.
Getting a source of transportation
For you to be able to get your goods to your customers, you may have to source for some sort of transportation; you can either decide to buy a transportation van or simply opt for renting one. If you have enough money though, it is advisable you buy a truck rather than renting it, however, for a starter with limited funds, you can easily start out by renting a vehicle for transporting your goods. It’s always better to have your goods delivered to your customers rather than wait for them to come to you. So, to become successful at this business, you have to budget transportation costs fully and have it incorporated into your overhead expenses.
Know your competitors
As you start out, make sure that you know your competitors; that is, other power oil distributors and sub distributors around you.
Find out about their weak spots and come up with strategic ways to exploit them. Try to up your customer service, know the prices they offer and and start offering even lower prices or come up with value-added services.
You can easily become a sub distributor for power oil by buying a minimum of 100 cartons. Anytime you buy 100 cartons of power oil you get N9000 as a promo offer.
Dealer’s Arena is an online platform where different manufacturers products information is being provided giving opportunities to distributors and bulk buyers to purchase this products at wholesale prices. Our mission is to raise sub distributors for many products
We could be contacted via the following:
Email address: email@example.com
Phone: 09069236106, 08154522721
Our services include;
- Product information
- Product advertisement
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