Egg distribution business is another beautiful business to go into. The number of eggs consumed everyday in Nigeria keeps increasing and will continue this way because of our growing population. Egg is protein in nature that is one of the six classes of food. That means egg falls under the food chain. The market for egg is available in the greater part of the middle and low-class environment and high amongst the elites.
People going into egg distribution business is growing every day, you may be wondering is it not saturated already;? The truth is that there are so many mouths to feed and many areas yet to be covered your work is to discover such places. How many people are into fish business and many other foodstuff businesses are they not selling that’s what you should be asking yourself.
There are some businesses that can’t do without eggs example is the baking industry; you now see that you have a business at hand. Although this business is very risky because egg is very fragile and can easily bread at the slightest mistake but there are ways to curtail such mistakes. In this post you are going to learn the steps to take in other to succeed in your egg distribution business. But first of all, start the business then you will discover secrets in it.
HOW TO START EGG DISTRIBUTION BUSINESS
Before starting egg distribution business you have to decide how you are going to be selling, either as a wholesale distributor or a retailer it can be both. This is because each has different business approach.
Steps to take in starting egg distribution business.
CAPITAL
This is very important, you can source for capital from friends, family members, close persons etc. You don’t have to wait until the money is huge. With #50,000 egg distribution business can be started. At the same time you can also start without money but this will depend largely on the fact that you know the poultry farmer or can convince the person.
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There are poultry farmers who are far from the city centre and are seriously looking for people to dispose their eggs for them. I never knew of this until a friend of mine who is into poultry farming in Akwa Ibom State told me that he has dozens of egg piled up without buyers.
DRAW A BUSINESS PLAN
This will have to do with the way you want to run your egg distribution business. The strategy you will take to succeed in the business. Such as how to start; wholesale or retail, number of crates to start with and when to increase stock, getting buyers down as in how many people you sourced down , area of coverage etc. Egg business plan is as good as the business idea.
SOURCE FOR POULTRY FARMERS
It is very important to source for poultry farms down, where you can be getting regular supply. You have to factor distance into this; the farm doesn’t necessarily have to be too far from your egg business location because of the egg fragility. With short distance comes less risk while long distance has high risk. Fresh egg is what counts in egg business, if you keep supplying eggs that are almost about to spoil believe me, you will lose customers. But if you maintain the supply of fresh eggs customers will be waiting for you.
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There are big and small farmers who are looking for buyers locate and start buying from them. Also you can register with big farms although they may not be selling to you every week (it could be once every two weeks) but you can use the small farms to cover up the gap. Some give discount for bulk buying. In essence source for many poultry farms
SOURCE FOR BUYERS
Contact people in your area of interest that deals on egg and market your egg distribution business to them. Some of them already have suppliers but you can dislodge by your business approach. Offer them incentives; you can say when you keep buying from me I will give you one dozen of egg by the end of the month. Try and get at least 5 bulk consistent buyers to start with. Approach any body that comes to your mind; petty traders etc. whether half crate or one that is something. If 20 people buys from you in a day you know what that means.
WAREHOUSE/OUTLET
Rent a shop in a good location for your egg distribution business so that people can rush in to buy when they exhaust their eggs. The shop should be where you can store unsold eggs, you can buy in large quantities and store them in the ware house rather than going to poultry farms every day
MEANS OF TRANSPORTATION
Well, you can buy a car or convert your personal car for this business. But not having a car shouldn’t stop you from starting egg distribution business. Make arrangement with a taxi driver and pay him to carry your eggs from the farm to each distribution spot. That means you have to buy down and call the person to come pick you.
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You don’t have to pay for a whole day but the hours you use. Negotiate in such a way you will have good profit still remaining at the end of the day. In all having your personal car will pay you better. Purchase a tokumbo car like Golf 3, for a start, #500,000 will take care of that.
TIPS
- Buy two types of crate; the big and the small sizes. When conveying the eggs from a long distance farm use the big crate it will give the egg space as such damage will be minimised. Transfer the eggs to smaller crate and sell to retailers. When you put eggs in the bigger crate to sell the eggs will appear small whereas they appear big in a small crate. Paper crate cost about #50.
- The large size and pullet size eggs are more in demand than the small size. Large size can be bought at #900, medium size #850 while small size is #800. Retailers will buy the three and mix them to buyers at the price of the bigger size.
- Buy eggs directly from farms or wholesalers who are in partnership with farm owners. It is risky to source for eggs in open market because the quality of egg matters.
PROFITABILITY IN EGG DISTRIBUTION BUSINESS
The price you offer will determine your profit. But most distributors add #100 on top depending on the time but increases it when eggs are scare. Once in a while we experience this due to feed increase or epidemic breakout such as bird flu etc.
If you are able to supply 100 crates everyday. This will be 100×100 which is equal to #10,000. When you deduct expenses may be #5,000 you will be left with #5,000,. In a month it will be about #250,000 which is not bad at all in our present day economic situation in Nigeria.
Know that the more crate you supply the more profit you make. So widen your area of coverage for a better deal.
WHY YOU SHOULD START EGG DISTRIBUTION BUSINESS
- It is very lucrative
- The demand for egg is high as such the business is sustainable
- It falls under food chain so consumption is every day.
- You can operate from home
- The business can be started with small amount.
- Egg distribution business doesn’t require certificate, experience is key.
MARKETABILITY
Supply to indomie makers, bakers such as chin chin, doughnut, egg roll etc. Sell to market traders, the buy in bulk up to 20 crates at once and may finish selling in 2 days. Other places are super markets, hotels, restaurants, boarding schools, individuals etc. Position your car at the market premises for a large sales.
Advertise your egg distribution business in social media, print complimentary cards and distribute to people in your location.
HOW TO PRESERVE/STORE EGG
Eggs can be stored in a place with room temperature just like in crayfish preservation. You can put them in a shelve in a well ventilated room. Don’t keep them were there is heat from cooking or the likes.
It is not advisable to store eggs in the refrigerator in Nigeria because of erratic power supply. This is because if light goes off for some days and the eggs absorb the water produce on it by the refrigerator it will get bad in a few days when not consumed. But if you have steady light to power your generator you can preserve eggs in the fridge.
CONCLUSION
You can give egg distribution business a trial today, or you supply boil eggs to people selling foods, snacks provision shops etc. It Is not everybody that has the time to boil eggs for sale. This is another gold mine.
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