The cement industry in Nigeria is one which has witnessed tremendous improvement from what it used to be before. The market is more diversified with major players participating. The major cement manufacturers that readily come to mind are Dangote, Ashaka, Lafarge, Bua, Unicem among other big players in the industry. These cement manufacturers have opened up the market for participation. Today, you don’t need to have all the money to establish a cement manufacturing plant. You can still participate in this industry by becoming a distributor.
SEE ALSO: How to Start Cement Business in Nigeria
Making Your Choice
To become a Dangote Cement distributor in Nigeria, choice is necessary. Why? Though there are several cement manufacturers, Dangote is by far the biggest. You will need to select which company to work with. If you want to go with all, then you will have to carry out a lot of background checks on each cement company. Having a good understanding of the distributorship requirements of your most preferred cement company is necessary.
To do this, you will have to consider doing business with the cement brand that has more acceptance with Nigerians as this is a necessary component and translates to patronage which results in your profits.
Compare the Incentive Offerings Among Cement Manufacturers
To get a good deal, it is important to carefully compare all the distributorship incentives of all the major cement manufacturers. But why use the word “major”? Simple! it is because it will be unwise to seek for distributorship from an unknown or unpopular cement brand. The major aim of seeking for distributorship is for profit. Carefully studying the requirements can enable you spot the best deal offering. The cement company offering the best conditions that will help your business aspirations and target should be applied to.
Another important area to consider is the support provided by the cement company. The company offering the most support should be patronized. This is because your business stands higher chances of succeeding under its business arrangement than a cement company with a poor support structure.
Basic Distributorship Requirements
There are certain standard distributorship requirements cement companies expect from individuals or businesses seeking distributorship rights. Using Dangote cement as an example, some of its requirements includes a form of proof of registration of business name with the Corporate Affairs Commission. This is usually in the form of a certificate of registration. Other requirements include a distributorship application letter, a bank reference letter scan, a passport photograph of the company’s MD and representative.
Apart from the application requirements, the company will check for availability of facilities that are necessary for distributorship. Examples of such facilities include delivery vehicles such as trucks or vans and also a fairly large warehouse that will carry its products. You cannot seek for distributorship rights without having these in place. On the scale of importance, a warehouse weighs heavier than delivery vehicles. This however does not make the former less important.
For most types of businesses, location is key. It determines the level of patronage and profitability. Locating your business in a place with low economic activities such as rural areas will definitely impact sales negatively. This is especially true if your target is to start a mega cement distributorship business. It is important that you look for locations with high economic activities. In Nigeria,siting your cement warehouse within or around the central business districts will really jack up sales.
However, location is not restricted to areas close or within the central business district. There are also major towns across Nigeria where you can locate your cement business. The bottom-line here is locating your warehouse in commercial areas where the bulk of you patronage will come from. Failure to do this will certainly result in slow sales which is not good for a cement distributorship business.
As common as this may sound, it is important that you strongly consider this. To succeed in your cement distributorship business, it is very necessary that you make inquiries especially from those doing this business. This may not sound attractive at first because they are supposed to be your competitors. Knowing how to go about it is very important. Sometimes, becoming friends with them can be a first step to getting basic information. The cement company is where to get detailed information after getting the distributor’s perspective.