Recharge Card Printing/Supply Business Plan in Nigeria

The Life span of a business is determined not just by large profit but by the frequency of turn over. As the number of phone users increases in Nigeria, the rate of recharge cards consumption soars. Hence, the number of prepaid subscribers outweigh that of postpaid customers. Voice calls and data usage keep necessitating the purchase of recharge cards. Hence, this details steps are to be taken to be a successful Dealer.

SEE ALSO: How To Start GSM Recharge Card Business In Nigeria

According to Hakeem Belo-Osagie, “remaining where you are in a world that is changing so rapidly is in fact the MOST DANGEROUS  of all places to be”.  And base on this fact of life the need for a quick and drastic measure to invest is now more than necessary. Listed below are some important facts that you need to consider in other to be a successful Competitor.

OBJECTIVE

To be a leading supplier of all denominations of recharge cards and agent to all the Telecommunication service provider in Nigeria, the best and viable means is by offering door to door service to retailers who may find it stressful to leave the comfort of their shops in order to buy recharge cards

MARKET

More retailers are embracing the business of selling recharge cards because it’s a special kind of fast moving consumer goods(FMCG) unlike perishable food, does not expired or spoil; moreover it’s becoming a necessity for young and old to recharge their lines to serve their communication need.

Watch this video explaining how to print recharge card on your mobile phone

STRATEGY

Just as the number of subscribers are much so the numbers of suppliers are increasing. This competition has made some people abandon their previous business because of the profit in it. To sustain our dealership, we have decided to increase turnover by reducing price while most dealers
and sub-dealers make profit of 2%-5%, we have resolved to make profit of 1%. Hence when we turn stock worth of 400.000(four hundred thousand
naira) in a day over we make 4000.

SEE ALSO: Feasibility Study on Recharge Card Business in Nigeria

This is possible if we target 10 individuals who buy N40,000(Forty thousand naira ) or more worth of stock daily. A sales representative will go to these customers very early in the morning to supply stock, even if he or she is paid salary, there is still something viable for the organization at the end of the month.

TURNOVER

Stock valued at N400,000(four hundred thousand Naira) is expected to be sold daily for 30 days (some weekends with much increase in demand) and some retailers sell more than 50,000 (Fifty Thousand Naira) daily, on the average a profit margin of 120,000(One Hundred and Twenty thousand Naira) will be made monthly.

BUDGET

Buying of stocks = N340,000 (three hundred and forty thousand naira)

Transportation = N20,000 ( twenty thousand naira)

Salary for sales representative = N20,000 (twenty thousand naira)
Business card = N5,000 ( five thousand naira)

Phone for sales representative = N10,000 ( ten thousand naira)

Cost of recharge card for calling retailers = N5,000 (five thousand naira)

RISK

Sales representative are expected to guide monies carefully while selling stock to retailers, so as not to attract hoodlums who snatch bags from ladies and gentlemen as the case may be. Such sale representative must sign undertaking and present two guarantors with a cooperate account with banks in case of carelessness on their part, and such guarantors will be liable.

PROSPECT OF GROWTH

Initially, retailers who buy stock worth of N40,000 (forty thousand naira) daily will be target. Be it as it may, remember that there is a need for you
to retain and keep your customers. At the end of three to four months our supply chains is expected to have double by 50% giving us 15 retailers.

SEE ALSO: How to Become Airtel, 9 Mobile and MTN Agents in Nigeria

With the outlined and explained point above, I believe we are on a pedestal that will make it convenient for us to effectively execute business of sales of recharge. It will be of interest to you that we have acquired on the job training and experience. This is an advantage and a leverage to ensure success, especially considering that this business isn’t limited by time,space for storage and territory.