3 Ways You Can Earn As An Egg Distributor

3 Ways You Can Earn As An Egg Distributor

Egg distribution is a long chain of businesses. It does not start and end with ordinarily merchandising the article called eggs. For the real act of selling eggs to become real, a lot would have taken place and each of them are rewarding on its own.

They are:-

Farm locaters and price setter.

 It may sound new and absurd to many would be distributors to know this. Yes, so many people involved in egg distribution starts and ends on this point. A lot of them go a step further to invest huge sums of money in the business. All they do is to have a long list of distributors whom they serve. Theirs is to pay for it at the source add a mark-up and that’s it. You can equally do the same without investing a dime but your brains.

Logistics providers.

These people most times act as the hinges in egg business deals. They are our traditional transporter. For new entrants into the business of egg distribution, locating a business brand logistics provider is an easy access to the source of eggs all year round. To be in this category, all you need to do is to own a vehicle and major farms. The good thing about them is that they get paid for moving the item up-front. As at now in the nation, logistics providers do earn in six figures with ease.

Marketers.

Many new distributors and farms need marketers to excel. Farms are known to be more interested in production and distributors are also prone to sourcing for eggs with little or no cut out plans for sales. The marketer does the job of locating buyers and mode of supplies. For their input, a percentage of the profit is theirs to take home.

With all these getting involved in the ever lucrative business of egg distribution is more open than ever. Join the trade at your own pace.

Egg Distribution Is Just Like Any Other Business Or Investment

Egg Distribution Is Just Like Any Other Business Or Investment

Many Nigerians do not see egg distribution as a real business as in what they termed a business. For many, it is something you can do in your spare time and scoop some extra cash to augment an existing income. What a wrong impression!

Just like any other business there is, egg distribution is a full-fledged business in Nigeria in all angles. Whatever it takes any other business to be successful, the same is applicable in egg distribution. These includes intensive planning and drawing out a business and investment plan, jumbo funding, marketing, logistics et al.

Recently, it was discovered that a whole lot of people involved in the business are doing it on the petty level – that is not all there is. While some are at the petty level, few others are doing the same in a mega scale. Suffice to say, it is a multi-million Naira investment.

Those who have identified this line of business as a worthy one does it with different mindset and intelligence Quotient. They do mop up the greater volume of produce in some farms and deliver them to areas where it is scarce. Some of the mega distributors have egg depots where lots of small and medium scale distributors source their products from. A good number of them takes care of the corporate clients who asks for credit supplies and pay bi-weekly or monthly. Also in the cities, many chains of confectioneries and supermarkets do depend on them for its availability in their shelves.

It is not awkward to identify mega egg distributors who did technical investment with farms for unbroken chain of supply year in year out. These set of investors are believed to be owners of large farms whose income from the business runs in multiples of six figure income periodically.

However it is funny to tell people you are an egg merchant. Of course you may not have noticed anyone who made a fortune out of selling egg. Well, today the tides are turned. There are potentials and opportunities to invest in the business as any other business which can amount to multiples of millions in investment and unparallel multiples of hundred as income monthly.

What makes dealing on the item a bomb is that it is an edible fast moving consumer good, it is a perishable item and its place of production is always away from easy access to the ultimate users.

Why Poultry Farms Don’t Offer New Distributors What They Want

Why Poultry Farms Don’t Offer New Distributors What They Want

If there is a dire need of a would be or new entrant into the field of egg distribution, it is locating a poultry farm for regular supply of fresh crates of egg. It is totally annoying that the more a distributor keep making a cash based demand from a farm, the more their offer are rejected.

From available statistics, most new distributors do place demands of 100 crates and above in their first approach to a farm or distributor. Naturally many farms can meet such demands outright but will not. They have a lot of cogent reasons for this. The summary of it all being that such a new distributors’ knowledge and future in the business is not known. To put many of the new clients at check, they offer them volumes of crates of egg between 30 – 50 weekly. This nature of offer is always rejected.

In such a situation, what will a new distributor do?

·         Start small

·         be consistent

·         grow over time

The farms are in constant dilemma of what their weekly sales would look like. They are afraid of a new entrants skipping their purchases. Such acts puts the farm in great jeopardy and may cause unseen hitches in their operations. Thus they are at home with the few who are tested and consistent.

So, start with the few volume you were allocated to, make friends with the management and existing clients, not long they will provide tons of information to you on how to get what you want. For the same farm who offered you a small volume initially, for your consistency, they will increase your allocation periodically as they increase.

Mastering Irregularities Associated With Egg Distribution

Mastering Irregularities Associated With Egg Distribution

The business of egg distribution has a lot of similarities with trading of stocks in the stock exchange, yet they differ a lot. They both thrive on the swing of the pendulum. If you follow some principles and ideas, in both left and right swing, you will do well.

Egg distribution is laced with a mammoth of irregularities all year round in Nigeria. These challenges emanates from the activities of egg distributors mainly in their bid to pile up profits for themselves while the actions of the poultry farm owners helps to stretch it further.

These irregularities are basically orchestrated in the following areas:-

·         Sourcing of eggs

·         Slash in prices during glut

·         Credit supplies

Sourcing of eggs: One of the mistakes egg distributors make is swinging sources of their egg supply. It is pronounced when one source is totally abandoned for another and trying to revert to the old one when there are issues. The change may be logistics, nearness or price induced. This act is pronounced when there is a glut in the system and many farms do take the extra cost of delivery. Once the glut ends they are nowhere to be found again thus creating irregularities in the supply chain. Distributors may make lots of money in the short run but lose in a large scale in the long run.

Pricing: From research, many farms in the hinterland with a standard pricing policy are the best to build your business with irrespective of their price. Most times their prices are a bit high but they compensate their client base with unlimited supply of eggs all year round. However, some farms and mega distributor may knock some of these kind of farms out of business temporarily and hinge a distributor on a dilemma later.

Credit offers: During glut periods, many distributors do opt to give away their supplies on credit. For the distributors it is always a welcome development. Unfortunately it does not last longer than few months before they reverse the trend once again. When the credit supply dries up, scarcity is eminent.

Above all these, it will always pay a distributor to pitch his tent with one or two major sources while augmenting it with others sources at intervals. For a real investor in egg distribution, regular access to eggs is non-negotiable. Slow and steady wins the race.

Earn 40% Profit Monthly In Egg Distribution

Earn 40% Profit Monthly In Egg Distribution

Taking home 40% profit monthly in egg distribution is not a hard task for a dedicated investor in Nigeria. The most wonderful truth about this information is that many Nigerians and a whole lot of others may never believe this. Many will doubt it and produce words to confirm their side of the debate. Unfortunately, facts don’t lie and they speak volume here.

I am writing from my own independent experience and what you may arrive at if you will do your homework above average standard. Let’s work with the following points in view:-

·         You source your eggs directly from a farm and enjoy direct delivery

·         You have a loyal customer base

·         You deal with retailers and end users directly

·         All their purchases are on paid weekly demand

·         You have an above average sense of sorting

If the above enumerated are in place, taking home 40% profit from your investment monthly is a done deal.

Let’s assume that as at this period, February 2017, you get a crate of egg at the rate of N1,000.00 [one thousand naira] each [this includes the cost of purchase and logistics]. And you advance them to your clients [end users and retailers] at N1,100.00 [one thousand, one hundred naira] with a mark-up of N100.00 [one hundred naira] only, you are home and dry.

N100.00 profit on an investment of N1000.00 is a perfect 10% returns. Thus no matter the volume you deal on the profit margin is assured.

Let’s do a little calculation:-

·         Your capital is just N50,000.00 [fifty thousand naira] only

·         You buy 50 crates of eggs weekly

·         You make only but N100 [one hundred naira] profit per crate sold

With the above scenario, you make N5,000.00 [five thousand naira] only weekly. When this is repeated in the four [4] weeks that make up a month, that will be 10% into four [4] times, which equals 40%.

The above is a rough sketch. While dealing with some end users, the profit margin is higher and the already earned profit in the first, second and third week can be deployed into the business thereby increasing the profit by some margin.

The truth is that fewer items can offer such a volume of profit in today’s Nigerian situation. This is a secret hidden by many who do this business.

How To Source Eggs In Scarcity Period

How To Source Eggs In Scarcity Period

One of the cardinal attribute a of successful egg distributor is constant access to your needed volume of crates of eggs all year round. And most importantly during the scarcity time frame. In Nigeria where the business is not yet structured, some pro-active distributors have a way of getting what they want and how they want it.

Having unhindered access to eggs during scarcity period is made possible via three things, namely :-

·         Funds

·         Persuasive skills

·         Means of transportation.

During this period, farm owners are totally unstable in their offers and agreement. This is made possible for the fact that many buoyant distributors go an extra mile of going to their farms to meet with them. You will recall that major scarcity periods in Nigeria are from end of December till the middle of April. This is the resultant effect of the large volume of birds sold during the Christmas festivities. The newly introduced ones takes another four [4] months to mature.

With the duo of funds, persuasive skills and personal logistics, you track a farmers, persuade him or her to buy off her produce and make advance payment. Once the crates of eggs are secured, you transport them personally to your destination. With this act, you take off the burden from the farmers and this is a good offer for many of them.

Distributors who can do this more often exhaust their purchases within a shorter time frame.

Paper And Plastic Crates – Which Is A Better Option In Egg Distribution

Paper And Plastic Crates – Which Is A Better Option In Egg Distribution

Crates are one of the major fixed assets owned by an egg distributor. They come in two forms, the plastic type and the paper ones. Both are readily available in the Nigerian open market across the nation. Let us take a look at the qualities of the two as it relates to the business of egg merchandising.

 

·         The paper crates are cheaper in price when compared with that of plastic. Thus for someone with a low budget, paper crates may be of the best use for him or her. That of plastic is of a higher price. There is always a price difference of about N100.00 each between both of them.

·         The plastic crates lasts longer than that of paper. Regular use weakens the paper faster. Being a fixed asset that is subjected to use on a regular bases, it will be most economical to opt for it. Most often eggs do crack while stacked and awaiting sales, its fluid do drips down. For the plastic it does not spoil it while for the paper, it damages it most frequently.

·         Paper crates do protect the eggs better than that of plastic. The holes in a paper crate seems to be larger thus offering a good space for each unit of egg. In the case of crack, paper crates do soak up the fluids allowing little or none of it to drip to the next in the stack. Soaking up the fluids more often do spoil the crates.

These few ideas may help distributors, mostly the new entrants to make a better choice while buying them. Also it will help existing ones to take positive and effective steps towards cost cutting and profit maximization in their businesses.