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. 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.
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. 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.
CONCLUSION:
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.