Profitable Eggs Business: This Best Profitable Eggs Business is meant for those who are interested in venturing into it.
So if you are interested in it, then relax, read on you will be glad you came here.
We will be discussing in details what it will take to turn you into a huge success as far as egg distribution in Nigeria is concerned.
With our well detailed and comprehensive Egg distribution Business plan in Nigeria.
Sample is all you need to become a successful and profitable egg distributor in Nigeria.
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Profitable Eggs Business
1. Profitable Eggs Business
If you have good marketing skill you will love this business.
The amount of startup depends on your finances, business plan.
Although not gender based you will find many women in this venture.
Success depends on the size of your customer base, implementation.
To build a customer base you need hard-work, networking, dedication.
It is important to locate a good poultry farm with large number of birds.
Major logistics are purchase of eggs, storage and transportation.
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Profitable Eggs Business
2. Business Background
A lot of people do not understand that there is huge business opportunity in connecting egg buyers and egg sellers.
Marketing eggs comes with lots of investment benefits because egg is consumed on a daily basis.
Many poultry farmers who produce eggs on their farms do not have the time to market in a bid to reach out to potential buyers because of the task of managing the farm.
This burden is taken off by egg distributors who come into poultry farms to buy crates of eggs at reduced price and sell to market women (who retails to end consumers) at a profit.
Many industries such as baking and confectionery make use of egg as an important part of their raw materials.
Production of poultry eggs is a major source of income for farmers who are into layer birds production.
Producers of layers feed and poultry cages, drinkers and feeders also make money from this industry.
Profitable Eggs Business
3. Steps to Best Profitable Eggs Business
- Secure funding
- Have where to store the eggs
- Buy some empty paper egg crates
- Build a customer base
- Secure transportation-buy or lease truck
- Find a poultry egg production farm
- Bulk purchase the eggs
- Transportation
- Sell to customers
4. Pros
The business format is simple, easy to implement. You can don’t need lots of cash to venture into the business, startup is as low as N70, 000 naira ($200) to N2 million.it is possible to earn¼ profit margin on supplies.
5. Cons
The business is highly saturated, competitive and demanding. Success depends on your marketing skill and ability to find customers. Transportation costs reduces the profit margin. Make sure you source directly from farms, avoid open market eggs.
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6. Startup Costs Egg Supply Business
Startup costs depends on the size and scope of the enterprise. Large egg suppliers buy heavy-duty vans or buses for easy movement of eggs. They also rent a shop, pay driver, store attendant, delivery boy. This may cost several million naira including cost of eggs and inventory.
Profitable Eggs Business
7. Costs
- Used vans or buses – N2 million naira
- Store lease – N150,000 a year
- pay driver – N360,000 a year
- store attendant – N240,000 a year
- cost of eggs at 850 each 100 crates- N85,000
8. GET A WAREHOUSE/OUTLET
Demand for table eggs fluctuates. Sometimes you end up buying more eggs than is eventually sold. There comes the need for an egg storage facility. An understanding of the guidelines of egg storage is important in the
construction of your warehouse. Site your egg supply outlet strategically as this will give your egg marketing business the needed exposure. In starting egg supply business in Nigeria, you can start small and grow your capital slowly. Buying and selling eggs might look strange to you but concentrate on how profitable it is. Don’t underestimate the place of personal relationship and referrals to the success of the business. Keep yourself busy and be productive.
9. MEANS OF TRANSPORTING EGGS
Most egg dealer move eggs from poultry farms to the market or their store houses with the use of vans. If you do not have a personal panel van or truck, you can hire one for a start. Asides careful driving, padding of the vehicle and compact arrangement of egg crates will minimize the amount of cracks.
10. LOOK FOR EGG BUYERS
(RETAILERS)
One of the key success in egg business in Nigeria is to grow a list of reliable egg buyers.
You can get market for your eggs through market women in foodstuff market like Bodija in Ibadan, bakeries and caterers and their referrals. How much eggs you can sell should influence how much egg you buy from your source i.e. poultry farms.
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11. SOURCE FOR RELIABLE POULTRY
FARMS
Your source of getting table eggs that you supply must be reliable. You should look for farms that can give you the eggs at competitive prices. The price of medium eggs ranges from N600 to N650 per crate. Jumbo (Extra-large or Double Yolk) goes for N700 to N750 Naira per crate. Some farms will not allow you come to the farm will your own paper crates to avoid transmission of infection through crates used on other farms. Paper crates can be sold to you at the rate of N3035 depending on the poultry farm. When choosing farms to stay buying eggs from, it is important to consider the selling price, quality of eggs in terms of size and colour, distance to market and means of transporting the eggs.
12. GATHER YOUR CAPITAL
Although some farms may give you certain amount of crates on credit after you have been tested over time, nevertheless you will need to have your capital with you when starting egg distribution business. You should decide on how much crates of egg you want to start supplying based on how much capital you have raised and how large how market is. Also note that in most farms, you would get better price when you buy more.
13. Equipment
Equipment needed are delivery van or bus, paper egg crates. Others are lockup shop, weight scale and basic store equipment.
- delivery van or bus
- paper egg crates
- lockup shop (optional)
- weight scale
- basic store equipment
| Equipment | Customers | Staff Requirements | Egg Sizes |
| Delivery van | Egg retailers | Driver | Large |
| Paper crates | Grocery stores | Bus Boy | Medium |
| Lockup Store | Supermarkets | Store Attendant | Small |
| Store equipment | Market women | Owner of Business | |
| Weight scale | Bakeries |
14. Egg Supply Business Delivery Van
To start egg supply business you need a few equipment. The primary equipment is the delivery van. This effectively reduces transportation costs on delivery.
Some small distributors use their personal cars or hire transport. This will cut into your profit margin. Any delivery van with good capacity will do nicely. Average cost of a used bus is from N1 million Nair to N 2.5 million
Profitable Eggs Business
15. Lease a Store
Some egg suppliers work out of a small store. The store should be secure from rats or rodents with good door. Some stores have shelves while others place them on the ground.
16. Find a Layer Poultry Farm
Make sure you find a farm with large number of layer hens. The price of eggs are generally fixed based on current prices, size of eggs. Most farms sell a minimum of 10 crates to wholesalers.
Things to consider is distant of farm to your store and market base. The further the farm the more money you spend on transportation.
17. Profit
As stated earlier the amount of profit is about ¼ of each crate supplied. For instance if the crate is N1000 naira you can make 250 per crate. This is just a rough estimate to show the earning potential.
Therefore the more crate you can afford to buy and sell the higher your profit margin. Other things to consider are transportation costs, size of eggs.
18. Egg size
The price of eggs differ based on size. You will find three sizes large, medium small eggs. The small eggs are the cheapest while the larger eggs costliest.
Some supplier mix the medium with small eggs for better profit. However good practice is to separate the eggs according to size and price.
19. Business Card
Another effective marketing strategy is to print business cards. Most retailers already have suppliers with years of track record.
To enter the market you can leave your card with retailers in the off chance the supplier disappoints them. The card also creates awareness, offer easy contact through your phone number.
Profitable Eggs Business
20. Marketing
Marketing is the most important aspect of the business. Without an effective marketing strategy your business will fail. Marketing involves word of mouth, advertisement, door to door.
Other strategies includes discounts, pay latter, and better prices. You need a complementary card or storefront.
21. Marketing Strategy
- word of mouth
- advertisement
- door to door
- discounts
- credit line
- offer better prices
- use complementary card
- sell from your own store
22. Sell to Retailers
Your target market are egg retailers, fast food restaurant, bakeries. Approach provision store owners, cooked noodles sellers, market women, hotels, canteens.
23. Who our Your Customers
- egg retailers
- fast food restaurant
- bakeries
- grocery stores
- supermarkets
- provision store owners
- cooked noodles sellers
- market women
- hotels
- canteens
Profitable Eggs Business
24. Staff Requirements
Most egg suppliers work alone or with a bus driver. The business is easily a one man show however you need someone to help in loading/offloading the eggs.
Conclusion:
Eggs are largely consumed by a wide range of people and organizations in Nigeria ranging from restaurants, hotels, boarding schools, events, families, and individuals. It is even more interesting to know that in the production of most confectioneries, eggs are used in the manufacturing process, and as such, their demand and usage in Nigeria remains astronomical. For the complete details, click >>> https://businesshab.com