Have you ever wondered how to start a soft drink business in Nigeria, but wonder how or where to start from? If this is your predicament, then you need not worry any longer as this article will set out to teach you the easiest way possible to achieve this goal. You do not need to start from scratch as this may require substantial capital.
To become a distributor, all you need to do is simply apply for distributorship rights from any soft drink company of your choice. However, one thing you need to look out for is to make sure the company has a solid brand and wide acceptance among Nigerians. This is why we will offer you all the necessary details you need on how to start a soft drink and juice distributorship business.
Making Critical Choices
To become a soft drink distributor in Nigeria, certain procedures need to be followed. One of such considerations is the choice of a reliable partner. In choosing a partner or company, you will be spoiled for choice. This is so because there are several softdrink companies doing business in Nigeria. Most of these companies have multiple products. However, it is advisable that you choose those with products that have wide acceptance among Nigerians. Doing this enables your business move faster as the demand for such products is high.
Some Soft Drink Companies in Nigeria
If you have ever wondered how many such companies do business in Nigeria, wonder no more as we will list some of these companies. First of all, there are softdrink companies with a global spread as well as those operating only within Nigeria. Some of these companies include; Coca Cola which is arguably the biggest soft drink company in the world. It has subsidiaries in almost every country in the world, and is one of the most recognised brands worldwide. Others include the Nigerian Bottling Company, 7 Up Bottling Company, Limca Bottlers PLC, Crown Drinks Limited and Vitamalt PLC. The list goes on and on as these are just a few out of many.
Things to Consider
To become a softdrink distributor, you need to consider some basic things such as the choice of a target market. This is crucial to the success of your business. When choosing your target market, you need to pay close attention to soft drinks attracting the highest demand. Selecting rightly can make an immense impact on your business. You are likely to realise higher patronage leading to increased sales. However, there are other equally important considerations to make. Such include your choice of a suitable location. When choosing a location, you should factor in access roads, transport options available to you as well as holding or warehousing facilities in for your business among others.
How do You Make Your Profits as a Distributor?
If you qualify to become a distributor of the company of your choice, there are advantages attached. These advantages include the profit margins offered by the softdrink company. Here, you benefit from this profit margin from every product you sell. Each product as an allowed margin which goes to you while selling at the official rate allowed by the company. Although this business is a good business to do, it is important that you understand the cost implications involved. There are several distributorship levels which most softdrink companies offer. For major distributors, substantial amount of capital may be required which may run into millions.
The Application Process
Although each of these companies may have their requirements, there is a general procedure for applying for distributorship rights. Being a distributor means that you are given the privilege of operating under the brandname of the company. You will need to meet the company’s requirements. Most distributorship requirements demand that you own certain equipment such as a warehouse, delivery vans or trucks, as well as the money needed for your initial products. All you need to do is walk into any softdrink company of your choice. A detailed guide on the application process is provided.
Another way to learn about becoming a distributor is through existing distributors. Although some may see you as a threat to their business, you can avoid this by telling them you will not be doing business anywhere around their business. It is important that you be truthful in this.