With over 190 million people in the country, Nigeria is the most populated country in Africa and the seventh most populous in the world. With increasing infrastructural development in various parts of the country, so does the need for cement also increases.
Almost all forms of construction works carried out in the country, be it in form of erecting of residential and commercial buildings, and industrial structures require the use of cement.
There are several cement manufacturing plants in Nigeria, but Dangote cement is arguably the biggest.
Dangote cement company has its projects and operations all over Nigeria and in over 14 African countries. Its cement plant in Obajana is reputed to be one of the biggest cement producing plants in the world.
This guide is intended to provide you with the basic information you need to become a major distributor of Dangote Cement.
How to become a major distributor of Dangote Cement
Dangote cement company still seeks for distributors all over Nigeria and Africa to carry out the sales and distribution of cement in various locations.
Becoming a Dangote Cement distributor is not a huge task. Below are the requirements:
1. Have a registered company with corporate affairs commission or any other statutory body in your country. If you don’t have a registered company you might want to do so before you fill out the required registration forms.
2.Open a business account: Walk into any bank of your choice and open a business account. A current account is better.
3. Visit any Dangote Cement depot with copies of the following documents :
*Certification of registration
*Application letter for being a distributor
*Scanned copy of the reference letter given by the bank
*Passport photograph of the MD and the company’s representative
The registration period takes about 48hrs.
In addition to the above requirements, the following are also important considerations before embarking on becoming a major distributor:
4. Get a warehouse: This is necessary for you to kick-start your business, as you need a space large enough to contain at least a trailer load of cement. This is to ensure you lack no stock to constantly supply your customers.
5. Get delivery vehicles: Having a delivery vehicle is an added advantage for your business. It encourages more customers patronage when they are assured you can deliver to their location even at a fee.
6. Locate your business close to consumers: Carefully choose the location of your business. Your business location is very important to your cement business. Ensure you site your business in a developing environment where new buildings are coming up, as this will help give you more patronage.
Becoming a major distributor of Dangote Cement requires a fairly large sum of money. Presently, purchasing a trailer load of Dangote cement which consist of 900 bags of 50kg cement bags costs up to N2.5 million, while the 600 bags trailer cost up to N1.3 million naira.
This price is subject to change as the cost of cement isn’t static and the cost of buying a bag of Dangote cement as at the time of writing this is about N2300 for wholesalers and is sold at N2500 to consumers depending on the quantity being purchased.
Market availability for the product
Dangote cement is highly sought after for various building projects, due to a number of reasons and this helps; to facilitate easy distribution and quick sales of the product by distributors.
You need to create a good sign board at your business location, warehouse or store. Use every available means of marketing to publicize your business and if you do, you will succeed.
The beauty of cement business is that one customer can buy products that can give you good profit by buying a large quantity of products up to100 bags of cement and more.
Most customers buy more than one bag and several of them buy in large quantities, so you can be assured of your profit.
If you don’t have the required capital for becoming a major distributor, you can be a sub-distributor who buys from major distributors. Although, you will buy the products at slightly higher price from the majored distributors, but with time you should grow and apply to be a major distributor.
Look for a good location, preferably in a developing area where lots of infrastructural and housing development takes place. Target sites under construction, you can visit construction sites and meet with the engineers in-charge and tell them how you can save them money by bringing cement to their sites at affordable cost.
Dangote cement company doesn’t have any application or registration fees. If you fulfill the above expectations and have your purchasing capital, you can start immediately.
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About The Writer: This article was written by Salome Precious. She is senior content developer at myafribusiness.com. She is an accountant by training and a business enthusiast by passion.
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