Bread Supply Business


How To Start Bread Supply Business In Nigeria


Bread has been the major food staple from time immemorial, that’s why everyone loves bread. Back in the ancient time, the word “Bread” denote food in general and is still regarded so even down to this day. Most families eat bread more than once everyday and it can be eaten in various forms with different spices. That is why bread supply business is one of the most ideal small business to start right now.
The importance of bread as food has never been in question – There is hardly any tribe, religious group or race that doesn’t eat bread. Therefore, dealing in bread as a business means you’re dealing in product that is in high demand, and whatever return you’re making from it, is going to be a stable return since you’ll will be constantly supplying and getting your profit returns.
Sliced Bread is the ideal type of bread for supply because of its wider appeal and higher quality. Not everyone eats Agege Bread though some people it better. Sliced bread is more likeable and is considered of higher quality (at least that’s the general perception) some may disagree on that.
One beautiful thing about slice bread supply business is that you will make quick returns. Once you’ve done your marketing to get your regular retailers, all you will be doing is to supply them at interval and get your money cash at the point of supplying. So, it’s a business you can borrow money to do and be able to pay back almost the same day.
Another great thing about sliced bread supply business which you will love to hear is that, it’s a business that offers very decent return on investment and the repeat sell is almost endless. If you are able to supply 500 loafs of slice bread with profit margin of about N40 per loaf, you’ll make 500×40 = N20,000 every time you supply, and you can supply twice in a week depending on the demand and your brand. I’m experienced in this business and I can tell you this is the fact!
Requirements to Run Bread supply Business
The requirements are simple and anyone can meet up with it including you! It’s one of the cheapest business anyone can start and you don’t need any further training more than what I’m going to explain here, but you need some hard work and I think that’s the hallmark of every business, hard work is a virtue and you need it in your bread supply business if you hope to make lots of sales.
1. Get Customers
You need good customer base, I mean retailers to whom you’ll be supplying to – the more retailers you have, the more breads you will be supplying and the more money you will be making.
2. Get Means of Transporting
You need means of transporting your bread; your customers/retailers are spread all over the place and in most cases, they don’t come to you, you go to them to make supply and collect your money. You need at least a motor-bike for that purpose.
3. Source for Good Marketable Bread
You will need a very good product that people love, you don’t have to be supplying all the bread brands, one type is just enough but you need to get one that will be highly acceptable by consumers. Getting a good bread may as well be the difference between success and failure in this business.
4. Get a Shop or Offloading Point
You will need offloading point where you will be offloading your sliced bread whenever you have a supply. From there, you can distribute it to the retailers; if there are any remaining breads or some you’ve not supplied, they will be stored there for future distribution. Having known the requirement, next is how to put everything together and get your business started
5. Look for a Brand
You need to know the bread you intend to supply so that you’ll be able to explain better to your intended retailers. First, scan the area you want to be supplying and see what types of sliced bread that is on sale. That will help you to avoid encroaching on another supplier’s territory, a supplier who is already supplying a particular bread brand in an area may prevent you from supplying the same brand he or she supplies.
Then, go out and look for a unique good sliced bread brand that is not found in your area, visit bus stops in other area to see the types of sliced bread they are selling, pick the one you like and look at the label to get the contact address and phone number, you may ask the bread sellers for more details about the brand (how fast it sells and life span) they’ll be willing to give you the information.
6. Proceed to the Bakery
Personally, go to the bakery to negotiate the franchise, the bakery manager will be more than happy to welcome you because, you are bringing new business to them and helping them open a new frontier. When I was in the business, we used to get the sliced bread for N200, sell to the retailers at N250 while they in turn sell N300.The manager or whoever is in charge of the bakery will be able to explain what is obtainable now.
Apart from the price, you should negotiate logistics as well, like bringing the bread down to your designated offload point which is the norm but they will try to withhold it from you if you don’t know.
Note: some well-known brands (UTC, V-lue, Butterfield, etc.) may not agree to transport it down for you except you’re buying in very large quantities.
7. Get the Retailers
Having armed yourself with the exact product you want to supply, the next thing is to find the retailers. Talk to provision shop owners and bus stop bread women. These two set of people are your biggest prospects as far as sliced bread supply business is concerned.
Each person you talked to that accepted to get your supply, find out how many loafs of sliced bread he will be getting. At the end of the marketing, calculate the estimated number of loafs these people demanded for and base your buy on this.
8. Get your Supply Equipment
Buy a Motor-bike if you can afford it (a Bajaj motorcycle goes for between N150,000 – N200,000) that will make your supply so easy and help you reduce over-head costs. But if you can’t afford that, just pay Keke-man to take you round.
Find your offload point, it can be your home or a shop – go for shop if you can afford it (N120,000 depending on the area) but if you can’t afford that too, use your home until you raise enough money.
Once you have these things in place, call the Bakery and ask them to bring the bread down – you’re ready for business. If you can supply 1000 loafs in a week, you will be making N50,000 weekly.
I wish you success as you pursue your dream business this year!
Do you need a business plan or enquiry for this business, drop a comment then I will reply
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