AGAPE BUSINESS CONSULTANTS week 15

"IDEA 15 OF 52 – GRAINS REBAGGED/REPACKAGED/RESELL
mrebis idea 15
The Idea



Rice, Beans and Garri, or any other grain out there in the Nigerian market can be bought wholesale (50kg), rebagged (with permission from your supplier) and resold in smaller sizes (2kg, 5kg packs).

The common practice in the market today is they buy the full 50kg bag, then start selling using bowls (rubber, congos). The estimated calculation for 1 congo of rice is about 1.56 Kg. If the new business man joins in on this, but instead of using bowls or sampling the rice in basins which leaves it exposed to dust and people’s hands, one can rebag the rice (beans, garri etc.) in a neater well designed pack and sell to retailers, corner shops, big departmental stores, etc




So while those in the market sell their 1 bowl (congo, rubber) of rice for 550-650 naira, your packaged bag of 2Kg rice which is about 500gram more than theirs can sell for about the upper limit of that range, like 650. You can workout your own price to cover for your operational cost. There are 5kg bags of rice in the market, but most are imported which are currently banned in Nigeria.




Idea Summary

Choose your grain (Rice, beans, garri)

Source for your wholesale supplier

Negotiate your price putting in mind how much you intend to sell

Rebag/repackage your small sizes (2kg, 5kg)

Deliver to your customers (retailers, corner stores, departmental stores)



You would need to approach your prospective customers first to know how much they would pay for your rebagged grain (rice, beans etc.) so you are well informed on what price to agree on with your wholesale supplier.



NB: You should not just buy rice from your supplier and rebag it with your brand name without their permission.

Your rebagging/repackaging workplace, Equipment (Sealing machine, bag printing) should be clean and meet hygiene standards, and you should secure a NAFDAC number as well.

You could look around for where to buy and print your bag for repackaging your Rice (beans or other grain)

While some people might be currently doing this, no one stops more people from joining in.







The Business


Value Proposition: Provide quality, well packaged, and affordable Nigerian grains (Rice, Beans)

Customer Segment: Retailers, market sellers, corner/street stalls, departmental stores, etc.

Distribution Channels: Warehouse (depot), dedicated phone, sales team and customer service reps etc.

Customer Relationship: Direct and Mass

Key Activities: Selling (Sales and Marketing), packaging (repackaging), Logistics and distribution, etc.

Key Resources: Sales team, Production/manufacturing facilities, management team, supply chain manager, quality control officer, financial accountant, etc.

Key Partners: Retailers, departmental stores and other shop owners, product related Unions and associations, Government and related government agencies, etc.

Cost Structure: Workplace facility and equipment (sealing machine, bag printer etc.), Maintenance and other utility bills, Staff wages and Salary Bill, registration and licensing (NAFDAC and other necessary documentations).

Revenue Stream: Sales of Rebagged/Repackaged grain product.





Competition


Like every other business or anything that has the potential to bring revenue, there would be others doing it, or thinking of doing it now or maybe later. Whatever the case might be, there is a lot of work you would need to do. Check to see the competition you have, what they are currently doing and how you can create an advantage with which you would compete in this market. Look for Niche areas where you could start supplying your resized Rice (2kg, 5kg bags). Think of school environments too.





Risks


Be sure to choose a supply that aligns well with your operational strategy. Your supply would need to be reliable and be as quality oriented as you should be and should not cut corners or supply you inferior or substandard product (grains).

You would need a strict quality assurance policy at your workplace in order to preserve consumer’s trust and the integrity of your NAFDAC and other regulatory approvals.

Poor harvest of grains by your suppliers can affect the availability of their supply and could have direct impact on your business too.





Summary



This week’s article has shared a possible opportunity in buying large volumes of grain products and repackaging it into smaller bags (2kg, 5kg), which could sell faster.





If there is any thing I missed out, feel free to comment, share your information or contact me, so we all can learn solve our problems together.



Thanks for following this series.



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Till next week, stay inspired."