Category : Grow Your Business

Grow Your Business

Tips To Grow eCommerce Business In Africa

African eCommerce business entrepreneurs are waking up to niche stores. The growing number of niche stores ranges from shoes, bags, wristwatches, kitchenette, phones, accessories, etcetera. Niche eCommerce sites has not only taken over, they have cut to size big eCommerce marketplace brands like Jumia and Konga.

Although, among the African eCommerce markets, South Africa, Nigerian and Kenya stands out with growing patronage for goods online. But the entire African, with a population of over 1 billion presents a huge business proposition for investors.

According to an update from The Asian Banker website, African will move from $16.5 billion online purchases in 2017 to an expected $29 billion in 2022. The huge increase is as a result of the spread of niche eCommerce sites in sub-Sahara Africa.

Why African eCommerce Stores Are Not Doing Well

At the inception of eCommerce business in Africa, the general problems they all face was categorized into three. These problems hindered many new entrants from succeeding. Here are why:

  1. Lack of funding
  2. Lack of trust
  3. And logistics challenge

That was before this new trend in eCommerce – the niche stores. Now, funding couldn’t have been any problem. You can start eCommerce business on a shoestring budget, from design to products you list for sale. And DropShipping makes it even much easier. You don’t have to handle any logistics issue, while you can operate without employees, and be completely on autopilot.

However, the issue of trust is still something that needs to be dealt with, even by niche stores. Online trust and real life trust are not exactly the same. Niche stores can change the narrative on trust by building a better online reputation. The only challenge is that most of them are eCommerce enthusiasts without proper skills for the job.

Clever Ways to Boost eCommerce Sales

Still on what African eCommerce stores are not doing well. Let’s look at boosting sales. The primary business of every eCommerce store is to make sales.

Africa has over 1 billion population and yet must eCommerce businesses are not enjoying enough sales. I will list a couple of what needs to be done to improve sales in a massive way.

  • Using paid traffic
  • Using upsells
  • Improving trust
  • Advertising product benefits
  • Simplifying checkout process
  • And improving Email marketing

If there’s any better way to quickly generate sales for your eCommerce business that’s through paid traffic. It must also be done in a professional way to maximize every dollar ad spent. That’s important, especially at the early stages of your eCommerce business.

The rest on my list are to compliment your paid traffic effort to maximize sales. Even if you lack the skills to implement these on your own, the internet is flooded with skills for hire at very reasonable fees. You can get any skill set you require to grow your eCommerce business online.

Why You Need To Hire The Right Skill Set

Sometimes the burden of not knowing why you do what you do can lead to failure. Inasmuch as your eCommerce store is built for the purpose of selling product or service, you need to recognize what should be done to make those results faster and cost effectively.

Make no mistakes, without these things your eCommerce business will not be successful. Now I need you to pay attention to the right tactics to improve your eCommerce sales.

  • Number one: is to grow your brand. To achieve that you need to get the best logo designed for your store. All your branding must reflect the kind of image you want your target market to trust.

Number two: use email marketing effectively. If there’s one online business that is huge in email marketing that’s eCommerce stores. And because your store rely so much on email marketing, it must be done well to reflect that image you have built and constantly reach out to customers with personalized online experience to make them buy regularly.

Number three: drive more traffic with adverts on social media platforms. If there’s one place you can find the best targeted audience for your eCommerce business is on social media. Run most of your adverts on the platform. Advertising on social media platforms reduces your cost, by targeting precisely the right audience for your store.

Number four: try to understand your customers on a much deeper level. Understand that your customers are shopping on your store because you provided a solution to their problems. Get deeper understanding of the problems that brings customers to your store. Know why your customers are making the decision to buy from you.

Number five: serve your customers in the best possible way. Customer service is one way to let your customers know that you care about their problems and not just about their money. Before now, good customer service can only be provided by big eCommerce stores, because they could afford to hire the best customer service consultants. Now you too can hire a good customer service consultant on freelance at a much reduced cost for your small eCommerce store.

eCommerce Marketing Skills To Hire

Now that you know what are responsible for your eCommerce success, let’s align them with the kind of marketing skills you need if you plan to hire someone to do them. Moreover, there’s nothing to be ashamed of if you can’t do any of them yourself. Nobody can do everything required to market their eCommerce business.

As a blogger I can write, but I hire others who are specialists in their field to do most of my other works to make my blog grow. That’s the same with managing an eCommerce business. You can’t do it alone. You may not even know what’s lacking or reasons why your store is not doing better sales.

Well, I have made a list to show you the things that your store needs to grow in sales.

  • Content marketing
  • Data analysis
  • Design
  • Development
  • Advertising
  • Marketing automation
  • Email marketing
  • Search engine optimization

Content Marketing

To sell online your product content description must be well written to describe the problems and solutions that brought customers to your store to shop. That content that makes customers feel their problems are over, that your product is the answer to their need is the best and winning content. And there are those who are good at writing product content in the best ways that drives customers to buy without hesitation.

Data Analysis

Data analysts are becoming more relevant to online businesses than they had ever been. It’s now more important to mine and analyze customer data to help define marketing direction and appreciate the impact of existing marketing program. This has been the reason for the success of market personalization in eCommerce business that’s making Facebook and other social media platform help you to target just the right customers for your business.

Design

For eCommerce store, everything has to look it’s best design. Customers are going to assess the product quality by several factors, which includes the product image graphic, logo and website design. Everything to is visualized on your site tells a story to your customers. And it’s this story that would convince them to buy or skip to a competitors site. Pay close attention to who designs your graphics, product description page, and marketing materials.

Development

The internet is now a land of codes. One code error can take your store offline for days or weeks if you lack the expertise to fix code problems. The same way it can help simply how your store processes orders and delivers them faster. Having a coder is important to eCommerce business, just as a nurse is essential for someone with an ailment.

Advertising

Ecommerce advertising must be planned, created, purchased, executed, and measured. And it must be done in many channels, using many forms of media, including pay-per-click advertising on search engines and on social media sites, display advertising, native advertising, mobile advertising, video commercials, and more.

Your best route to faster sales is advertising. It should be well planned, tactically created to inspire customers to click the buy button. While the ad purchase must be approached to meet sales projection, executed regularly and measured to ensure each ad is producing the desired result. Using every media possible should be your goal.

Marketing Automation

Let me change the narrative a little. It’s stressful to keep repeating the same things every time. Sooner or later you will get tired and that would cause your sales to start dwindling. And you don’t have to do everything manually.

Take advantage of eCommerce automation processes, from order management, shipping, payments, to email marketing, social media advertising. You can automate any process in your eCommerce business to give you freedom to enjoy your success.

This will reduce your expenses while increasing your conversion rates. In some cases it can improve shoppers experience and boost average order value.

Email Marketing

In all the marketing approach for eCommerce stores, email is the most important tool for re-marketing. It’s one of the best ways to reach eCommerce customers. How healthy your eCommerce business is can be measured by the open rate of your email marketing.

However, to get the best out of your email marketing you must apply it with automation.

Search Engine Optimization

One question most eCommerce businesses in Africa are asking is, when I’m not advertising what happens to my business? The internet has a better answer to that. It’s called search engine optimization (SEO). Your eCommerce store must be search engine friendly.

Here are a list of SEO work for your eCommerce store:

  • Buy and install SEO tools
  • Find and remove duplicate content
  • Make navigation and UX design flawless
  • Use Google analytics and Google webmaster tools
  • Make your store design responsive
  • Ensure your store is constantly being indexed by search engines
  • Research and use the best keyword for your niche
  • Signup local search accounts to target shoppers nearby
  • Create only quality content for your pages
  • Use title tags better
  • Start building backlinks to your store

However, SEO work can be overwhelming for many reasons. You don’t have to understand everything about SEO. But understand that every aspect of SEO is important to eCommerce success. Then outsource these functions or hire a freelancer to do each job on a need to do basis.

Conclusion

My interest is to drive your eCommerce sales in a way you never thought possible. For you to even begin to dream that big, you must first change your approach. I didn’t just show you what to do. I showed you the best and perfect way to grow your eCommerce business in Africa.

Hire the skill set you need to upscale your store profit. Don’t think something’s are not necessary. If your eCommerce business is not wining everyday, it will soon fizzle out and lose all the customer patronage. My first eCommerce business failed because of some of these reasons I have shown you in this article.

And I’m not saying, start scouting for skills to hire. No, a thousand times no! There are already platforms that gathers the kind of skill sets you need to grow your eCommerce business. Your only job is to signup and start hiring the kind of skills you require, from as low as $5.

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Grow Your Business

5 Expert Reasons You Need Your Own Website

If you don’t own a website yet, this might be the best article you will ever read before getting one. There maybe hindrances stopping you from building your own website. I will help you touch base with some of them. Then, clear the air on why those reasons are too costly for you to keep paying.

A website is many things to a business online. In today’s world, you don’t have a business until you have your own website. It may sound strange, and you might even quote several businesses you know that doesn’t have their own website.

But do you know the huge benefits of having to own a website? Maybe you don’t, but I want to give you just a few to help guide you correctly.

How Website Works For Business

In today’s world, we practically live in two worlds concurrently. One is the physical world, while the other is the virtual world. This virtual world is the closet the natural man have gotten to the real application of the spirit world in the physical realm.

Your website is your virtual business in a physical world. It gives you unprecedented accessibility than the physical presence of your business. That’s why it’s too important to overlook or ignore.

Moreover, it works mostly without human interference. That means your business can be on 24 hours a day even while you sleep. So much gets done all day long, even without your physical attention.

Your website is your business in a virtual world that is larger and more accessible than your business in the physical realm. And if the virtual world is much bigger, why can’t pay attention to it more than the physical world?

Why You Need Your Own Website

A website is one of the biggest investment decisions for any startup. If you don’t plan for your own website, your business is not planning its growth future properly. Some have substituted having a website with social media pages. That’s a big risk.

In case you don’t know, many startups crashed when Facebook changed its algorithm. Businesses that earlier depended on Facebook, building large followers found the customers stripped from them and where told to reach those same customers on their pages by paying for adverts. The same thing happened with Instagram and the rests.

You may get started and build a sustainable online presence on social media but you don’t stake the future growth of the business on it. And there are reasons for that. You don’t have control over your presence on any social media platform. Whatever control you seem to have can be taken away without prior notice.

#1: Professionalism

Websites make businesses look trusted and big enough to do what they say they can do. It makes small business look competitive enough against well established brands. It’s your first step to getting the right customers who may not trust you if they had come to your physical office, to trust to do business with you.

Your company or business website makes you look professional and credible. It gives every business the opportunity to appear in their best form regardless of their financial status.

With your own website you can compete professionally with Fortune 500 companies and land yourself mega businesses.

#2: Easily Found On Search Results Online

The second important reason to own a website is even more important than the first one. It’s to increase the chances of appearing at the top of Google search result. Online visibility is the biggest investment any business can make today. And getting your website to appear in Google search results puts your business before many potential customers.

Yes, to show up in google search results is a big deal that should motivate you to get your own website today. You need to get more online visibility to attract potential customers.

But you will need to understand and follow search engine optimization techniques to prepare and position your website for Google search ranking. You can learn about SEO techniques from the articles on SEO. Starting from, SEO for Beginners.

#3: Your Competitors Have Websites

If there is one more reason to have your own website, it’s because your competitions have websites. If all your competitors probably have websites that gives them an edge over you. That’s not fair for competition. If you are wondering, what percentage of your competitors have their own website, you will be shocked to find out exactly how many of them.

But knowing that about 81 percent of the customers perform online search before making purchases that should let you know that your competitors won’t ignore this huge advantage either. As a startup, having your own website would give you an edge in the competition.

If you don’t have a website you will be losing out so much, and impatient customers may look elsewhere. Don’t forget that one of the reasons customers give for patronage is CONVENIENCE.

#4: Your Business Is Open 24 Hours

How much longer do you want your business open to customers? A physical location can’t give you that no matter how much you really want it. But your own website will never put up the closed for business sign. That means you are open for business round the clock.

Having a business website or eCommerce store means that you sell your products any time not just restricted to 9 to 5 working hours. If you are targeting a global audience that’s even more attractive. When your physical offices are closed in the country where you operate, your website is handling orders and requests from countries that are opened for business.

#5: Influence Public Perception

What customers think of you is based on what they know about you. Your website should be the most reliable information centre your customers should know. It provides social proof and controls what customers should know, think and share about your business.

You business website can influence customers perception by creating your own message, mission and personality in front of your target audience. You can also influence any negative publicity about your business in the press by feeding your customers with your own position on every issue affecting your company.

It’s how the public perceive your business would determine how much of their patronage they would bring to you.

Conclusion

Sometimes the reason you don’t have a website may not be because you don’t know the huge benefits. It may even be because you really don’t think that your business needs its own website. If you already have a thriving social media page, it’s easier to believe that it’s the same thing as your own website.

Other major reasons you don’t have your own website includes not understanding how to get a website. You think it’s expensive, beyond your finances to get your own website. But there are cheaper ways to get a website. You can also find cheaper website developers on Fiverr.

Please tell me why you don’t have a website yet. Maybe I can help advise you on smarter ways to get your own website designed for you cheaper. Drop me a comment in the comment box below.

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Grow Your Business

How To Manufacture Your Own Brand Products

Do you want to manufacture your own brand products? Manufacturing business may seem like a cost consuming project, but it’s not any more. I want to show you the simple to create and manufacture your own brand products now,

Before now, many entrepreneurs think manufacturing their own brand product is difficult. Well, from my observation and experience, it’s much more simpler than you think. I have done it several times and still do. It has been the success crest of many importers in Alaba market and International trade fair market.

So I have not only proved that it’s possible but that it’s also simple. I’m also going to show how you too can do it, in a precise and straight to the point writeup for even a newbie to quickly read through and begin to apply the steps successfully.

My name is Chinedu David and I’m a your brand product manufacturing consultant. Follow me as I show you all that I know about manufacturing your own brand products in a step by step guide.

Before You Start Manufacturing

Let me enlighten you on what’s happening in Manufacturing Business in Nigeria. There are different classes in product business as operated in Nigeria. The classes are Manufacturing, importation, logistics, distribution, marketing and sales.

You are either going to be involved in one of them or you can choose to climb the ladder till you get to the topmost, which is manufacturing. Most importers have moved into manufacturing because of its many benefits.

As a manufacturer you have the advantage of the monopoly of your brand. You gain a share of customers who love and buy your brand. You can control and determine, how, where, when and who gets involved in your product. Most importantly, you can make more money Manufacturing your own brand product.

However, what has dominated the manufacturing industry today is not factories but brands. There are more brands than manufacturing companies in existence. If you think what I’m going to show you is how to plan, buy and setup your own manufacturing equipments, you missed the point.

How Manufacturing Your Own Brand Works

These days, manufacturers no longer build factories. They only create and build brands, while they outsource the manufacturing of their products to big and established factories somewhere around the world; preferably in China.

You can also outsource to other manufacturers here in Nigeria. As long as the have the expertise to produce your product in the best quality you desire. You can use any manufacturer anywhere that’s cost effective and convenient for you.

The main work you have to do when Manufacturing your one brand product is creating the product you want and building the brand in the market. If you get the product right, with the brand perfect, then Manufacturing is just as simple as tap water.

Step One: Choose The Right Product

The main problem with picking a product to manufacture is picking the right product. This may seem the hardest thing to do, but this is the most important decision in manufacturing your own brand product. It shouldn’t be something you struggle alone to pick.

Your product would make or mar your manufacturing dream. That’s why it’s the most important step on how you manufacture your own brand product. Hiring a consultant to help you at this stage may be the right decision to make. If you get this right, you will have it easy pushing the product into the market.

The best products are not necessarily the product nobody else is manufacturing. In fact, it’s safer to manufacture a better version of what is already selling in the market than trying to introduce a new product that nobody knew before. Unless the new product is solving a major need that most people have and are willing to pay to solve it.

Also, your choice of product should be based on the solution it provides in relation to the vast number of people that it’s solving their problems. Its also better if the products would be in demand for a longer time. That way your success will not be cut short.

And if you are choosing products that are already being sold in the market, I will advise that you work on making your products better or finding out the solutions that the current product is not offering but are needed by the consumers and add them in your own product.

You can find many products available in the market to start Manufacturing your own brand. The key here is not really about the product but about your own brand. Look for a product with huge potential and produce it with your brand. Period!

Step Two: Create Your Brand

The brand is equally important when Manufacturing your own product. Remember, the key part of this manufacturing business is having your own brand. So, the brand part has to be done well. Branding is more than just having a a name and logo. It should have the right customer appeal that translate to sales.

It’s not that easy anymore to just pick a brand and starting building your product on it. There are a lot of factors that comes into play when picking a brand name. While you can choose any name you want, you have to consider if it’s available to register as a business name, domain name, for trademark, and if the social handles are not taken yet.

Until all that is sure, you cannot say you have a successful brand. That’s why it’s advisable to hire a consultant for the job. Although, it’s not a cheap option because you have to pay consultancy fees, but it’s better if you want to build a big brand.

Let’s look at steps you need to take to create a brand:

  • Choose a brand name
  • Design a brand logo
  • Buy a domain name
  • Create social media handles
  • Design your brand website

Choose A Brand Name:

But the first step in creating your own brand is picking the brand name. A name is key to branding. Choosing the right name with the right brand image doesn’t just come so easily. It’s involves lot of brainstorming and checking to verify its available to use.

In today’s world, it can take years to come by. However, the fastest way is to create a name that’s not existing. If you are looking for brand names like Google, Amazon, eBay, Apple, you may never find one.

After you have found the right brand name, register that brand for trademark. Don’t forget this part. If your brand is  ot registered, you may lose that brand to another person. And if someone else infringe on that brand you can sue them and get compensated.

Buy A Domain Name:

Another way to finding a brand name is finding the domain name first. This could be the fastest way to find your own brand name. A brand is as good as its domain name. But good domain names are not easy to come by these days.

Your best bet is to buy it from domain resell sites like SEDO. These domain reseller sites are marketplaces where those who have domain names for sale can offer them to those who want to buy them. So, you can browse the huge directories of these sites and pick what domain name you want.

Design A Brand Logo:

The brand logo is as important as the brand itself. Your brand image is the brands identity that defines how the brand is perceived by the customers. You have to do a great design to represent the brand well in the minds of the customers.

Hire a top designer for this job if you want the best design. Who does your design would determine the result you get. The bottom, get the right desire for your target customers.

Create Social Media Handles:

This shouldn’t have been a part of the plan. But in today’s business, not having social media handles may be a major disadvantage for your brand. Your brand has to be better represented on all the major social medias that your target customers use.

Design Your Brand Website:

Your website is where all the important things concerning your brand live forever. Your website is the life blood of your brand online. Anybody can clone your brand, but your website is one place your customers should find you undiluted.

It’s easier to design beautiful and functional website in today’s world. One thing you must focus on is to design a website that’s interactive and usable by your customers. If possible, include eCommerce capabilities to help your customers buy your product directly from your site.

Step Three: Find A Manufacturing Partner

After you have done all the needful for your brand identity, the next step would be to find a partner who can manufacture your products in the best quality and price. Don’t take this steps for granted. Some major brands before you are doing the same thing. Brands like Apple, LG, Binatone, Samsung, etcetera, all are using contract manufacturers.

They do not have a factory of their own. They all use manufacturing partners. You should follow the same step, especially if you are a newbie in manufacturing. But the process of choosing one may not be easy at all.

Sometimes you may need to work with a manufacturing partner to produce your first sample before you can conclude on starting the full production with them. And if you are interested in visiting their factories as well to be sure of what they are promising you, then you can visit before you kickstart the full production.

You can find manufacturers online on alibaba.com. You can also hire a consultant to help you get good manufacturers and create your first sample. This will save you from poor quality products. If your product is poor quality from beginning it may not win the customers patronage.

Create Your First Sample Product:

If possible, create your first and second samples. If you are going to hire a consultant, which I advise you do, the quality of your product is determined from the sample work done. And don’t mistake the name sample, it’s costlier to produce sample if you go about it the best way.

Let me explain briefly how this works and the impact on your brand product manufacturing. A sample helps you see how the final product works and what customers can expect from your brand.

However, after the first sample is done, it’s not the final product. You will need to hire an expert to analyze the parts used and recommend specific quality parts if required to ensure that your product meets quality standards.

Note that China is home for any kind of quality and if you don’t decide the quality you want, they will give you any cheap quality they can find to make more profit and that will harm your brand badly.

So, an expert will analyze the parts used and recommend quality or better parts and the manufacturer will now quote a new price based on the new recommendation. Then you will produce the second sample based on the quality parts recommended. The two is then tested to prove any difference in quality, functionality and what have you, in relation to the kind of product being manufactured.

Step Four: Start Your Production

Once the prototype or samples are certified ok, the next step will be to begin first batch of production. I always recommend that you do not produce more than five thousand units.

For some products I recommend just one thousand or even less. This is the job of a consultant to help you make this decision based on the type of product you are manufacturing. You should know that if you make a mistake of over producing it can harm your business and tie down your capital as well.

And being a new product it’s always wise to go with a small order at first. If you noticed I used the word start your production. That is because I know that it may take some time to produce and as a business you shouldn’t be doing nothing while your manufacturing partners are producing your first batch of products.

So, we will be discussing what you should be doing during this time in the next step.

Step Five: Start Your Marketing

Notice that I didn’t use the word advertising for a reason. Marketing and advertising are not exactly the same. While marketing has to do directly with markets, advertising deals primary with mediums of promoting your products.

So this time, I want you to focus on the markets that is how I want you to start your marketing. I will recommend you hire a marketing consultant for this job. For your brand products to gain instant acceptability and growth it needs grassroot guerrilla marketing strategy and not media hype.

You can decide how many states distributors you want at first or you can choose to cover the whole country. It’s entirely dependent on your marketing budget. Your marketing consultant would give you the cost when you are ready.

But the reason for this kind of marketing is to help make your products available everywhere and build a proper network of distributors and retailers in every city. You can even start getting orders before your products arrives into the country. That’s what I call success.

Step Six: Start Your Advertising

Now I can recommend that you give your online marketing a boast as well. That will increase your online presence and start bringing in sales. Remember you have distributors and retailers nationwide already or in the cities you marketed to. Now, it’s your job to promote your products and direct your customers to your retailers location nationwide.

This kind of advertising has two impact, it will make your retailers who have not stocked your products to quickly rush to the distributor to buy stock. Also the same for the distributors, once they keep getting order request from retailers they will quickly place more order.

You know distributors order is big. So each time customers go asking for your products you will get a big order from the distributors. And once they have ordered they have to sell them.

The other thing is that customers will already be able to get the product in their city and save themselves the cost of online shipping if they have to only get your products online. And if you marry the two very well, your. Haines will grow very fast in such a short time than you can imagine.

Conclusion

Finally, this is supposed to be just about manufacturing your own brand product but I have also covered marketing strategy. If you want to progress and take advantage of what I have shared with you here or even ask questions use the comment box below or email me directly.

 

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How To Reduce LPG Setup Cost In 2021

Every year, as activities begins to wind up, most people begin to make plans for the coming year. And as most people also lost their livelihood due to the pandemic, there’s limited funds available for startups of any business. As you plan to invest in cooking gas plant in this new year, I want to show you how to reduce LPG setup cost.
It’s okay to start early making plans for the new year. The pandemic may seem like a bad omen, but it also exposed things in the LPG plant business. As investors tries to save cost of setup, new revelations of doing things are also emerging.

One of it is how to reduce LPG setup cost. This will change the way you see LPG cost analysis in the coming year. Generally, LPG investment cost went down as against what it cost prior to this point.

What LPG Setup Cost Was Reduced?

There are three main cost factor in setting up LPG plant in Nigeria. Let me list the three in no particular order:

  1. Land or Location
  2. DPR licensing
  3. LPG plant equipments

These three are the real cost factor in LPG plant setup. You can see how they affect the business and their different roles as well. Let me take each one briefly to help you recap it better.

 

Land Or Location:

This one is what determines the profitability of the LPG plant. You can’t trade this one for anything else. The best location will always win in this business. That’s why you should invest in the best location.

That starts with buying land in a choice location. However, whether you buy in a choice location or not, it’s recommended that you conduct a location assessment. This report gives you clear insight on the viability of the location for LPG plant setup. A proper location assessment would cost between N200,000 to N300,000 depending on the part of the country you reside.

 

DPR Licensing:

This one is just the referee of the business. Without them you cant even start the business. So, you shouldn’t try to outsmart the referee for any reason. Get all the necessary approvals, and follow proper procedures as recommended by DPR.

If possible, hire a consultant to handle your DPR licensing process. Depending on your location, a consultant can take between N300,000 to N800,000 to help you process your DPR licensing.

 

LPG Plant Equipments:

Now, the last one on the list is even what makes your business work. It’s the soul of your business. Without this you don’t have a gas plant. You may have all the best idea on how to setup LPG plant but if you don’t get to the point where you build the gas plant, you don’t have any business.

Who builds your equipment and the cost implication is one factor you can control. And there are many options to this regard. You can choose to buy used or brand new equipments, Chinese equipments, or European equipment for your setup. Whatever you finally decide to choose is good. You only need to weigh its pros and cons.

The best LPG equipment is not just the cheaper one but the equipment with a longer lifespan. Remember, it’s going to be used on a daily basis. There would be normal worn and tear. The longer it takes for major tear and worn to show up the more cost it saves you.

 

How To Reduce LPG Setup Cost

So, it’s important how you handle the costs associated with the setup. Although, you may not be able to determine the kind of cost you get when buying a land for the gas plant location. This one maybe beyond your control. If you happen to save cost during the process, good. But don’t expect anything out of the ordinary.

The two known areas where cost is possible now is both DPR licensing and plant equipment purchase. Of course, DPR license was reduced from as much as N3.5 million cost implication to now around N2 million by DPR. That was government own way of deepening the increase in the number of gas plants in the country.

When it comes to LPG equipment, nothing actually changed in price. Yes, it wasn’t like price suddenly dropped. If there’s anything strange about Nigerians commerce is increase in dollar exchange. And that further increased the cost of LPG equipments. So, what really changed?

Since cost of LPG setup increased due to the exchange rate, most investors are looking at directly importing LPG plant equipment themselves, instead of buying from local dealers. This will reduce LPG setup cost by almost 50 percent.

 

Importing LPG Plant Equipment

Some people may become apprehensive when the issue of importation comes up. They start thinking of dollar exchange, shipping fee, duty fees, clearing fee and wharf rat (if you know what that means). But all that shouldn’t bother you at all. The idea of importing your gas plant equipment is to reduce LPG setup cost.

However, if you follow my guide you will have a successful import transaction. So, let’s get started. Your gas consultant should also be able to help you with reputable LPG equipment vendors to import from.

The first thing to consider when importing your LPG plant equipment is the supplier. In this case, we are referring to foreign manufacturers. You can find them in either China, Turkey, Germany and some other European countries. I strongly recommend that you buy from either China or Turkey. Most of them advertise online on social media as well.

 

China Versus Turkey LPG Equipment

I think the difference between these two are not that much, but I will try to refer to those things that really matter in this business. If you are importing your LPG equipment from China, price maybe cheaper than what you get from Turkey. So, if the cost is of major interest, then China is your target for a supplier.

Turkey is also cheap considering the cost here in Nigeria. And there is no much price difference between China and Turkey prices. It’s just some fraction of change. So, it might not make much difference cost wise if you buy directly from either China or Turkey.

However, when it comes to warranty, China doesn’t give any. You must know that what you paid is at owners risk. But with Turkey LPG equipment you get up to 20 years warranty on the tank itself, 2 to 3 years on the dispensers and 2 years on the pumps. You should discuss all these issues with your supplier when ordering. It’s always better to involve your gas consultant when doing this negotiations.

Shipping, Clearing And Transportation

Once you have ordered the LPG plant equipment from either China or Turkey as I advised, your next line of action would be to ship it to Nigerian and transport it to your plant location. You should put the cost implication in your advisement.

Once you have ordered the LPG plant equipment from either China or Turkey as I advised, your next line of action would be to ship it to Nigerian and transport it to your plant location. You should put the cost implication in your advisement.

Let start by looking at shipping cost in this regard. There’s no fix shipping cost, since size and weight is under consideration when shipping LPG equipments. But one thing is certain, the cost won’t be so cheap but it won’t be too high to cost more than it would cost if you had bought the equipment from local vendors.

Remember that those local dealers also shipped it from overseas. They paid shipping and added the cost in their equipment sold to you. So, whether you bought locally or imported it yourself, you are still paying for the shipping.

Another cost input is clearing fee and transportation to your plant location. Yes, after you paid import duty you still need to move the equipment to site where it will be finally installed. Duty is charged by custom and a haulage company would be needed to transport it in a big truck to your location.

 

Installation, Maintenance And Training

Now, who installs your equipment is critical. Remember I advised you earlier to hire a consultant during the discussion with the equipment supplier. A consultant may charge you N50,000 to N200,000 to be involved in this kind of negotiation. The consultant would ensure all the components and installation gadgets are included in the shipment.

Another way to go about this is to hire a consultant who has technical installation know-how. That way you hire the consultant both as an expert and the equipment installer. Because the challenge of importing LPG equipment is the installation. Don’t trust most of the so called ‘engineers’.

Different LPG equipments comes with different design specifications. An engineer need to understand the particular installation guide to do an efficient job installing it. Remember, this is gaseous product and should be handled with the strictest care.

Also, the maintenance is another thing. Outsource it to the right consultant or company. You need prompt response when there’s any maintenance issue. That also includes training your initial workers during takeoff.

 

Conclusion

Starting a cooking gas plant is cost demanding. That’s because you have to deal with land owners and at the same time equipment vendors. These are what drives up LPG setup cost. If you can acquire a less expensive land in a viable location and reduce the cost of LPG equipment, your startup cost will be minimal.

Moreover, you should engage the services of a cooking gas consultant when executing your LPG plant project. In the multitude of counsellors there’s safety. But the most important safety here is the installation process, which your experienced consultant would help you achieve successfully if you carry him along with your LPG equipment importation.

 

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