Sorry guys it has been hard out there, that’s why I couldn’t bring this up as early as I promised. I was having a whole lot of load on my hand. But here I am now, I’m quite free for regular updates now on the platform.
In my last post, I shared an important update on how to start a palm oil business. In that post, I stated that the minimum amount needed to start a palm oil business on your own is 100k-300k in Naira. Furthermore, I stated that the business can also be started without any investment. Yes that’s correct and I’ll show you in this post, some businesses can be easily started without you having to invest anymore and palm oil businesses fall into that category of businesses.
Good news for those with little to no money but who have an interest in the palm oil business. Today I bring you a means of making money from the palm oil business without investing 10kobo.
I will like to keep this post straight to the point, I don’t know yet if it’ll be short as well but we’re only going to hit the vital parts straight on the head. Let’s Go.
How to start a palm oil business without investing in it.
Become an affiliate/intermediary. Simple, many producers have products but there are no buyers or companies to sell to. Here are your chances, go in search of companies interested in palm oil. Go to villages and meet with local producers or large producing companies and make them a deal of getting them customers for their products. Get their prices per liter or 25 liters known as full 25 liters gallon full with oil. Negotiate the price and agree with the producer.
To search for a buyer. There are hundreds of companies looking to buy palm oil for their production daily. Have a meeting with buyers, discuss price and delivery terms and ensure you make a reasonable profit from the deal. Most times you’ll be offered to deliver in tons, in case you don’t understand what ton means here’s an explanation.
1 thousand liters is 1 ton, some companies may ask you to deliver up to 30 ton weekly or even more.
Also, discuss terms of payment, if you newly started working with a company, you won’t gain so much trust that money will be given to you before delivery so what you should do is ask them to take care of the logistics from the production place to their company. They can decide to give you the money for the logistics cost or tell you to bring the oil and they’ll pay the logistics company or driver upon arrival. Whichever option they choose, it’s better for you. All you need to do is go and convince your producer to supply the palm oil.
If you have a long contract with the company buying then palm oil, then you’ll be making a huge amount of money weekly if you have a fair price deal with them. I would suggest you secure 100 naira per litter. This means you make 100 naira for every litter. You can make this work if you have good negotiation skills, you bid down the producer price and also bid up the buyer price. Sweet mouth, smiles quality promising can make it possible. At this point let’s do a small calculation of what you would be making if you’re able to seal 100 per liter deal.
Let’s say you make 100 naira per liter and then sold 10 tons weekly due to low product availability. That’s NGN100 x 10,000 = NGN100,000. You can see your profit will be 100k weekly which is very fair earning in a country like this where there’s no job.
We must also admit you’ll make some expenses, you rest assured of 80k weekly if you can be able to follow up on supplies.
Mistakes to avoid
One of the biggest mistakes anyone can ever do in this business is supplying bad or low-quality palm oil. Since you’re not a producer, it’s quite difficult to avoid quality friction mistakes however proper supervision of what you’re delivering and the producer you’re buying from can minimize the chances. Your chances of losing your contract are high if you ever supply bad/low-quality palm oil. Another mistake to avoid is bidding too high for big profit’s sake. Note that you’re not the only one looking for the chance of supplying the company. Like they use to say, take it here. Companies want good quality at the most minimal price. Another mistake again is disappointment, if the company your supply starts doubting your competency then you’re at the point of losing the contract. don’t fail the company you’re supplying, some companies may decide to work with just a few of you especially if your quality of palm oil is at top notch. Disappointing them will also affect their production and might cost you your contract.
How to sort for companies to supply
So many people still go online asking google which company can supply palm oil. Hmmm, with this you’ll not get a single company to supply to. Google will just be turning you around the web without any good effort. If there happened to be anything like that, do you know how many people search for that daily? so you think there’ll still be a chance for you to supply? No, that’s not the right way to get a company to supply. Here’s a simple secret on how to sort for companies that buy palm oil.
The First thing is to do your research for products palm oil is used for in general, you may see bar soap and so many other products palm oil is used for. Now move your search to look for each of those product manufacturers in Nigeria. Get their company name and search for their products, on product ingredients look for palm oil. If you find palm oil as one of the ingredients, whoops you’re close to shooting your shot. Get their contact email or WhatsApp number, if you’re not far from the company address then write a proposal letter and submit it to their office. If your location is far then email and WhatsApp will be fine. First, write a well-composed proposal letter and submit it to their email then follow it up on WhatsApp or any of their social media handle. You can only place a call to them when you have done all and yet didn’t still get a reply. This is the best way to get supply contracts directly with companies that can buy even 50 tons weekly.
I never intended for this post to be this long but at this point, I need to bring it to an end. I’m feeling dizzy already, cause I’m writing at night. If you need more details or have questions, kindly drop your comment in the comment box below.