nonyjay:
kabarka, et al,

I want us to do a case study with our factory. I have been in business for 3 months and noticed that profit is low. the following are my costs. pls help analyse what we can play with to up profit. note: I ve adjusted our nylon size to barest minimum. also my area we sell for 11 for 500 naira: if you don't sell like this no one will buy. location: Ogun state near Lagos.

operator 4 N per bag

driver. 3 N per bag

motorboy 3N per bag

nylon: 470 per kg

1 kg : 25 bags

production fuel: 5N per bag (calculated) we are always on gen as light is low voltage all the time less than 100 v. my 5000 watts stab unable.

motor fuel: average 3 N per bag(calculated) varies depending on vehicle used)

packing bag: 3000 per bundle.

I have presented ours as case study so all can learn and profit.

Bros this is a case study indeed... You are just starting and you paying such huge amount on workers If care is not taken you might end up not been able to meet up with paying your workers and am sure you know what that implies?

Seems everyone is complaining about the price of N500/11 in that your area.
But I would suggest you called a meeting with your workers and let them know that things ain't good.. So it's preferable to be paying them on contract basis or preferably on target. (base on sales)
Especially your driver. You shud know that the more the sales the more the profit.....
All the best

kloser:
Pls can someone recommend a good sealing machine engineer to fix my machine pls,location is lagos, machine is dingli . Thanks

I know a man who is a specialist in Dingli machine and trustworthy....
You can give a try..
Mr Ibro +2348034285950

Thanks for the info on the thread. I am interested in setting up a pure water factory. Please kindly mail me needed info. Mathswell@gmail.com. Thanks.

Pure water biz is very lucrative,but for a starter you must have other source of income if you really want to remain in the biz...

I'll also advice you start with a new bus or truck,if u have the money...

Hi y'all,
I have access to a Pure Water factory located on. Lasu-Isheri road (close to igando area).
I seek partnership I to run the factory.
Though the factory has been approved by NAFDAC, it still needs to be renewed along with the equipments .

nonyjay:


low voltage from NEPA
1 machine dingli
gen is very able. no issue . 7.5kva. but for fuel consumption

i understand now.you make little money(though not bad as a beginner) @400 bags/day which will take a long time to produce with 0ne machine.
You shouldnt be paying workers on commission as you do.
If you have read my ebook,i recommend people starting with salary workers until you balance.
You must stop those commission now,its outrageous.

now help me to understand,is your gen petrol or diesel.
it appears to me you are using petrol.

pix

kloser:
Pls can someone recommend a good sealing machine engineer to fix my machine pls,location is lagos, machine is dingli . Thanks

call 08188958812. I know a great engineer.

kabarka:

i understand now.you make little money(though not bad as a beginner) @400 bags/day which will take a long time to produce with 0ne machine.
You shouldnt be paying workers on commission as you do.
If you have read my ebook,i recommend people starting with salary workers until you balance.
You must stop those commission now,its outrageous.
now help me to understand,is your gen petrol or diesel.
it appears to me you are using petrol.

thanks chief. gen is petrol. pls send me the eBook nony_jay@yahoo.com

@nonyjay's factory case study 1
now that is why your operation is dangerous for you,so stop and review your operation.
however ,we have to analysis your operation here for all to benefit.
let's start now.
as a newcomer in 3months,,selling 400bags.you are doing fine and will go far.if you can get that gen in the pix above,it will help you.

it is unfortunate 11bags is being sold for 500 but let's work it out.
let's assume you sell 440bags per day.
if 1kg gives 25bags.
it means 16kg will produce 400bags which cost 7520.
and when you sell you realise 20,000.

now let's go to expenses.from your calculation
4+3+3+5+3+3=21naira
Remember,this is without vehicle maintenance.
21 *400 =8400(cost of production + cost of selling).

Total cost= cost of material + (cost of production + cost of selling)
=8400 + 7520=15920

Profit= 20,000 - 15920
=4080
do you now see how cost is eating up your gain?
This is for ONE day.This implies that in one month
Cash income=N520 ,000
workers take away=N413,000
YOU=N106,080

Do you think this fair enough?
large sum of money passing through your hand only for you to hold so little.

The big question is WHAT DO YOU DO?

Nice one..

11bags is sold for #600 at my area and driver is paid #3 per bag, motor boy #1 per bag or #1.50 then packer #2 some compainies give #2.5 or #3 while the operation is salary base, which is within #20-#30 depending on how you negotiate...

The thing that will really eat up your gain is diesel and maintaining your truck,especially if they are not new ones..

If you're using the mikano gen then 30 litres everyday,starting from 8am-5pm...


If you're just starting this business,you must not depend on it yet.

@all, pls how much is enough to start the business, got a plot for it already. Thanks!

@kabarka pls where can one buy the gen pictured and at what price.thanks

To answer the question

nonyjay:
pls help analyse what we can play with to up profit.

@nonyjay's factory case study 2

let's take it one by one.

Production fuel=N5(calculated)
for 400 bags,you spend N2200
and since the machine produces approx 2000 satchet per hour.
it then means 400 bags will be produced in 4hrs.This is the current condition of your factory.

now look at the pix of gen above. Very strong and reliable. it is popularly called ELEVEN FIFTEEN (1115) in the market.The price hovers around N130,000
This gen carries 2-3sealing machines at a go and could use 10 liters of diesel per day (8am-5pm) with NO STABILIZER. You see the advantage .
how much is 10liter of diesel sold in your area?

@nonyjay's factory case study 3
Next is motor fuel.
N3/bag means you spend N1200 on 400bags if the water sold out.what of otherwise? This means you could be spending more if there is return.
However your spending here is not worrisome,it indicates to me perhaps your market is relatively near your factory or you have very good roads or your zone is traffic free.

hence to ensure that the status quo remains and does not increase,,
1 ,make sure your carburetor is working efficiently
2,make sure your workers have extra plugs in case of plug failure.
3,make sure your exhaust does not blow.
4 , pifry

Pls house, I need urgent assistance from operators from Lagos,Ota and environs to pls help me with a link to a factory where I can buy a very good/ near perfect packing bags.I actually base in Abuja and I now sell packing bags,filters n some of d sealing machine parts but for some time now my packing bags r no longer of a good quality and within 4 months I hv changed from 4 different producers because of dis same reason but I heard I can get a good one in those areas that's why I decided to come ask my question here since we hv end users and experienced people in d biz here.pls ur opinion is welcomed.thanks

if u are in Abuja or maraba axis of nasarawa state, there is a pure water factory for sale/lease,d factory is functional n u don't need to hustle for customers because d product is already selling

Pls I want to know waht it takes to be a pure water distributor. Is there profit in it

kabarka:
pix

@kabarka, pls what is the kva of that generator you posted and how many phase is it?

Damolux01:
@all, pls how much is enough to start the business, got a plot for it already. Thanks!

You will need btw N1.5-N2m to commence if you are using public mains water supply source. If its borehole you will require a capital outlay of about N4-N4.5m.

Water not get enemy, I like the biz, but am waiting for my time to do, Bcoz God time is the best

kabarka:
Yes am already into it for about six years now.We have  one ford(the very first) and two mitsubishi canter.
Their capacity :ford- 240 bags
mitsubishi canter:600 bags max each. Meanwhile we have scrabed three ford buses.All move out every morning,depending on the market,they can go 1,2,3 times each

Hello Kabarka, you are really doing great work and hope puttting up something soon. Please can you assist me by sending your ebook to me (honjoyglobalservices@gmail.com). I will like to go through it. Thanks

kabarka:
@nonyjay's factory case study 4

OrigamiIII:


You will need btw N1.5-N2m to commence if you are using public mains water supply source. If its borehole you will require a capital outlay of about N4-N4.5m.

How much are you budgeting for the borehole?

Nduwin:
if u are in Abuja or maraba axis of nasarawa state, there is a pure water factory for sale/lease,d factory is functional n u don't need to hustle for customers because d product is already selling

can we discuss please shawlerinc@gmail.com

mkmyers45:


How much are you budgeting for the borehole?

@origmill
Thanx for your answer but actually this is why my answers to some issues are not always straight.
The truth is that cost of digging borehole differs through out the country.for example cost of borehole in enugu differs from rivers state.
as a result you just cant assume starting cost to move from 1.5-2m to 4-4.5m.this is my point.

Pls. Anyone who knows of a pure water factory in Lagos State that is up for lease should contact me on 08038495945. Thanks

ikechichum:
@kabarka - i am into d business, i have 5trucks, 2 of 600bags capacity, 2 of 300bags capacity n 1 of 500bags, d main problem i av encontered is dat of cost of operation, 1stly i spend close to N18000 weekly on diesel for my generator cos der is neva light, 2ndly- the cost for nylon printing is reali high, if you have any solution to these problems, pls educate us ,
p.s- i stil make a profit of about 100,000 every month, but that is 2smal considerin the amount that goes in everymonth

No business is easy in Nigeria.

5 trucks, so many staff, so much diesel and logistics, so much initial capital investment, yet N100,000 per month.

No wonder bankers will never like to resign..

I'm about to start operation of pure water production in Obasanjo farms area in OTA.Please how much can I pay a driver and a motor boy per bag in that area.

Secondly,How much can I pay the packer of sachet water either monthly salary or commission.


Please I need sirs I need your input and advice.


Thanks

Please how much can I get this RO pump in the picture?