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5 Simple Truth About Cement Business - Business (3) - Nairaland

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Re: 5 Simple Truth About Cement Business by Dikechigozie: 10:21pm On Jul 06, 2016
How do I get a genuine distributor?
It seems the people am about to deal with are fraudstars cos the are giving me #1000 per bag
Re: 5 Simple Truth About Cement Business by lakaplonto: 10:22pm On Jul 06, 2016
Titto93:

* The company sets monthly target for distributors.
*Once you reach your target your commission is guaranteed
*Thus, distributors sometimes reduce certain amount esp. towards the month end to ensure they reach their target in order to benefit in the commission
if a company sells at 2000 naira for instance and d distributor sells at 1970 to retailerlers. For every bag sold the dealers loose 30 naira. How will d distributor make profit at d end of d month since he looses 30 naira for every bag sold. Am curious I really need to understand this.
Re: 5 Simple Truth About Cement Business by lakaplonto: 10:23pm On Jul 06, 2016
Titto93:

* The company sets monthly target for distributors.
*Once you reach your target your commission is guaranteed
*Thus, distributors sometimes reduce certain amount esp. towards the month end to ensure they reach their target in order to benefit in the commission
if a company sells at 2000 naira for instance and d distributor sells at 1970 naira to retailerlers. For every bag sold the distributor loose 30 naira. How will d distributor make profit at d end of d month since he looses 30 naira for every bag sold. Am curious I really need to understand this.
Re: 5 Simple Truth About Cement Business by Titto93(m): 10:33pm On Jul 06, 2016
Flameneo:


First let me start with this info that a trailer load of Dangote cement contains 600 bags and not 900

The price you sell in your state is determined by the distance from the Factory.

The price they sell in lokoja is cheaper compared to the price they sell in Abuja, and that of Abuja is cheaper than the price they sell in Kaduna. It goes on and on like that

The amount you get your trailler load depends on who you take as ur dealer. Its good you have a honest dealer.

Like me,I pay my dealer only when I receive the trailer load and offload it. Other times I call him to inform him it will take a week b4 he receive his money

Be careful of the dealer you deal with because there is what is known as Rebag.
None of your fact is correct... the truth is, you're not into the business

* Dangote no longer sell 600 bags, its over 5 years he gave out those trailers that carry 600bags... last year October, he bought 2,000 trailers that can carry 1,200 bags but due to certain reasons he reduced it to 900bags. Dangote, BUA, Ibeto, Unicem factories can never carry less than 900bags... But the distributors can use those lesser trailers to carry 600bags to retailers

*Dangote has 3 plants, Obajana, Kogi state supplies to south south and southeast... Gboko, Benue state supplies to North, while Ibese, Lagos supplies to southwest and other parts of south.
That's why I said the price difference is negligible

*No dealer can sell you cement on credit...
Nothing like paying on delivery, it's pay before service... Be honest or silent

11 Likes 1 Share

Re: 5 Simple Truth About Cement Business by Titto93(m): 10:38pm On Jul 06, 2016
lakaplonto:
if a company sells at 2000 naira for instance and d distributor sells at 1970 naira to retailerlers. For every bag sold the distributor loose 30 naira. How will d distributor make profit at d end of d month since he looses 30 naira for every bag sold. Am curious I really need to understand this.

The reduction of price normally comes towards the end of the month, the reason is simple, to reach their target.
Thus, the commission they get once they reach their target is far bigger than the little they might have reduce to get to that target

5 Likes

Re: 5 Simple Truth About Cement Business by Titto93(m): 10:44pm On Jul 06, 2016
Dikechigozie:
How do I get a genuine distributor?
It seems the people am about to deal with are fraudstars cos the are giving me #1000 per bag
That's the reason for this thread...
since 2005, Dangote has never sell cement below #1,200, not to talk of #1,000. it's laughable.
If you can't trust me, you can go straight to any of these factories:
Gboko, Benue state,
Obajana, Kogi state
Ibese, Lagos state

1 Like

Re: 5 Simple Truth About Cement Business by silverspringle(f): 11:01pm On Jul 06, 2016
nkemdi89:
Discouraging truth, for those who want to go into cement business let me tell you the truth.
1 you can start with as low as fifty bags.
2 you may not necessarily need a shop just get pallets and trampoline.
3 get a supplier who buy directly from the company.
4 situate your business in areas havin g lot of construction works.
5 watch out for competitors especially in lagos as an average yoruba seller consider good customer relationship than profit, they can sell a bag for little profit.
6 mobility is very important, wheel barrow or van as most customers put the bulk of responsibility in supplying the goods on the traders.
7 don't involve yourself in cheating customers by reducing a sand bag to refil.
8 sell more than one product as bricklayers consider some good for plastering while some for moulding.
9 have more than one supplier as alhaji or baba rasheed may disappoint you.
10 reach out to builders, contractors and politicians for marketing.
thanks a lot... What will be your advise to someone that wants to start up a cement business in owerri. Like where to get a genuine distributor? Which of d factories is closest to d east? What to expect?
Re: 5 Simple Truth About Cement Business by mamakendra(f): 11:09pm On Jul 06, 2016
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8 Likes 1 Share

Re: 5 Simple Truth About Cement Business by fairheven: 11:10pm On Jul 06, 2016
kinsooo:
Are u a distributor or retailer ?Here in Aba we buy Dangote from distributors at almost 1460 naira per bag and Unicem same amount.

I noticed cement is relatively cheaper in the east.
Re: 5 Simple Truth About Cement Business by illuminaty(m): 11:14pm On Jul 06, 2016
mytime24:
can i drink it like ijebu garri angry
....Lwkmd!
Re: 5 Simple Truth About Cement Business by KingsleyCEO: 11:31pm On Jul 06, 2016
OP this post is short and the message is also straight. I just wish others can learn from you.

1 Like

Re: 5 Simple Truth About Cement Business by Sammyashol(m): 12:09am On Jul 07, 2016
Titto93:


If you get shop in a good site or along the road... you have enough capital (like 1.5million - 2 million)... you're known by your neighborhood
Then, you're good to go
Noted... Thanks
Re: 5 Simple Truth About Cement Business by SirAweezy(m): 12:41am On Jul 07, 2016
OP your Number 1 is a big lie... I am a distributor (though it's a part time thing) you can purchase a 900 bag 1 trailer load my friend I have done it several time to Lekki county from sapati.
Re: 5 Simple Truth About Cement Business by zeberebe: 1:33am On Jul 07, 2016
Titto93:
I have seen several scam advert about cement business. Don't be deceived, I'm into the business and I can testify the truth. I don't have time for long post but let me briefly but distinctly highlight 5 points used to deceive people about cement distributorship or supplies.

I'm into cement business, all you said above is a typical LIE.

1. You can never purchase only one trailer of 900bags from dangote cement factory as a distributor

2. You can never get 1 bag at #1000 no matter the quantity you want.

3. You can never buy on credit from the factory

4. Distributors earn their income from monthly commission they get from the number of trailers they sell per month

5. Distributors sometimes sell cheaper than factory Price, this is to ensure they meet up to their monthly expectation.
Re: 5 Simple Truth About Cement Business by zeberebe: 1:34am On Jul 07, 2016
Titto93:


currently, The company sell to distributors @ #1,300,000

distributors sell to retailers @ #1,330,000 for 900bags, including transportation (you can do the maths now)

Retailers sell to consumers @ #1,600 per
bag

Note: Distributors makeup their profit at the end of the month, after calculating the number of trailers they sell for the month
Re: 5 Simple Truth About Cement Business by Titto93(m): 1:46am On Jul 07, 2016
SirAweezy:
OP your Number 1 is a big lie... I am a distributor (though it's a part time thing) you can purchase a 900 bag 1 trailer load my friend I have done it several time to Lekki county from sapati.
What's the point in purchasing one trailer from the factory when you can get it cheaper from distributors, since you have no plans to reach a monthly target of about 10 trailers and above...
Now you see why it's of no value buying one trailer from factory?

1 Like

Re: 5 Simple Truth About Cement Business by zeberebe: 1:54am On Jul 07, 2016
Adesiji77:
Noted. Lol @"I don't have time for long post" cheesy
Re: 5 Simple Truth About Cement Business by zeberebe: 1:58am On Jul 07, 2016
mytime24:
can i drink it like ijebu garri angry
Re: 5 Simple Truth About Cement Business by Edubrazilnwa(m): 1:59am On Jul 07, 2016
kinsooo:
Are u a distributor or retailer ?Here in Aba we buy Dangote from distributors at almost 1460 naira per bag and Unicem same amount.
bro I'm in Aba and will be willing to learn this trade with the hope of starting mine soon don't knw if you will be willing to teach me more....God bless
Re: 5 Simple Truth About Cement Business by jendy36(m): 2:31am On Jul 07, 2016
Titto93:

What's the point in purchasing one trailer from the factory when you can get it cheaper from distributors, since you have no plans to reach a monthly target of about 10 trailers and above...
Now you see why it's of no value buying one trailer from factory?

Nice one OP. What are the different monthly models and how much they pay as commission per truck?
Re: 5 Simple Truth About Cement Business by einsteino(m): 6:42am On Jul 07, 2016
B4bestbrain:
Nice one, but please can we talk about the standardization here so that people will become aware of what they are really buying especially now that houses are collapsing like no man's land.

Dear distributor have you ever bothered carrying out sample test on your own to confirm the exact product that puts food on your table so that you can proudly live for it any day any time or we are just after the money we make out of it.

I believe that Nigeria will change for better one day with the likes of Dr. Dora Akunyili of blessed memory and some one if not many will be held responsible for services rendered to unsuspecting masses.

Nigerian youths, please stand up for your rights now else there will be no place to call home in the near future. Be wise!


The problem most times isnt cement, the problem is we build blindly. Structural design calculations are meant to be carried out for each house before construction, there are several grades of cement as well as several grades of steel. Each can be safely used so long as the engineer uses that specification to carry out his structural design. The main issue is that folks go to site and do the rubbish they call building by experience, most of these experience is quackery. Our building approval offices are a beehive of corruption, they just collect money without caring to cross check the structural design calculations that is in the few times people even submit one. Then on site, no one cares to look at the structural detail drawings. It is madness all round except in constructions handled by renowned engineering firms. So for a very long time to come we would use poor quality of materials to shift the blame, it would save our face for ages to come in Nigeria but overseas you dare not. If a building goes down, the engrs must explain and adequate test and review of their design calculations would be done, if found culpable they would serve jail time. Simple as that. Oops i forgot this is a country were bricklayers are called engrs. Lolz

2 Likes

Re: 5 Simple Truth About Cement Business by uboma(m): 6:55am On Jul 07, 2016
Theoflux:

Mtcheew... my own business be sey I go build house. Dangote just prepare 3 trailers of cement wait me.


What kind of building do you want to erect with 3 Trailer full of Cement?

1 Like

Re: 5 Simple Truth About Cement Business by bigboa: 7:32am On Jul 07, 2016
Try Lafarge Cement. Much better.

1 Like

Re: 5 Simple Truth About Cement Business by Titto93(m): 8:30am On Jul 07, 2016
jendy36:


Nice one OP. What are the different monthly models and how much they pay as commission per truck?
once you cross the threshold, the commission ranges from 100k to 150k
Re: 5 Simple Truth About Cement Business by Rexceedo: 10:49am On Jul 07, 2016
kinsooo:
Are u a distributor or retailer ?Here in Aba we buy Dangote from distributors at almost 1460 naira per bag and Unicem same amount.
I wanted to ask this same query.
Here in Enugu Kenyetta I bought @ 1,315000(1462/bag) yesterday.
Re: 5 Simple Truth About Cement Business by soulbrother(m): 11:18am On Jul 07, 2016
Titto93:
I have seen several scam advert about cement business. Don't be deceived, I'm into the business and I can testify the truth. I don't have time for long post but let me briefly but distinctly highlight 5 points used to deceive people about cement distributorship or supplies.

I'm into cement business, all you said above is a typical LIE.

1. You can never purchase only one trailer of 900bags from dangote cement factory as a distributor

2. You can never get 1 bag at #1000 no matter the quantity you want.

3. You can never buy on credit from the factory

4. Distributors earn their income from monthly commission they get from the number of trailers they sell per month

5. Distributors sometimes sell cheaper than factory Price, this is to ensure they meet up to their monthly expectation.

I am supplying 200 tomorrow,can I get larfage for 1,400 or 1450
Re: 5 Simple Truth About Cement Business by Endi(m): 11:41am On Jul 07, 2016
kinsooo:
Are u a distributor or retailer ?Here in Aba we buy Dangote from distributors at almost 1460 naira per bag and Unicem same amount.

Do your math. 1330000 divided by 900 gets
you almost the same figure you peddled.
Re: 5 Simple Truth About Cement Business by Titto93(m): 12:03pm On Jul 07, 2016
soulbrother:


I am supplying 200 tomorrow,can I get larfage for 1,400 or 1450
No... but you can get @ #1,500 or #1550 from distributors, then u add transportation fare to ur location
Re: 5 Simple Truth About Cement Business by igbanbajo(m): 2:12pm On Jul 07, 2016
Titto93:


currently, The company sell to distributors @ #1,300,000

distributors sell to retailers @ #1,330,000 for 900bags, including transportation (you can do the maths now)

Retailers sell to consumers @ #1,600 per
bag

Note: Distributors makeup their profit at the end of the month, after calculating the number of trailers they sell for the month
Re: 5 Simple Truth About Cement Business by Theoflux(m): 3:36pm On Jul 07, 2016
uboma:



What kind of building do you want to erect with 3 Trailer full of Cement?
Like the half or quater of Micheal Jackson's mansion.
Re: 5 Simple Truth About Cement Business by AssoJnr: 4:57pm On Jul 07, 2016
Flameneo:


First let me start with this info that a trailer load of Dangote cement contains 600 bags and not 900

The price you sell in your state is determined by the distance from the Factory.

The price they sell in lokoja is cheaper compared to the price they sell in Abuja, and that of Abuja is cheaper than the price they sell in Kaduna. It goes on and on like that

The amount you get your trailler load depends on who you take as ur dealer. Its good you have a honest dealer.

Like me,I pay my dealer only when I receive the trailer load and offload it. Other times I call him to inform him it will take a week b4 he receive his money

Be careful of the dealer you deal with because there is what is known as Rebag.
please can you connect me to your dealer as I intend to start this business soon. Please
Re: 5 Simple Truth About Cement Business by uboma(m): 8:11pm On Jul 07, 2016
Theoflux:
Like the half or quater of Micheal Jackson's mansion.


Lol.

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