Iron rods are used in the construction industry in Nigeria. They are used to construct beams, columns, lintels and other structural members.
You can supply iron rods as a business in Nigeria and this article will tell you how to start. Nigeria produces iron and imports as well. However the the imported ones in Nigeria are more costly.
It is hard or near impossible to see a building without iron rods nowadays making it a crucial part of the construction industry. In this business you are a supplier and you have to furnish your warehouse with iron rods.
Steps To Start Iron Rod Supply Business In Nigeria
Step one: Business plan
How many rods do you want to supply? How do you transport them? What are the starting costs for this business? Where do you locate your warehouse? Your business plan should answer the questions above. It should contain all the items you need to start the business.
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Step two: your warehouse
Your warehouse for storing the iron rods should be accessible to your customers. It should be large enough to store your iron rods. Locate your warehouse where people can see it.
Step three: Buying the iron rods
Now it is time to buy the rods and fill your warehouse. It is better to buy from the companies that produce the steel in large quantities. However you can still buy from other places in large quantities. The costs below are not the precise costs everywhere in Nigeria but can give you an idea of the cost.
a. 25mm rods- a length is around N7000. 21 pieces of rods gives at ton which costs N120000.
b. 20mm rods- costs round N4000 for each length. A ton consists of 33 pieces of N120000.
c. 16mm rods- vodys around N2000 for a length. A ton consists of 52 pieces and costs N120000.
d. 12mm rods- costs N1200 for a length. A ton consists of 93 pieces and costs N120000.
e. 10mm rods- costs N1200 for a length. A ton consists of 133 pieces and costs N120000.
f. 8mm rods costs N700 for a length. A ton consists of 210 pieces and costs N120000.
Note the costs above may vary with different places in Nigeria. Go to suppliers and buy from them at a fair price if the steelmaking companies are not close to you.
Step four: Business registration
Register your business with a business name so that people will know they are not dealing with a fraudster. You can register with the Corporate Affairs Commission.
Step five: Locate potential clients
Sometimes your clients may not have to locate your warehouse before they buy from you, you have to go out, find and meet them.
Your potential clients are construction companies, building professionals like engineers and architects etc. You can supply to them in large quantities. Locate sites where construction is going on and ask the engineer about supplying the iron rods.
You may be the next supplier to that site. Go to construction companies and ask if you can supply them with iron rods. Move around and don’t just stay in one place. Your client may be somewhere you need to go to.
Marketing the rods
You may have to get someone who is honest and accountable to stay in your warehouse as the storekeeper or you are the person staying.
Bring out the rods to be visible to those passing by. You can start a website where you talk about your iron rods and how you supply them.
You may buy a truck for moving these rods to your clients when they ask it. However you can hire if you don’t have a truck yet, but you will always need a vehicle for moving the rods to site or elsewhere.
Irons of 16mm and lesser in diameter are more common in the market and are in more demand because of their common use.
You can use a software or a system that uses inventories to analyse your marketing system. This will analyse the demand and can be useful for estimating the quantity of iron you are buying. Data analysis can help to explore trends and realtime opportunities in the iron rod supply industry. It is necessary for suppliers to get contacts within the entire levels in order to note growth opportunities for the emerging markets.
Knowing the trends in marketing will enable supplies focus less on areas with decline. This will help them focus on emerging areas for investments.
Things You Should Know About Iron Rod Supply Business In Nigeria
It is a capital intensive business
It is a business that requires capital to start. You need funds to get a warehouse and buy the iron rods to sell.
Go for honest suppliers
Avoid people who are not honest when it comes to supplying materials. Ensure that you deal with honest suppliers. Honesty is a necessary ingredient here including your storekeeper. He has to be accountable to tell you how many iron rods he sold.
Supply on time
This is crucial in this iron rod supply business. Ensure that the products get to the clients on time.
Recycling the steel and iron rods
Consider recycling as an option and this may be scrap metals, cars and the rest. Some places can melt, filter and reuse the scraps. Remember to buy safety kits and equipments. Maintain the vehicles and service them to be ready to supply.
Promoting your iron rod supply business
The world is going digital and businesses need to form a strong online presence including your iron rod supply business.
Advertising online can be a way to reach more people in other places apart from your location. Using the word of mouth can serve too.
When people go online, they will see your iron rods and can contact you when they need them even if they don’t live very close to you. You can use banners too for this.
Iron rod supply business is one of the businesses you can do in Nigeria. It is capital intensive. This article is a guide on how to start this business.Buy and Sell Bitcoin in Nigeria - Register for free on Luno
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