Wood charcoal business is a lucrative business in Nigeria. This is due to the increasing demand for wood charcoal is an alternative source of energy to cook in many Nigerian homes today.
The hike in the price of fuel, gas, and irregular power supply in the country has forced many people to resort to charcoal. To many Nigerians, charcoal is not expensive and it can be used twice or three times before one purchase another one.
Now in Nigeria, selling wood charcoal or going into wood charcoal business is a right path to make huge money. The market in this business is friendly and there are people out there who are in dire need of this alternative source or energy, especially for cooking.
Everywhere is a marketplace for you to sell your wood charcoal in Nigeria. Before now, people in the urban areas were not using wood charcoal.
But the sudden hike in the price of gas and kerosene has made almost everyone in the country to turn to wood charcoal. The need for a cheap source of energy for cooking and other domestic has informed this decision.
Since there is increased demand for the product all over the country, you just need to get a shop where your charcoal can be kept. The essence of keeping your charcoal in the shop is to prevent water to shower on it. It must be kept in a cool dry place.
Market Structure for Wood Charcoal Business in Nigeria
Make sure that people can see your product wherever your shop is located. Ensure that your price is friendly. You may sell in wholesales in order to make people get the product at affordable price.
Selling in wholesales will also enhance your market because you will be able to have your profit accumulating together.
But if you cannot afford to sell in wholesales, ensure that you package the product at different prices ranging from N100 upwards. This will make your customers buy your product regardless of any amount they take to your shop.
You can also venture into exportation of the wood charcoal. This will fetch you more money than selling locally. A lot of Africans cannot afford kerosene and cooking gas to prepare their food. Due to the high demand for this source of energy, there is a market for you within and outside the country.
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Demand Structure of Charcoal Business in Nigeria
Wood charcoal is still in the demand preference of many Nigerians. This development does not come overnight, it is as a result of the benefits that people can get from wood charcoal that makes them demand it. The following are some of the reasons for it demand:
1. An Alternative to gas
People see wood charcoal as an alternative to gas, kerosene. Charcoal is still affordable, so people prefer buying it in Nigeria even if they have gas for cooking at home.
Wood charcoal hardly generates smoke while using it and it will not make the pot dirty. So people believe that it as good as using gas for cooking.
3. It is Healthy
Since it is smokeless, it cannot harm your eyes while cooking. Besides, there is no danger attached to it while cooking with wood charcoal. No fear of explosion.
4. It Helps to Cook Quickly
Just like what cooking gas can do, wood charcoal can also cook faster. It is not time wasting.
5. A Good Alternative to Electric Cooker
It is also an alternative to electric cooker at home. Many people have shunned the electric cooker because of the irregular power supply in Nigeria. There is no fear of power failure.
Profitability of Wood Charcoal Business in Nigeria
Charcoal business is very profitable in Nigeria because there is much demand for it.
Wood charcoal has high demand because. This is a reason why you should venture into the business.
Not Time Consuming
This a business that you can do alongside with other business in Nigeria. People will call you when they are in need of your product.
Easy to Run
There is no stress while doing charcoal business in Nigeria. Your product will be brought to your shop when you order it.
Basic Requirements For Starting Wood Charcoal Business In Nigeria
You need to get some amount of money to start your business. You can start this business with whatever you can afford. Since it is a lucrative business, you will get your product depending on the amount you inject into the business.
You need to rent a shop to store your wood charcoal. This will make it be durable.
This will be used to test the quality of your product for your customers. It will give you confidence that your product is good.
You need to get a mobile phone. This will enable your customers will reach you on the phone in case they want to buy your product.
Although wood charcoal is a product that many people look for, you still have to advertise your product so that people will give you preference over others. Some of the advertisement strategies you can use are:
Display your product Outside
To let people see your wood charcoal, you must display it outside. There is no need to be afraid of theft. There is security for your goods, no one has interest in stealing it.
Snap and Share Pictures, Videos online
You snap your wood charcoal and share the photos online. You need to create a social media account online that will focus on the advertisement of your product. This will make people far away know what you are selling and they can order for it.
The number of staff you need depends on your market size. If you are only selling in just a shop, you need a sales boy or sells to help to sell your charcoal. You can then employ sales boy in each shop you have in case you have more than one shop.
There is hope for the sustainability of this business. Make sure that you do not allow rain or water to shower on your charcoal.
Wood charcoal business is a lucrative business one can invest into. It is a product that many people look forward to getting because it is an alternative to other sources of energy for cooking.
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