One of the business ideas that I want to share with you today is the recharge card business. Recharge card business is so lucrative such that a lot of people are venturing into it, for you to start a recharge card business in Nigeria is simple such that you can start it anywhere in Nigeria.
For you to start this business you don’t need to go through the normal business registration processes.
The use of GSM recharge card in Nigeria is incredibly viral due to the wide use of GSM phones in our society today. Irrespective of how interior the village you intend to do the business may be, you can still make sales, so long as there’s GSM network coverage in that intending village and people are using mobile phones.
A lot of people think, recharge card business in Nigeria is something they can start with N5, 000 and earn N100, 000 overnight, it’s not done that way, so in this article I will tell you all you need to know about the business before venturing into it, and also tell you the estimated gain or profit you should expect to have in return of your invested capital.
If you must start the said recharge card business for as low as N5, 000, you must be combining it with a store already own by you, probably a provision store or a phone shop, this will just serve as a means of retaining the customers because the gain you are expected to make will not be much.
Recharge Card Gain Analysis
Here is a brief overview of the gain you should expect to make. For every recharge card of N100 denomination that you sale, the gain you will make will not be more than N5, so for every one brick of recharge card that contains 10pieces of N100 recharge card, you are expected to make N50. That is 5×10.
So for N20, 000 recharge card that you sell you are expected to make N1, 000 gain. Now, imagine how much profit you are to make and how much sales you can make to become successful in this field of business.
Recharge card business types
Recharge card business in Nigeria is of stages and each of these stages will offer you profit depending on to your start up capital.
1) Recharge Card Retailers: Recharge card retailers are the recharge card sellers you see on your streets, they buy those cards from recharge card whole sellers and finally sell them to the end user at the price written on the recharge card.
As I earlier explained, they gain nothing more than N5 per N100 recharge card they sell, so the profit you make in this stage of recharge card business depends on how many sales you make in that day.
This is the main reason I said earlier that this stage of recharge card business should be combined with either a provision store or a phone shop, for best results.
I personally recommend N50, 000 start up capital for this stage of recharge card business, if you are not combining it with other business.
2) Recharge Card Wholesalers: These recharge card individuals are the ones retailers buy from, wholesalers buy from the dealers, these wholesalers make regular gain of N3-4 per N100 recharge card they sell.
In the case of these wholesalers, they make large volumes of sales every day. The minimum estimated gain, they make is a day is N5, 000 depending on the volume of sales you make in that day. At this stage of the business I personally recommend N200, 000 for a start
3) Recharge Card Dealers: At this stage, you are required millions of Naira to get started at this stage of the business. At the dealer level, you will be dealing directly with the telecommunication operators in Nigeria, the telecommunication operators will sponsor the dealer’s business trips, even outside the country.
The telecommunication operators may also provide the dealer with a car. Dealers supply pins electronically to recharge card wholesalers via email. Dealers also are of types, dealers and mega dealers. At this level you need a minimum of 10million Naira to get started.
Which of the above listed options of recharge card business is your choice? Use the comment form to ask questions based on your option of interest to venture into this business and I will try my possible best to respond to your comments as soon as possible.
In my future article I will be sharing with you all the necessary tools needed to start recharge card printing business in Nigeria.
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