How To Become A Distributor With Dangote Group And Other Top Selling Brands And Soar Your Profits By SuccessDigest

If you get it right, there is plenty of money involved in wholesale distribution of the fast moving products of great companies in Nigeria. This week, SuccessDigest continues to show you how to get involved having broached the issues in a recent edition where great products of nine companies were showcased.

We detailed how you can distribute the products of companies such as Promasidor, PZ Cussons, Samsung electronics, Star Times and five others.
You can be the one who buys "from the source" and sells to a reseller.

Dangote Cement Plc, producers of Dangote Cement
 Mr. Anthony Chiejina, Group Head, Corporate Communications, Dangote Group, spoke on how one can become a Dangote Cement distributor.

Getting Involved In The Distribution Channel Of Dangote Cement
Chiejina says, “To start with, Dangote Cement Plc is Nigeria's largest Cement producer with operations in 14 African countries. In an effort to ensure distribution of cement pan Nigeria, the company is currently seeking credible distributors nationwide.

“So, what you need do after you have shown interest in becoming a distributor is to come and register by applying as a distributor. You have to fill an application form and go through some application processes. But even before you start preparing to face the application processes, you need to know why you should become a cement distributor for Dangote.

1. Nigeria and Africa at large is developing rapidly just as the population is rising. Infrastructures are being erected and cement is a fundamental material for construction work such as bridges, roads, houses, monuments, amongst others.

2. With the huge population in Nigeria and Africa at large, coupled with the present housing problems facing the government - this means that there is a present and future demand for cement, as the government and private real estate investors try to meet the pressing housing needs.

3. The Federal Government of Nigeria is currently implementing a plan that will require cement to be used for road construction. If you have foresight, you will know what this means. Did you remember what happened to the price of flour and cassava when the Federal Government made a policy that cassava flour should be the composite material used for baking bread, instead of the conventional wheat flour?

4. Dangote Cement is currently the dominant and leading cement company in Nigeria. Thanks to the business acumen of its founder, “Aliko Dangote”, a formidable management team and a strong distribution network - Dangote currently has over 3000 trucks registered under the brand.

5. For the records, Dangote Cement PLC is currently the biggest cement company in the world with factories spread across Africa and with the future potential to export to the rest of the world. So, it is high time you aligned yourself with the rapidly growing company that is backed by a strong management and become a distributor”.

The Requirements
Chiejina says, “For cement, there are two types of distributorship channels: Corporate and Individual. But the basic requirements are:

Detailed Letter of Application, Scanned Reference Letter from your bank, Passport Sized Photographs of the Managing Director, Passport Sized Photograph of the company's Representative, Corporate Affairs Commission (CAC) registration document and a minimum purchase of one trailer (600 cement bags monthly on cash-and-carry basis). For further details on requirements, please visit our website www.dangote.com or feel free to send completed applications to cementdistributor@dangote.com. So, please, ensure that you have the soft copy of all the aforementioned documents before you begin Application and let it be that you have a 48-hour registration period guaranteed.”

Mode Of Payment
This isn't a problem at all, as you can pay at any designated bank. That will be made known to you during the application processes.

Minimum Quantity To Buy, Price And Other Things To Know
This depends on the products you are purchasing. For instance, with cement, the minimum quantity to purchase as a distributor is between three to five trucks per month - that is to say, an average of 2,500 bags. Though, as earlier said, the "minimum purchase of one trailer (600 cement bags) monthly on cash-and-carry" is one of the requirements to meet at the start of the processing stage.

Any Registration Fees?
No, not at all! Registration for distributorship is free across the Group.

Requirements At Locations
None with us, but you must as well pay serious attention to this aspect - you need to do a thorough background check on your location, as it also helps your sales strength.

 Incentives For Major Distributors
Yes, one of it is the very low prices at which you will get the products.  We have cash rewards for top distributors during a given period. There are also dinners, customer forums and other periodic meetings with top executives where distributors can express themselves freely.

Becoming A Sub-Agent
We deal only with distributors. Sub-Agents are free to choose which of the distributors they want to do business with.

Parts Of The Country Where Distributors Are Still Be Needed
As you can see with all said and owing to the pedigree of the company - Dangote, distributors are therefore needed in all parts of the country. So, the choice is yours!

Advice To Prospective Distributors
Be customer-oriented, hardworking, consistent and you will definitely succeed as a distributor. Now, you may not have the capital to purchase 600 bags at a go, but that doesn’t stop you from doing this business. You can align with two or more people, form a corporation or company, become a distributor, buy your cement produce and split it accordingly amongst yourselves.

Other Facilities To Put In Place To Get Started As A Distributor For Dangote Cement.

1. You Need To Write A Business Plan For Your Cement Company: A business plan gives you direction and opens your eyes to the wealth of resources you have at your disposal. Who are your target prospects? How much would it take you to start a cement business and haul products to your selling point? What things can you add to make your product more superior than your competitors? These are the questions - among others - which you must answer in your business plan.

2. Study The Competition: Who is your competition? What are they doing that you can do better? You need to study and understand their strengths and weaknesses. This is your advantage!

3. You Need A Warehouse: You will need a warehouse to accommodate at least, a minimum of 500 to 1,000 cement bags. You can also talk to the town leaders in your vicinity, about allocating some space for you to store your cement products. It is advisable to rent a warehouse to prevent unexpected occurrences

4. You Need To Arrange For A Vehicle: If you can afford to buy a supply vehicle (possibly a van or mini truck), then get one. It will help you sell faster, and make work more convenient for you. A haulage truck will also be needed to haul your cement products from the factory at Obajana, Kogi State or Benue State. However, you don’t need to own the truck, a pay per delivery contract will do.

5. Learn from the Gurus and not the “GOOROS”: Do you know why there are so many struggling businesses in Africa today? It’s because they have been listening to the “GOOROS." - GOOROS, means novices.  To succeed in this business, you need to speak with someone already in the GAME. Learn from someone with a cement business outside your community.

Many established business owners are happy to give advice to serious entrepreneurs. They love industrious young people and are ready to go the extra-mile in helping them. Don’t be scared. The worst answer you will ever get is a “NO.” Rejection is part of the game.

In conclusion, I want to restate that there is so much money to be made as a cement distributor. Even right here in Nigeria, you can still function as a cement distributor, while still doing your day job. You can make a realistic profit of N300,000 monthly by distributing cement. All you need is action, hard work, and determination!

However, you must bear in mind that no business is hassle-free, so expect some challenges while venturing into this business. It is your ability to deal with these challenges effectively, that will make you a successful cement distributor.

UAC Foods Ltd.
Mr. Joseph E. Chukwuwike, Regional Sales Manager – Lagos 3 of UAC FOODS LTD, spoke on how one can become a distributor of their products.
Different Products Of UAC Foods Limited
Chukwuwike lists them as follows:
-          Gala Sausage Roll
-          Gala Chicken Roll
-          Kingsway Sausage Roll
-          Gala Tinkies
-          Funtime Cup Cake
-          Funtime Coconut Chips
-          Snaps Cheese Balls
-          Supreme Ice Cream (pouch and bowls)
-          Supreme Ice Lolly
-          Supreme Yogurt
-          Supreme Funblast
-          Supreme Crème Bliss
-          Delite Fruit Juice
-          SWAN Water
-          SWAN Soft Drink

 Becoming A Distributor Of Each Of These Products
Chukwuwike says, “Anyone can become a distributor of any of these products by applying for distributorship in writing, thus indicating interest. It could also be some group of persons who have a registered business name with Corporate Affairs Commission (CAC). Whether an individual or group, there must be a registered business name; one that could accommodate the type of product you want to sell.”

Requirements At Various Levels Of Distributorship
Chukwuwike says, “Snacks Category (Gala & other sausage rolls, Cup Cake, Coconut Chips):

1. A letter of application to our corporate office at Kilometer 16, Ikorodu Road, Ojota, Lagos. P.O Box 117, Ikeja, Lagos;

2. A letter of introduction / recommendation from your bank;

3. A written/printed copy of your business registration name (CAC);

4. Filed copy of distributorship form collected from UFL and returned with a passport photo;

5. Funds to pay for stock, minimum -  (N1 million to N1.5 million);

6. Purchase of our snacks basket;

7. Vehicle for re-distribution;

8. Pay non-refundable deposit of N50,000;

9. Shop / store to keep stock

Ambient Category (Delite Fruit Juice, SWAN Water, SWAN Soft Drinks):

1. A letter of application;

2. A letter of introduction / recommendation from your bank;

3. A copy of business registration name (CAC);

4. Filed copy of distributorship form collected from UFL and returned with a passport photo;

 5. Funds to pay for stock, minimum -  (N1 million to N1.5 million);

6. Vehicle for re-distribution;

7. Shop/store to keep stock

Frozen Category (Supreme Ice Cream, Yogurt, Funblast):

1. A letter of application;

2. A letter of introduction / recommendation from your Bank;

3. A copy of business registration name (CAC);

4. Filed copy of distributorship form collected from UFL and returned with a passport photo;

5. Funds to pay for stock, minimum -  (N1 million to N1.5 million);

6. Chest freezers or cold-room to hold stock

Are There Stages Of Registration Needed Before A Person Becomes A Distributor?
Chukwuwike says, “You are not expected to register in any association before you can become our distributor. You only need to register your business name with CAC.”

Incentives And Benefits For Distributors
Chukwuwike says, “We give our distributors rebates at the end of each month based on the volume of sales. Rebates are earned based on agreed volume graduation in percentage as stated in the Terms of Trade (TOT). Other benefits include trade promotions; incentive awards based on target achievement; gift incentives during special occasions by distributors (at the company’s discretion).”

Any Need For A Guarantor?
Chukwuwike says, “Yes, you need a guarantor.”

Region Or Location Boundaries?
Chukwuwike says, “Yes, you are regionally bound. Territories are delineated and allocated to distributors where they are expected to develop and sell in. Distributors are sanctioned if they cross territories to do their selling.”

If I don't have N1m or 1.5m to start but I have N500, 000 or N250, 000 do I have a chance of still becoming your distributor or a sub distributor?  At what level will I be playing in the distribution chain?

Chukwuwike says, “You will also have a place in the distribution chain and that is the category of below a million to N600, 000. You will be closely monitored for the space of 6 months to see how you are making progress. And if after 6 months you are not able to meet up you will not be given the license to become one of our major distributors. The business is capital intensive, if you trade with less than a million, your turn over within a week will be very low, it is the volume of your product purchased that determines your turnover volume.

“Better still you could join resources together as friends or colleagues to make up that amount to get your products then work at raising your supplies”.

 How Do I Know My Boundaries So That I Am Not Sanctioned?
Chukwuwike says, “In the form that you will be given to fill and submit with your passport photograph, you will be asked to state or choose your preferred location or coverage area. After you have specified that, our team will check our distributors’ data to ensure that that location is not yet covered.

If it has been covered already, we will suggest another location or do an adjustment that will be okay for you and the pre-existing distributor; and the moment that is done you don't have any problems - your boundaries will be defined so that everybody can do the business correctly without any complaints of their customers being diverted.”

Oruhtrade International Ltd., Producers Of GO 90 Insecticide
Mr. Frank Anokam, Admin Manager, spoke.

What Are The Different Products That You Have?
Anokam says, “The products we have for distribution now are (a) G.O. 90 Insecticide Drop (30ml) 12 bottlesx24 packets/carton (b) G.O.90 Aerosol Spray (300ml) 12 cans/carton (b) G.O.90 Rat and Mouse Glue Trap 72 packs/carton.”

How Can Anyone Become A Distributor Of Each Of These Products Or Are They Restricted To Some Group Of Persons?
Anokam says, “All you need to do to qualify for distributorship of any of our products is to come over to our office at Km 11, LASU-Isheri Road, Igando, Lagos. Tel: 08038188004, 08057006781. There, you will need to submit a formal application letter to the Human Resource Department (HRD), indicating your interest in the distributorship of our products.

“You must also have a registered trade name with the corporate affairs commission (CAC) and a functional current bank account.

“You are also expected to have a delivery van, to move your goods around to your sub distributors or retailers.

“You are also expected to have a secure storage facility which will be inspected and certified by the company’s inspection team because the products are highly inflammable. So we have to make sure the environment is safe and secure to avoid any accident.

“Another requirement is that you should be able to (buy) lift a minimum of Five Hundred Cartons (500 cartons) of the Drop (30ml), the Aerosol Spray or any other product as required, which amounts to N3-4million.

“A formal reply will be given to the distributor if he or she qualifies, detailing other terms and conditions of service as necessary.”

Do I Need To Provide A Guarantor?
Anokam says, “Yes you will need to provide of Two (2) guarantors”.

Incentives And Benefits For Distributors
Anokam says, “The Company compensates her distributors based on the volume of sales achieved by them (the distributors). These compensations are earned based on performance
“Other benefits include product promotions, incentive awards based on target achievement, and gift incentives during special occasions”.

Any Regional Or Location Boundaries
Anokam says, “It depends on the level of your distributorship and the location which you intend to operate from. When we have all these details we can discuss how it will favor you and other existing customers”.

Nutricima Plc -  Producers Of Freshyo, Bliss, Coast And Nunu. Nunu Includes A Range Of Powdered, Evaporated And Ready-To-Drink Milk. Freshyo Includes A Powdered Yoghurt Drink Format And Also A Ready-To-Drink Yoghurt Range. Bliss Includes Smoothies, Ice Teas, Ready To Drink Flavoured Milk Products And Instant Hot Drink Powders

 Titilayomi Osagbemi, PR Manager, Nutricima spoke.

Getting Involved In The Distributorship
Osagbemi says, “All you need do is get in touch with any of our representatives and have your money and outlet ready”.

The Requirements
Osagbemi says, “You would need a distribution van. Your location should be in a place that can move sales quickly and you should  have the skills and ability to redistribute your goods”.

Mode Of Payment
Osagbemi says, “All payments are made by cheque”.
 
Minimum Quantity To Buy, Price Et Al
Osagbemi says, “There is really no minimum quantity but we expect a distributor should buy something worth a minimum of N300,000”.

Any Registration Fees?
Osagbemi says, “No registration fees are required. But payment is made before goods are delivered”.

Location Requirements
Osagbemi says, “We expect a good location that should be able to drive good sales. And your location should not be close to another distributor”.

Incentives And Benefits For Major Distributors
Osagbemi says, “Our distributors get a certain rebate every quarter. I will not disclose the details but our incentives package is juicy.”

Becoming A Sub Distributor
Osagbemi says, “As a sub distributor, you deal directly with the major distributor in your area of sales”.

Parts Of The Country Where Distributors Are Still Needed

Osagbemi says, “We can never have enough distributors. We need distributors from all over the country especially from the Northern parts”.

Advice To Prospective Distributors

Osagbemi says, “Be diligent and with time you’ll make it”.

Lafarge WAPCO Plc - Producers Of WAPCO Cement

Requirements For Becoming A Distributor
Just walk into their office and you would be required to fill a form. The form requires you to fill in some personal details. And when submitting the form, you are to attach a photocopy of the following document:

1) A copy of your company's registration  certificate with CAC.

2) A formal application letter of intent indicating your interest to be a distributor.

3) And a reference letter from your bank which you will obtain from the bank where your registered company holds a corporate account.

A distributor is expected to buy nothing less than five truck loads of cement. A truck load of cement consists of about 600 bags.
But the good thing is, if an individual cannot afford this on his or her own, he can partner with an existing distributor or another new distributor and they can put their resources together to buy the five truck loads of cement.

Facility Requirements
You need a warehouse. You also need pallets on which you would put your cement bags.
Then you need to make sure your warehouse is not in a place where rain or any sort of water can enter.

Incentives For distributors
An authoritative source said, “Our distributors that meet up to their required targets are rewarded with trucks and sometimes trucks of cement. We also give out gifts such as cars, generators, refrigerators, television sets, etc, on a yearly basis”.

La Casera, The Beverage Producing Company – Producers Of The Popular La Casera Soft Drink

The Requirements
A top official of La Casera Beverages Company, who pleaded anonymity, said it is vital for distributors of La Casera to have an in-depth knowledge and experience in beverage products distribution. Other requirements, according to him, include having infrastructure for distribution of the product, financial resources to procure the product and good marketing strategies.

Mode Of Payment
The official stated that one can pay at any designated bank and that everything is done on "cash and carry", basis.

Minimum Quantity To Buy, Price And Other Things To Know
The official said that a distributor who wishes to be taken seriously by La Casera would need to buy a minimum of 5000 pieces and have the sales personnel to market the product. He added that such a distributor would then be qualified to enjoy incentives such as gifts of electronics which the company gives out from time to time.

Any Registration Fees?
The official said there is no registration payment before becoming a distributor. He added that all one needs to do is just to show interest at their office and an official will be at hand to check for compliance to requirements and supervise.

Regional And Location Boundaries
The official said, "The distributor should be the only one covering a particular area but in case two distributors are covering same (large) area, they just have to demarcate their market - meaning, they must not encroach on each others' market areas," he said.

Advice To Prospective Distributors
The official therefore advised prospective distributors to go for all the brands of La Casera, sell more of them and make profit, as the Trade Volume Incentive - which is an additional incentive of the product for every minimum of 5000 or more pieces exists and is very attractive. “La Casera is looking forward to receiving distributors from all parts of the country - be wise” the official said.