Do you know you can make good money buying and selling palm oil in Africa? Palm oil is usually cheap between March and April and gets expensive between expensive from September and January, especially in December. Read on to discover how to make money from palm oil in Africa.
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Pick a Business Model
You can do a palm oil buying and selling business in Africa in two ways. The first method is to go to the producers within your locality, buy at a cheaper rate, add some margin, and sell to the next available customer.
This particular method doesn’t guarantee a lot of profits. But you’ll still make a reasonable amount of money doing it.
The second method is buying palm oil when it’s cheap and storing it to sell when it’s scarce. You can buy between February and April when it’s cheap and sell to wholesalers or retailers within your country or neighboring countries between September and January when it’s scarce.
For example, if you buy palm between February and April and sell around September and January, you can get a 100% to 200% return on investment (ROI) or even more depending on the scarcity.
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Find a Supplier
You’ll need to find a supplier since you won’t produce the oil yourself. When looking for a supplier, find one that produces quality palm oil. If you can’t identify quality oil, then you need to work with someone who knows how to identify quality palm oil.
The success of your business will depend on the quality of your product. In Nigeria, you can find quality palm oil from Imo state, Abia state and some parts of River state. Check these guides on Amazon on how to negotiate to get the best deals and offers.
Make Transportation Arrangements
To move your palm oil product from your supplier’s place to your basement, you’ll need a good transportation arrangement. Sometimes, you’ll need to move the palm oil from your shop to your customers. You can even charge your customers delivery fees.
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Palm oil is best transported in gallons. You need to have a reliable means of transportation so you can easily move your products around.
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Get Your Storage Space
You could secure a cool, dry place to store your palm oil products. Having a storage place in your home is actually great because it allows you to check your product regularly. However, it’s best to have your storage close to your target customers. This will allow you to sell to them with ease.
As a palm oil supplier, renting a storage place close to a local market is a great idea. Palm oil is stored in barrels or big drums in a cool place away from direct sunlight.
Market Your Product
When you start a new business, you should promote it and let people know about it. There are different ways you can market your palm oil product, including word of mouth and social media.
The two methods cost little or nothing to start. You can easily reach out to people within your contacts to let them know about your new business. While some people on your contact may not patronize you, they may refer customers to you.
You can promote your business on social media by posting about it and educating people about palm oil. Here are marketing books on Amazon that can guide you on how to promote your palm oil business.
Buying and selling palm oil in Africa is one of those agribusinesses you can do and make money. The four steps that we outlined here are the basic steps that you need to follow to start. However, you can check Amazon to find books that’ll teach you have to scale your small business.
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