In Nigeria, there exists a lucrative opportunity for those interested in making money through plastic sales.
Specifically, the market for plastic material sales is ripe with potentials. These items are used daily by individuals and businesses alike for a variety of purposes, such as carrying water, sitting, or storing goods.
Some of the products include; buckets, bowls, waste baskets, chairs, and tables. There is a market for this business because people are buying it for their purposes. It is unisex, it is not selective, and all age groups use it.
A mother of three at Oshodi, Lagos, recently purchased a bowl for home use. She says: ‘As of last month, I bought a 20-litre bowl for N1,500 in the market. So I cannot say if the price has increased.’
So by tapping into this demand and offering quality products at reasonable prices, one can establish himself as a key player in this thriving industry.
At Ipodo Market, in the area of Ikeja, Lagos, a businesswoman who does not want her name in print said, she had been able to pay bills, support her family, and restock her business through plastic material sales.
Profitability
Various plastic products are available in different sizes and types, such as; buckets, waste baskets, and plates. Prices range from N800 for a small covered bowl to N1,500 for a 21-litre bucket. A set of five rectangular covered bowls costs N4,000, while the largest one alone costs approximately N1,500.
Selling a small waste basket for N1,200 yields profits of around N300, while a 50-litre bucket is sold for N4,500, and its smaller 30-litre is N2,600 and yields between N400 and N500 in profit margin per sale.
At Toyin Street, Ikeja, Kingsley, who has been into table and chair sales, said: “You should be able to decide which of the plastics businesses you want to go into.
For me, I have been dealing with chairs and tables for a couple of years now. So when you know the area you want to go into, you will know where to source the product. A unit of chairs cost N5,000 at the retail price. You get it for N4,600 at the wholesale price, which means you make a profit margin of N400 per chair. Selling 12 chairs for N60,000 results in a profit of N4,800.
Capital
To start a plastic chair business, according to Kingsley, one may need at least N1million or more “because this will afford you a variety of colours and types to meet customer needs. Customers’ needs are different. If you decide to start with only a white chair or table, someone will come and ask for a blue chair or table. If you have blue, they may ask for black. So you just have to have varieties.”
Another person says, “you do not need to have a large amount to set up a bucket or bowl business. When I started, it was not everything I needed at that time I bought. If you have N300,000, you can start with that. As people are buying the product and you are making money, then you can restock, and in that way, the business will grow.”
Sourcing For The Product
She disclosed that, they buy from different manufacturers and markets. The most popular markets are the Lagos Island market and the Agege market. However, companies sell products in a dozen units, whereas at markets, customers can buy items based on their individual needs.
Advice
For someone who wants to start this business, it is important to meet people who have been in it over time to show them the way. Part of what they will show you is the price of the plastics because they are of different types. You will also be shown where to get the product at the company’s wholesale price.