By ComExpert
Recharge Card Dealership business is quite a lucrative business: The reason is because it is the second fastest selling commodity today in Nigeria today in terms of sales volume. The only commodity that sells higher than Recharge Cards is the Proverbial Pure Water or Sachet Water. So, if you have been looking for a business to venture into and you have the capital, then you may want to take my advice and venture into this high-volume, low-risk business of Recharge Card Printing and supply. But maybe you want more details about the business and all it entails, and I am going to give it to you now.
Many people in the past have ripped people off with the misconception that this business could be started with Kobos; but my first advice here is: “If you don’t have up to N3,000,000.00 (Oh Yes! That is Three Million Naira in case you are wondering if I am aware of what I am saying), don’t even try it because you may not survive for too long.” Enough of the scare and let’s get started in case you are still there. Provided you will follow the guidelines I have laid down here, this business will make you wealthy in the shortest possible time.
First, permit me to use what I call the “Worst Case Scenario”: A situation whereby I use the smallest values to determine how profitable a business will be for one. I guess it’s better than overshooting reality and expecting unimaginable returns only to be disappointed at the end by the worst.
Without much ado, I will start by giving you a summary of the Recharge Card Business Structure, and how the business works.
The Recharge Card Business Structure is made up of the following:
Retailer
Sub-Dealer
Dealer
Network Provider
The Retailers
The final consumers buy directly from these ones. They are the ones you will see in your streets, in schools, around the marketplaces, etc. Some retailers use a phone call stand as their shop, while others may opt for a wooden kiosk or metallic containers. The recharge card retailers usually supplement their business with phone call. With as little as N50,000, you can comfortably start as a Recharge card retailer.
The Sub-Dealers
The recharge card retailers buy directly from the sub-dealers. Basically, a sub-dealer is registered with a Dealer for either one network provider, or as many as he/she can afford. Let me explain further because this is likely where you want to start your recharge card business.
You could become sub-dealer for MTN, Glo , Airtel, and Etisalat. You will have to register in each case with a Dealer for each network. This mean that, to become a sub-dealer for MTN, you will need to register with an MTN Dealer. Likewise, you will need to register with an Airtel Dealer, to become a sub-dealer of Airtel Recharge cards.
The same applies to the other GSM networks which recharge cards you want to distribute. I know for sure that to become a sub-dealer, all you need do is locate a Dealer near you, and make your intentions known. The dealer will educate you appropriately and perhaps register you at the same time. To comfortably become a sub-dealer, you need to be register across-board for all the GSM Networks. This is because, when the retailer comes to buy from you, they expect that you have all the recharge cards they need, if not, they will not regard you as a true dealer, and may go elsewhere.
To become a sub-dealer for MTN, you will register for free. But each time you want to order for stock, you are required to get at least N600,000 worth (this will constitute all the denominations, and you are free to buy any quantity you desire.) If you factor this into the four GSM Network’s recharge cards, you will need about N2.4 million. To be on the safer side, and not have an out-of-stock-and-out-of-cash problem, I decided to approximate the startup to N3 million. Anyone with this sum, a shop can start a recharge card sub-dealership.
As a sub-dealer, you can print the recharge vouchers (the N100 and sometimes N200 denominations.) But it’s better you allow the dealer do the work.
The Dealers
Recharge Card Dealership business is quite a lucrative business: The reason is because it is the second fastest selling commodity today in Nigeria today in terms of sales volume. The only commodity that sells higher than Recharge Cards is the Proverbial Pure Water or Sachet Water. So, if you have been looking for a business to venture into and you have the capital, then you may want to take my advice and venture into this high-volume, low-risk business of Recharge Card Printing and supply. But maybe you want more details about the business and all it entails, and I am going to give it to you now.
Many people in the past have ripped people off with the misconception that this business could be started with Kobos; but my first advice here is: “If you don’t have up to N3,000,000.00 (Oh Yes! That is Three Million Naira in case you are wondering if I am aware of what I am saying), don’t even try it because you may not survive for too long.” Enough of the scare and let’s get started in case you are still there. Provided you will follow the guidelines I have laid down here, this business will make you wealthy in the shortest possible time.
First, permit me to use what I call the “Worst Case Scenario”: A situation whereby I use the smallest values to determine how profitable a business will be for one. I guess it’s better than overshooting reality and expecting unimaginable returns only to be disappointed at the end by the worst.
Without much ado, I will start by giving you a summary of the Recharge Card Business Structure, and how the business works.
The Recharge Card Business Structure is made up of the following:
Retailer
Sub-Dealer
Dealer
Network Provider
The Retailers
The final consumers buy directly from these ones. They are the ones you will see in your streets, in schools, around the marketplaces, etc. Some retailers use a phone call stand as their shop, while others may opt for a wooden kiosk or metallic containers. The recharge card retailers usually supplement their business with phone call. With as little as N50,000, you can comfortably start as a Recharge card retailer.
The Sub-Dealers
The recharge card retailers buy directly from the sub-dealers. Basically, a sub-dealer is registered with a Dealer for either one network provider, or as many as he/she can afford. Let me explain further because this is likely where you want to start your recharge card business.
You could become sub-dealer for MTN, Glo , Airtel, and Etisalat. You will have to register in each case with a Dealer for each network. This mean that, to become a sub-dealer for MTN, you will need to register with an MTN Dealer. Likewise, you will need to register with an Airtel Dealer, to become a sub-dealer of Airtel Recharge cards.
The same applies to the other GSM networks which recharge cards you want to distribute. I know for sure that to become a sub-dealer, all you need do is locate a Dealer near you, and make your intentions known. The dealer will educate you appropriately and perhaps register you at the same time. To comfortably become a sub-dealer, you need to be register across-board for all the GSM Networks. This is because, when the retailer comes to buy from you, they expect that you have all the recharge cards they need, if not, they will not regard you as a true dealer, and may go elsewhere.
To become a sub-dealer for MTN, you will register for free. But each time you want to order for stock, you are required to get at least N600,000 worth (this will constitute all the denominations, and you are free to buy any quantity you desire.) If you factor this into the four GSM Network’s recharge cards, you will need about N2.4 million. To be on the safer side, and not have an out-of-stock-and-out-of-cash problem, I decided to approximate the startup to N3 million. Anyone with this sum, a shop can start a recharge card sub-dealership.
As a sub-dealer, you can print the recharge vouchers (the N100 and sometimes N200 denominations.) But it’s better you allow the dealer do the work.
The Dealers
The sub-dealers get their stock from the Dealers. Basically, it’s not easy to become a dealer. If you doubt, just try it: go to any GSM Network provider and find out. Even if you have billions to invest, they will not listen to you. The reason is obvious: “Too many cooks spoil the broth.” Normally, there are not more than 3 or 4 dealers per state, and a dealer only sells the recharge cards of one, and only one network.
The dealer can print the recharge vouchers on behalf of their registered sub-dealers. The biggest profit in this business goes to the dealers.
