Just like any other business, right knowledge and careful planning are keys factor to avoid pending mistakes in the business. It is very important you don’t make these mistakes because some could impact your profitability or drag down your sales. Who doesn’t like more money?
If you want to make real good money, you need to have three important things on hand; the capital, the right product to sell and a comprehensive knowledge of how to obtain and sell your product. Your knowledge about diaper business will make you to avoid these mistakes I am going to highlight here.
# 1. Selling One Brand of Baby Diaper
When selling baby diapers, you will need to understand that there are different kinds of customers. Your customer base should address all segments both rich and poor. Disposable incomes of families are not the same. So, it is advisable to buy various diapers to reflect these income realities.
Don’t forget that some customers actually buy certain brands of diapers to show class. These premium diapers are Pampers Premium Care, Huggies Snug and Angels.
There is also economy (Mass Brand) diaper brands. Don’t confuse this with economy pack. Economy brands of diaper are cheaper brands. They are very affordable but possess low quality.
These types of brand attract the masses that couldn’t afford expensive one. Some companies adopt double play strategy by making both premium and economy brands available to the consumers. Good example is Huggies Red and Huggies Yellow, Hayat Kimya’s Molfix and Bebem.
# 2. Lack of Marketing and Visibility
You don’t have to spend big money or break bank. Simple WhatsApp status update can go a long way to showcase your business to potential buyers. There is a need to master the trick and tool to be used to be able to get appropriate results and meanwhile the tools are always free.
The site and location of your business determine visibility. Visibility to passers-by and in-store potential buyers, by this you need to have good planogram and other merchandising tools such as buntings, banners, Gondola stands. Some companies actually give these materials out to regular and repeated buyers.
Are you visible enough for customers to locate you? Is your shop located where your products can be easily accessed by potential buyers? Your online and offline presence determine how visible you will be. Make your contact information accessible to would-be buyers. Such information can be in Google my business, Facebook, ads, Instagram etc.
# 3. Buying from Wrong Suppliers.
Price and pricing system are key determinants in any market. A good pricing system helps businesses to be competitive. The selling price of an item is directly impacted by the source of purchase.
It is very important to always make enough market research to be able to know the right distributors/suppliers of particular brands. You can’t win the price war if your goods are sourced from wrong suppliers.
To get the list of diaper distributors, get my e-book on How to Start Baby Diaper Business. It has comprehensive details of accredited distributors in each state. Always negotiate for better discount price for your purchase.
Mostly, diapers sizes are 1, 2, 3, 4, 5 and in some places 6-7. Manufacturers in Nigeria today limit their production to 1-5. Nigerian mothers are always quick to potty-train their kids. Therefore, bigger sizes often don’t always sell like the mid-range sizes.
Size 1 = Newborn
Size 2 = Mini
Size 3 = Midi
Size 4 = Maxi
Size 5 = Junior
Most in demand size of diapers is Midi, often called size 3.
5. Not Selling Complementary Goods
If you sell “akara”, sell bread too. Do you ever wonder why every bookstore sells pen and book? This is the concept of complementary products/services. If you buy one, you most likely need the other. If you buy books, you most likely need a pen. If you buy bread, you most likely need a cold drink or yoghurt.
These products or services that help the customer enjoy your main service or unlock its full potential. Be creative, look around your skill. Look into your service. What will people always need alongside your product/service?
How To Start a Profitable Diaper Business in Nigeria
What will people enjoy alongside your product/service? What will aid the use of your product/service? What can you offer along with your product/service?
Mothers are always in need of baby wipes.
It is a complementary goods to diapers. Mothers want baby food for their growing up babies. Best strategy always wins.
Think about it
# 6. Importing Baby Diapers Without Thorough Market Research
I remember in one of my diaper business master class, one of the participants asked a very good question about importing diapers from 1688 website in China.
Hey! Importing baby diapers is good but requires thorough market research. Don’t commit such mistake it is deadly; you could waste a lot of money. Mind you, importation is not bad but be careful on types of diapers you want to import.
#7. Not Keeping Proper Business Records
Most traditional business often assumed that so far there is buying and selling, the business venture is making profit. This is a deadly mistake, the live blood of any business is the cash flow.
Business documents and proper business records are very vital in any business. One of the record-Keeping skills in business owner must have is accounting skills. You must understand and keep records of your cash flow both inflow and outflow. If not, you will not know how your business is performing.
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Basic records include
- Business expenses.
- Sales records.
- Accounts receivable. (Money People are owning you)
- Accounts payable. (Money you are owning others)
- Customer list.
- Vendors List or supplier list
- Purchase orders
- Banks statements
Keeping these records will help you to :
Know how much money to invest to create your product or service
Compare budgeted amounts to actual costs
Make wise decisions about purchases
Prepare for tax time
Protect your business in the event of an audit or employee issue
Calculate expected profit
It is very important you make necessary steps and planning to start a new business. If you have started already you always replan and make necessary adjustments in order to avoid mistakes that can have deadly consequences on your business.