If you are planning to start an ice block-making business, you need to read this article. The knowledge you will acquire in this write-up will keep you informed about how profitable the business of ice block is in Nigeria today. You will learn in detail about this venture from production to distribution. No one will like to start any business without considering the cost and other major factors that will make the adventure a worthwhile.
Ice block-making business seems to be underrated and so it is not attractive to so many people like other businesses. But the demand for ice blocks keeps increasing daily, especially during the hot period of the year. Water is an essential part of our daily life, but any value-adding vendor stands a chance to be ahead of competitors if he serves his customers’ cold water or drinks during heat season. It is very refreshing. Without much talk, let’s take a look at why you need to start making money through ice block production.
Secure Appropriate Ice-Block Producing Machine
There is one thing to consider before you start out in this business endeavor – a production machine. This plays a significant role in the overall success of the business. There are two major types of ice blocks you can find in the market today- dry Ice blocks and Anti-freeze Ice blocks. The Ice maker comes in various capacities in terms of the number of blocks it can produce in numbers of ours. The common types of capacities are
The higher the capacity in terms of a number of blocks and time frame to produce such ice blocks the higher the price. That’s just the law of economics. These machines can be purchased locally here in Nigeria. So, you don’t need to bother yourself about importation. Basically, you need initial capital of about 4 million Naira to buy a good machine in order to remain profitable and competitive. Although there are machines with less amount of money but with little capacity. I will suggest you think about durability and capacity at the same time. If you are limited in cash, you can learn about how to access fund for your business. Never forget to consider a company that offers after-sales support for your machine. This part is very crucial for the business. You can never rule the Pareto Principle in any business, 80% of your revenue will always come from 20% of your customers. So, focus your energy on retaining those customers but don’t neglect the remaining 80% of customers who give you 20% of your revenue.
Distribution of the Ice Block
What is the essence of producing what will only end up in your warehouse? Distribution of your ice block should also be part of the ice block business plan. You need to map out how you will reach your customers both at the retail end and wholesale. Patronage will always come from the following customers but don’t limit to them alone:
Drinks and Food Vendors
Street Traders/Hawkers in Traffic Area
For smooth operation, consider buying cooling delivery vans and possibly large vehicles for mass deliveries. It is advisable to package your finished products in neat and nice-fitting nylon or containers. Understand that this is another form of advertising for your product. One of the companies that I know that spend well and package their ice block is Wemy Rok Limited – The Maker of Rok Ice Block. Your point of distribution should be near the served area to reduce some costs associated with fueling and vehicle maintenance.
Challenges of the business
All businesses have that particular issues that hinder smooth operations. Therefore, expect some hinges coming because of the following challenges listed below. You must be well prepared as some of them are obvious and while others are unforeseen:
Unstable Power Supply
Government Regulatory Agencies
High Cost of Equipment Maintenance
High capital investments
Low returns During Wet Season
People have various needs for ice blocks. Your business should be able to address such needs. These could include food preservation, and keeping drinks cold at a certain temperature for a refreshing feel. Address customers’ needs and you will be amazed at what this underrated business can bring to you as revenue. Your profitability in this business remains a point you must focus on. The significant costs come before you start operation which is the equipment required. However, there are other costs needed in day to day running of the business. Think about it, how much will it cost to get the water required for production? I assume you have an answer for the cost of getting water which is a free gift of nature. Don’t forget to step up proper book-keeping records.