Excerpts


Here are some quick excerpts from different guides:


 Bar Excerpt:

: Let us explore revenue in  Case Study One...As seen above the bar above sells mainstream beer at Kshs.180.

Taking the price, Kshs.180, as the mean, and their stated  average sales of 8 crates Monday to Thursday then that amounts to beer revenues of 8 *25*180 = Kshs.36,000 every week day. ( 8 Crates, 25 beers per crate and Kshs.180 per beer)

With the average of 24 crates per day Friday to Sunday that averages 24*25*180 = Kshs.108, 000 for every weekend.

Keeping everything constant the total beer revenue per month will be 36,000 *4 (Four days – Mon – Thu) *4 Weeks + 108,000 * 3 (Fri to Sun) * 4 weeks = Kshs.576, 000 + Kshs.1,296,000 = Kshs.1,872,000

Let us now stop the assumptions and face the reality. Here are some of the bar's expenses .... " (40 pages of street smart detail )


Mitumba Excerpt

 "....To get a better understanding of revenue let us explore another example ..

Now there is one wholesaler who sells a bale of trench coats at Kshs.28, 000. Such a bale contains 100 to 120 pieces. Assume this bale has 110 pieces. This means at wholesale each trench coat is being bought at an average price of Kshs.255.

Assuming you sell each trench coat at Kshs.500 that means that you need to sell at least 56 pieces for you to recover your purchase price without making profit. (56 x Kshs.500 = Kshs.28, 000)

If you sell all the 110 pieces at 500 you will net Kshs.55, 000. This will give you a gross profit of Kshs.27, 000. (Kshs.55, 000- Kshs.28, 000)


From this amount you will deduct Transport costs say Kshs. 1500, Manpower – Kshs.5000,
Rent Kshs.5000. Total – Kshs.11500


This will leave you with Kshs.15, 500 (Kshs. 27,000 – Kshs.11, 500), over 50% in margins.
And you being lucky hardworking and in a great location you are able to move 3 bales in a month. Not so bad, right?

This however is a very very ideal situation and not likely to happen.

First the trench coats in that bale will not all be of the same quality. Whereas some will command a price above Kshs.500 a piece say Kshs.700, Kshs.800, some could be unsellable while others can only be sold in the low realm prices of Kshs.50, 100 and Kshs.200.


Why will some be unsellable? Because of their poor quality, they could be torn, with stains, running colors, damaged through ironing or any other reason. And depending on whom your target market is and the ‘local’ brand you want to build for yourself you could be forced only to sell the mid and high quality coats and none of the lower quality ones so as not to dilute your brand.

Secondly is the length of time it takes to move the 110 pieces..... " (30 pages of details including practical examples) 


Timber Excerpt


 ".....From the above case study let us look at cypress. In this case a 6 by 2 at wholesale prices costs Kshs. 55 per foot in wholesale. If its sub divided into 3 by 2 then those will be two pieces, each going at Kshs. 44 per foot (Total Kshs.88). That means in this particular case a foot of cypress nets gross revenue of Kshs.33 per foot If the 6 by 2 is divided into 2 by 2 then those will be three pieces. Selling each piece at Kshs. 24 per foot then that will be Kshs. 72, and a margin of Kshs. 17 per foot.. Before it sounds too good to be true let us explore further....." 

Butchery Excerpt




....“Second Tier” Wholesalers

As we look more into revenue, let us first briefly touch on distributors/wholesalers who purchase from slaughter houses and deliver to butcheries; the ones we refer as second tier wholesalers since they buy from the major ( first tier ) wholesalers at the slaughterhouses.

Like we pin pointed not every butchery owner is able to go purchase meat from the slaughterhouse. Not that there are any restrictions at the slaughterhouses markets such as Dagoretti and Burma, but the challenges have to do with lack of a means of transport, time , convenience and related factors.

So that’s where the second tier wholesaler comes in; he buys from the slaughterhouse market say Dagoretti and Burma in Nairobi and delivers to the butchery in the estate that is not able to go buy the meat themselves from the slaughterhouse from whatever reasons.

This kind of wholesaler is easily identifiable by the white and red boxes labeled MEAT, on top of their pickups or motorbikes.

So how do you become such a type of wholesaler?

- Have a means of transport – You need to transport the beef from the slaughterhouse to the butcheries in the estates. The means of transport can be a vehicle or motorcycle. A vehicle can be a pickup, some station wagon like Probox or such other. A pick up is able to carry a bigger container and quantity.


- Have enough working capital – Since you are supplying to several butcheries you need to have cash to buy enough meat for all of them. Say you are supplying 6 butcheries, and each buying an average of 15 kilograms every day, and then those are 90 kilograms. At a minimum price of Kshs.200 per kilogram then you need at least of Kshs.18, 000.

Keep it in mind not all butchers will pay you immediately. Some will request you to come for payment after a day or two when they have sold all the beef. Meanwhile, even before they pay, you need to keep buying and supplying meat. Then you never know when you will acquire new customers and with them higher purchases.
Licenses – You need the license to transport the meat. If you look at the meat boxes you will note some numbers written on them. These have to do with the licenses. In 2016 the license costs an average of Kshs.1000.

To get the license the county officials have to inspect the box to be used to transport the meat. A standard requirement is that the box must be made of stainless steel .A standard box that can be carried on a motorcycle costs about Kshs.8, 000 to make.

- Have customers to whom to sell the meat to – Before you venture into the business you need to have customers (butchers) who will be your customers.

Customers can be new butchers who are yet to establish any loyalties. If not new butchers then you need to make the current butchers start buying from you. This is by promising and delivering better quality, prices or even terms. The butchers won’t just ditch their present suppliers from you; rather it will be a gradual process as they test and build faith in you.

....... The mark up varies but ranges between Kshs. 30 and Kshs.50 per kilogram. It could seem little but its substantial if you are selling say 60 kilograms. (MORE) .....On the face of it the business is good because you are able to sell in bulk, the margins are good and there is not much hustle. The biggest challenge is getting enough butchers or hotels to sell to. .......

Now back to revenue......" ( 30 plus pages of great detail )



Ice Lollies Excerpt

Back to the maker when purchasing capacity is the major price determinant. The higher the the more the maker costs.

The ice lollie maker is sold in two parts: the freezing component and the moulds. These are
priced separately.

There are various price points depending on who is selling the maker to you. However below
are the January 2016 prices from a leading supplier. They fall within the market range and
should act as a general guide for new ice lollies makers


Capacity - 120
Freezing Component - 65,000
No. of moulds required - 3
Cost per mould - Kshs.12,000....
Total ...

 11 pages of relevant detail 


Cake Packaging - The Opportunity

.....Based on the above then there are some gaps and problems that bakers are facing in terms of packaging. These are not just theoretical problems but actual difficulties bakers can pinpoint. These challenges include:


a) Size of the boxes – The standard size of boxes in the market is 4 inches high. Only recently did one of the box retailers introduce a 5 high inch box, and in such a way that they seem to be testing the market.


So what happens when a baker bakes a cake more than four inches ? She has to modify two boxes to cover the extra inches. The modification could involve using cello tape, trying to insert the boxes and other juakali methods. The result is a crude ‘structure’ which is nothing near the professionalism that has gone in making
the cake. Bakers will use different words to mean that such packaging ‘dilutes’ the cake. It’s actually frustrating and bakers have conditioned themselves to live with it.

Though height is the major problem when it comes to length there are limitations when it comes to the ‘floor’ size of the boxes. The biggest box in the market is... So bakers result to the same crude modification procedures if they prepare bigger cakes..(28 pages of market analysis)


OFFER: Get this guide @ only Kshs. 599 or better still enjoy our offer and get 65 Guides including this one @ Kshs.999 for all instead of Kshs.1999. Valid until Tuesday 15/1/19.

Kindly make payment via Lipa na Mpesa - Buy Goods & Services - Till no.876313. ( Crack A Business Kenya )

On payment text us your email address to 0712 473 455. We will deliver within 15 minutes.


For Help Call / Text / Whatsapp 0712 473 455. Happy new year.

2 comments:

 

© Copyright Alam Perwira | Born to Glory Template Created By : Alam Perwira and original template by Denzdii | Powered By : Blogger