Egg supply business has a simple template, purchase the
eggs and sell to stores. You play on the wholesale and retail end of the
business.
The business is lucrative however it involves lots of
marketing and transportation. The initial startup capital depends on the amount
you are willing to invest in the business.
Majority of the funds is working capital used to purchase
the eggs. You will face though competition from established suppliers and store
owners.
To get a share of the business you need to create your
own outlets. Find stores that presently have no egg suppliers and introduce
your serve.
Focus on smaller business will little cash capacity to
build you customer base. Here are a few business ideas on how to start egg
supply business.
How
to Start Egg Supply Business
Why
Eggs are in Such High Demand
Apart from the nutritional benefits of eating eggs they
are ideal for baking. They also have lots of industrial and food applications.
Many delicious dishes have eggs as part of the
ingredients. You also find eggs in beauty products, cosmetics, treats and
health products.
Sourcing
the Egg Product
Sourcing the eggs is easy because there are many large,
medium and small poultry farms. Poultry farmers abound and are eager to supply to
new markets.
Although the farms supply big wholesalers they are able
to accommodate new entrepreneurs. Locate poultry egg farms within your locality
or travel to remote farms for cheaper deals.
Transportation
the Eggs
Transportation plays a major role in egg supply chain.
You can lease a bus or buy one to carry the crates of eggs.
Retailers need to cover a lot of ground distributing the
eggs to small shop owners. You can stock up on paper and plastic egg crate to
transport the products.
The
eggs supply chain
Poultry Farmer-Wholesaler-Retailer-Customers
Know
your Customers
Your customers are grocery store owners in your
community. You need to cover a lot of ground and meet a lager number of small
shop owners to sell your stock.
Locating grocery
store without established suppliers would be difficult. Some potential
customers are bakeries, fast food outlets and catering schools. Identify new
markets and approach the proprietors for business.
Pricing
and Profit
Eggs come in different shapes, sizes and prices. Larger
eggs attract the higher prices while the small eggs are priced appropriately.
Farmers separate the eggs into small, medium and large
eggs. The large eggs are sold in creates or individually by shop owners.
The smaller eggs are grouped into 2, 3, and 4 then sold
as groups. As a retailer you sell your eggs in creates containing 24 eggs
according to sizes.
The profit margin is calculated based on purchase price,
staff wages and transportation costs. Sometimes retailers allow credit facility
for some small stores.
This strategy is
not encouraged because it eats into your profit margin. You can start a small
egg supply business with hundred creates of eggs and slowly add as demand
increases.
Make sure the eggs you purchase from farmers fresh eggs
to avoid having a bad reputation.
Conclusion
Locate one or two egg farms in you community and compare
prices. Register your business as a sole proprietorship and obtain a trade
license.
You need a personal identification number to fulfill tax
requirements. Apply effective marketing strategy to locate new outlets.
Sell your eggs to catering services, bakeries, fast food
outlets or even private individuals. You can approach small supermarkets and
lockup stalls in your community to increase your spread. Finally purchase the
amount of eggs you can easily sell without stocking.
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