I recently stumbled on this wonderful article written by Taiwo Akintunde for Tribune Newspaper and I thought to share it with you today. The post talked about the business, how profitable it is, marketing strategies and even interviewed people that are already into this business. Read on…
NOTE: If you want to start this business, you should download my free report here rechargecardbusiness.com. In that report, you will learn the nitty gritty of GSM Recharge Card Printing Business in Nigeria. Click here to download your free copy now.
Recharge card production, today, is one of the businesses in Nigeria, that are lucrative and in high demand as long as one has the product to sell in bulk. The good thing about it is that it’s a fast-moving product, with guarantee on investment.
Before now, printing and selling of GSM voucher in bulk was a business reserved exclusively for big distributors. But it’s now all about who is interested. That recharge card consumption in the country is expected to hit 50,000,000 units each month could make anyone, who may never have been interested in the business, consider venturing into it based on the turnover.
Getting to know that you can actually control your own market (no matter how small) by printing vouchers on your own and distributing them to a clique of outlets, makes the business even more interesting. The business is so lucrative that banks are jostling for the market share.
Selling of recharge cards and voucher does not require one becoming a GSM licensed dealer, which could be costly. One can take the advantage of dealers, who have the licence, but don’t wish to print themselves. With their full support and supply of vouchers’ pin, you are on your way to making N100,000 or more monthly. Printing and selling small units of recharge vouchers, whether MTN, GLO, Etisalat, Multilinks, Visafone, Airtel or Starcomms, can create a lifetime fortune for one.
Starting the business
Saturday Tribune spoke with a cross section of recharge card dealers, who made it known that the business was a daily one which thrives at all times. Miss Grace Nwachukwu, a recharge card dealer, said the business required no special training as one only needed to know how much each of the recharge cards would cost in their different denominations from the principal dealer and how to fix the price based on their selling price to the retailers.
Another dealer, Mr Sola Ibrahim, spoke on training before embarking on the business. He suggested that at least, two weeks training was needed, coupled with one’s little knowledge of computer in order to print out the vouchers by oneself, adding that one must also have knowledge of the market sale — how to deal with the retailers and price fixing, among others.
Not so much is required to set up a recharge card business. Speaking on the amount it would require, Miss Nwachukwu suggested the minimum of N25,000, while Mr. Ibrahim was of the opinion that it would require a minimum of N50,000. Mr Abimbola Oluseye, while speaking, said the recharge voucher business was filled with opportunities at every level, depending on one’s financial strength, noting that “the higher the money invested on the business, the more the gain would be and vice-versa. I started the business with a capital of N10,000, now I know how much profit I make per day.”
The question is, how many recharge cards and vouchers are loaded by both individuals and GSM call centres everyday? GSM has become an essential commodity in Nigeria. Have you ever wanted to go into recharge card business, but you are wondering if it would be actually profitable?
Speaking with Saturday Tribune on the profitability of the business, those interviewed said the profit margin to expect depended on where dealers get their cards from, adding that if one got the cards directly from GLO, MTN, Airtel and Multilinks offices in bulk, there was the possibility of making more profit than those who got theirs from sub-distributors or dealers.
“I started the business with as little as N10,000, dealing directly with the service provider and I normally worked with the computer centres that I trusted before I acquired my own system and this has helped me to improve my income in the business,” one of the dealers declared.
Mr. Oluseye, another dealer, said he had been in the business for five years, adding that he had found the business very lucrative and had dealt with different categories of people. He said that his customers were those who engaged in interpersonal communication through GSM and those engaged in GSM related businesses. In this category, according him, are GSM call centres, roadside recharge card vendors, individuals, wholesale buyers and so on.”
If you intend covering just about 30 phone booths close to your area daily, what you would need do is to start your distribution as early as 8.00a.m, circulating your cards to every booth on your list; once you are through with the daily circulation, take records of the cash balance in your sales account. For convenience and growth, get young people and if need be, get them small bicycles to join your marketing team. Make sure your price is a bit less than other competitors to win more customers to yourself.
Other tips that could help:
• Identifying with a principal dealer like MTN, GLO and so on, and have their recharge cards and voucher printing software installed in your system.
• Get a printer (colour or black and white).
• Plain A4 papers are needed to print out the recharge vouchers. Paper cards for recharge cards are sent to sub-dealers who need them in bulk by the principal dealer, as cards cannot be bought in the open market; it can only be supplied by the communication companies themselves in different denominations.
• Software that generate pin numbers (this will be installed on your computer).
•Bulk pin (this, you will be buying to generate your pin numbers).
Just like every other business in life, the business is not devoid of its challenges that may even lead to losing your investment, if care is not taken.
Saturday Tribune got to know that the most challenging aspect of voucher business is not the printing, but the marketing. One could print N100,000 vouchers in a day if one has the resources, but there must be certainty about how many vouchers one would be capable of selling on a daily basis.
“One of the major and common challenges in this line of business is giving out, for example, a N1,000 recharge card to someone who paid for a N500 recharge card. This mistake happens often,” a woman-dealer, who pleaded anonymity, said.
Mr. Ibrahim said that there was no business that did not carry some level of risk, but noted that recharge card sale carried minimal risk because they could easily be liquidated.
“The only problem I have is the daily sales due to my poor marketing structure and customers frustrating me sometimes when it comes to the aspect of payment,” he added.
Recharge card business is one that can be embarked on by anybody irrespective of age, sex and status. For somebody to stand out in the business, determination and hardwork are needed.
NOTE: If you want to start this business, you should download my free report here. In that report, you will learn the nitty gritty of GSM Recharge Card Printing Business in Nigeria. Click here to download your free copy now.