Recharge Card Business - Multidox .:.:. Blog

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Posted by Felix Okoli on Wednesday September 14, 2011 at 6:42:24:

In one of my articles on 100 business you can do in Nigeria, I mentioned rehcarge card business as one of them.
Now the thing about recharge card business as I have noticed after making some calculations is that the profit margin is not that high but why do people still engage in it. It is simple, it sells very fast and so it gives one of the fastest turnover than any other business I have seen.
Let's say someone is into retailing of recharge cards by buying maybe 10 units of MTN N1500 cards at N14,500 from the dealers and selling it at N1500 each.
We have

Initial Capital: N14500
Sales: N15000
Gross Profit: N 500

So it simply means that for every 10 unit of N1500 cards that the recharge card retailer sells, he can gain N500. Now how will he be able to gain at least N5000 a day?

N500 = 10 units sold
N5000 => 10*10 = 100 units sold

So it means that if you are able to sell 100 units a day, you would have gained N5000 a day and in 20 days, that can give you N100,000.

Now it can be hard to sell those units in a day but you really need to make a lot of sales in order to make reasonable profit as a retailer. So having varying amounts of recharge cards can do the trick ans you need to have lower units as well as higher units to cater for everyone. You would also need to have recharge cards for all of the networks if possible.

Getting started in the business of retailing or wholesaling recharge cards would require that you have a variety of cards for your customers and make sure that you are not lacking any. Then after several weeks or months, you do a review of what cards sell faster than others and invest more money in them. If your customers buy more Glo recharge cards than MTN or more MTN 100 than MTN N1500, then you should invest more in those popular products because the thing with recharge card business is that you shouldn't hold onto slow selling products as it loses you money. Even if you have not sold the cards, fro the fact that it is not selling quick, it is not helping your business.

Every market environment in recharge card business differs so some cards may sell faster in your environment than others so it's good to do a sort of market research to know which cards and denomination to keep re-investing in for more profits because there really is not much profit in selling cards. What helps add to the profit is the volume of sales and not necessary the prices as the market is now really competitive.

So things you need to do to be successful at this business are:
- Source for reliable and efficient dealers
- Know your market
- Focus on faster selling recharge cards
- Don't keep reinvesting in slow selling cards

Comments:
Re: Recharge Card Business Posted by lizy selasi on Wednesday November 9, 2011 at 11:33:2:

i think you have a good idea. at least i now have an idea how interesting selling can be.i wish you don't publish this else every body would get to know the secret and every body will leave their business to sell and there will be no one to buy.got a plus for you.

Re: Recharge Card Business Posted by lizy selasi on Wednesday November 9, 2011 at 11:44:51:

Re: Recharge Card Business Posted by Abugo onyeka on Thursday December 22, 2011 at 18:18:58:

Pls,i am interested,help me,i have the softwares already,i only want d E-pins. 07082228729

Re: Recharge Card Business Posted by Felix on Thursday December 22, 2011 at 18:18:58:

Why don't you contact the dealers for the pins. You can get a dealer location from the gsm companies customer office

Re: Recharge Card Business Posted by Ene Onwuka on Thursday January 19, 2012 at 12:37:51:

i want to start the recharge card business. Please get in touch with me on how to start.Many thanks

Re: Recharge Card Business Posted by JOHN on Saturday January 21, 2012 at 15:46:43:

I will be very happy if my request is giving good consideration.

Re: Recharge Card Business Posted by gabriel egogo on Friday February 24, 2012 at 23:50:30:

pls i will like you to send me more details to my e-mail. thanks

Re: Recharge Card Business Posted by david on Monday July 9, 2012 at 8:42:9:

Please can u inform me about the lowest recharge print in this state.