The SECRETS ABOUT ELECTRONICS BUSINESS
Though the manufacturer and the distributor are all into business, the clear difference between the two is that one is in charge of taking the risk of creativity and innovations while the other is in charge of taking the product to the end user. In all, the both are interested in making product.
The world itself revolve around business, the daily activities of investment and profits. The same can be said about electronics business. This post will be discussing most of the areas you need to know about electronics business and its investments. Some of the areas are:
- What is Electronics Business?
- How does Electronic Business works?
- How can I start an Electronics business?
- How can I operate and maintain an Electronics business?
- What are problems in Electronics business?
- What other services can I render in Electronics business?
- What are secrets in the Electronics business?
- What Ways can I invest in Electronics business?
- What are Classifications of Electronics business?
- How can I make money in Electronics business?
Let us go into details in these areas.
What is Electronics Business?
The term ‘Electronics Business’ is a local way of referring to those involved in the distribution and selling of finished electronics products such as: Televisions, Radios, Refrigerators, Electric power generators, computers, laptops, Phones, and Printers, etc.
Those selling any of these or all of it can be referred to as electronics dealers. They could be direct wholesalers from the company or retailers buying from the wholesalers. Whatever means they are getting the electronics does not change the name.
Electronics business in Nigeria has come a long way starting from the era of German products, Taiwan Products, Japanese products, USA products, down to the modern era of Chinese products, the key players in the industry had been involved all along changing the strategies according to the wave that comes with the business.
Currently, vast majority of Nigerian electronics dealers depends on Chinese companies for supply due to many factors such as:
Affordability on their path.
Affordability on the path of the end users.
Moderate quality that comes with moderate price.
Cost management considerations by the Chinese companies.
And lots more.
How Does Electronic Business Works?
Electronics business in Nigeria works by importation and distribution principle. The investor imports the container of electronics into the country and distributes to the next chain of electronics business investors who can be referred to as the retailers. The Retailers will have to sell the electronics directly to the end users in their various shops.
The pattern above had been the basic technique in doing electronics business in Nigeria at the peak level and it requires investor with substantial amount of money. However, an investor with lower capital can invest into the business by buying from the wholesaler upon arrival of the container.
How Can I Start An Electronics Business?
You can start electronics business by first of all, raise enough capital depending on the level you wish to join. Secondly, if your capital is enough for importation then reach out to electronics manufacturing companies in China and establish proper and reliable relationship with them, you may need to travel to see the physical location of the company first before committing your money. Thirdly, you will need to secure a warehouse for storing of the container when it arrives. Fourth, you will need to reach out to potential retailers to patronize you.
At the retail level, you have lesser task. All you need to do is to rent a shop and reach out to an importer of electronics products to fill up your shop with goods.
How Can I Operate and Maintain An Electronics Business?
Starting the business is one task but maintaining the business is another task. For instance, electronics business is a very sensitive business because it involves millions of Naira.
First consideration in terms operation and maintenance is Security. He shop or warehouse must be a much secured building that will not be possible for breaking and entry.
Second consideration is possibility of robbery attack, hence, proper measures must be in place to deter and stand against any act of robbery around the vicinity.
Third consideration is debts. To survive in this business you must not at any point release goods to a buyer that has not made full payment of the goods.
Fourth consideration is ‘Test and Carry’ principle. The test and carry principle must be implemented between the end users and the retailers which shall serve as evidence of selling the electronics in good condition hence saving the loss of eventual return of the goods by the end user.
Fifth consideration is warranty. There is need to push for warranty between the retailing investor and the importer (wholesaler), the same applies to the importer with the manufacturing companies.
Sometimes, the companies have to assure the wholesaler on the quality of the electronics by offering certain months of warranty on the purchased goods. The warranty is then transferred to the retailers from the wholesaler upon their request.
This means any electronic tested for the end user but failed to function properly within the dates of the warranty can be returned to the company through the importer for change.
What Are Problems In Electronics Business?
Just like I every other business, there are challenges you can encounter in this business. The problems of electronics business revolves around security and customers’ satisfaction. If you can succeed in the two then you have solved the problems in the business. The list below is a detailed problems of investors in electronics business:
Robbery and theft of goods through breaking of warehouses and stores.
Robbery while on transportation of the goods.
Robbery of cash money realized from daily sales.
Issuance of fake money by dubious buyers.
Duping of investor through scams either by buyers or fake supply dealer.
Issuing of substandard goods by dealers.
Buying of Goods with no warranty.
Unforeseen damage to the goods after purchase.
Purchasing of stolen goods unknowingly.
Damages caused to the goods which doesn’t cover the warranty such as accidents on the means of transportation.
Regular misunderstanding with unsatisfied customers.
Misunderstanding between the parties involved
Refusal of damaged electronics despite the warranty.
Unforeseen damage to goods.
Delay in the selling of the expensive electronics.
High cost of shop rent and warehouse rent.
What Other Services Can I Render In Electronics Business?
Electronics business is so vast that you may not have space to incorporate other business into it. From selling one or two categories of electronics to the incorporate numerous categories of electronics used in offices and homes.
What Are Secrets In The Electronics Business?
Every business has a secret. The same goes to electronics business. For instance, in electronics business the following are the secrets:
- Categorize in selling of the most wanted electronics around your location. This implies selling the right thing at the right place. If there are schools and public institutions around your vicinity, selling items like blenders, electric stove, washing machines, plasma televisions, home theatre sounds systems, etc. may not sell well when compared to selling of office printers, desktop and laptop computers, electric power generators, phones and accessories, etc. another instance is selling of refrigerators in area prone to cold weather conditions, such case will require the selling of room heaters.
- Sell the right electronics at the right time. This implies selling the modest and up-to-date electronics. Sell televisions when people no longer use it rather prefer plasma televisions will result to low sells. Selling of petrol electric generators when a new trend is the use of solar inverters will also result to low sells. Therefore, a smart investor will always follow the trend of the changes that comes in technologies.
- Buy in large quantity if you can. Sometimes market price could increase due to inflation, the stocked goods’ profits could double this is a normal business strategy.
- Avoid fake and substandard electronics. This may not sound serious but it is. Some end users tends to blame the retailer if their electronics did not meet up to their expectations, this results to losing of customers.
- Use promo and compensation methods to keep your customers attention to your business. Sometimes, you could throw a promo and other customer benefits packages to make your royal customers feel appreciated.
What Ways Can I Invest In Electronics Business?
You can invest in electronics business either as a manufacturer, a wholesaler (Distributor), or a retailer. Each of the choice will depend on your financial strength and capital at hand.
A Manufacturer takes care of creativity and innovations by designing and inventing new electronics and manufacturing them as well as the existing designs. The job involves bring all the necessary elements and parts together to produce a finished electronics that can be used by the end user for a specific purpose.
The wholesaler whom can be referred to as the distributor, buys the finished electronics from the manufacturer at high quantity and store it in warehouse for distribution purpose.
The retailer on the other hand can be referred to as the end seller. The job is to buy at specific quantity from the distributor and store in a shop where end users can come to see sample, test it, and eventually make a purchase.
What Are Classifications Of Electronics Business?
The classification of electronic business can be said to be:
Manufacturing Electronic business
Distribution Electronics business
Retailing Electronics business
How Can I Make Money In Electronics Business?
Making money in electronics business will not be difficult if you apply the right strategies and invest substantial capital. You need to understand the business trends, your location demands, the right suppliers, security of your goods and money, and know when prices change in any of the goods, etc.
Conclusion
Having understand these secrets in electronics business, I believe you can now have some confidence in it and know the areas to pay more attention in a way of ensuring maximum profits from the investment. Feel free to comment and ask question. You can also share this post to your friends by copying the ink.
How can i run electronics business in my location area