Nigeria, known for its erratic power supply, presents a business opportunity in the generator sales industry with frequent power outages being experienced by Nigerians. Hence, the need for backup electricity generators has become essential for households, businesses, and institutions across the country.
Findings have revealed that, starting a generator sales business in Nigeria can be a lucrative venture, due to the demand for reliable electricity solutions. However, there exists a vacuum that entrepreneurs can explore and make a viable income from power generator sales.
Speaking with a specialist in sales of power generators, Nnadozie Joseph, he highlighted the basic steps that an entrepreneur should invest in, before setting up a sales plant or office. He advised that, it’s imperative to conduct market research on the diverse power generators that are in the market.
Requirements
“Before venturing into the generator sales business, conduct thorough research and understand the competition in your target area. In my case, I identified the specific market segments, such as residential, commercial, or industrial, and their generator requirements, preferences, and purchasing patterns. This research will help you develop a tailored business strategy to meet the needs of your potential customers.
Speaking further, he buttressed the need for a good and cordial supplier relationship.
As a business person, establish relationships with reputable generator distributors, or wholesalers and ensure the generators are sourced from a reputable supplier known for high-quality products and after-sales support, he said.
Nnadozie emphasised negotiating favourable pricing and terms to ensure competitive prices for the customers, as this will aid healthy profit margins for your business as well as the customers.
The need for diverse generator products cannot be overemphasised as sellers harp on this to cater for different customer and their budgets as well.
Hence, offering a variety of options, including different power capacities, fuel types (diesel, petrol, gas), and brands while considering both portable and standby generators to provide solutions for various applications in individual homes, small businesses, or corporate offices.
One can also add after-sales service and support to the sale.
A good salesman should provide excellent after-sales service to differentiate the business from other competitors. To this, recommending a skilled technician, who can handle installation, and regular servicing, will go a long way to foster a good business relationship with the customer.
Similarly, for easy access and sales, the location of the business plays an important role in sales and visibility.
It is advised that setting up a sales shop in areas with high population density, commercial activity, and where there are frequent power outages will benefit the business. A visible and accessible location for walk-in customers will serve as a hub for generator-related services.
The seller can also deploy targeted marketing strategies to reach potential customers. This can be via online platforms, social media, or a business website to showcase the products and engage with customers.
Additionally, consider traditional methods such as local advertisements, flyers, and partnerships with local businesses or construction/real estate companies.
Project Manager, Tobi Adegboye stated that, for generator sales businesses, the manager or salesperson can leverage the demand for large-scale projects at construction sites, events, or industrial projects. This can help secure contracts for generator rentals or sales while providing significant revenue streams for the business.
To this end, Nnadozie asserted that the generator sales business in Nigeria holds immense potential for anyone seeking to venture into this business.
“Ensure the generators meet quality standards and offer warranties or guarantees to instill confidence in the buyer/ customer that will lead to customer loyalty and repeat business,” he said.
