Okrika business is one of the most profitable business ventures in Nigeria and Africa at large. With a country like Nigeria that has more of its population in the middle classes, it is no wonder okrika is in such high demand and very lucrative. A good thing about this business is that you can start with little or no capital.
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Here are some tips and guidelines on how to start an okrika business in Nigeria
What Is Okrika?
Okrika is the local name for second hand clothing. It means used clothing or second hand clothes or generally tokunbo products and there are many ways you can make money from it. The most common way is by selling used clothes to people at different points from your home to even your workplace. You can also sell the clothes directly to customers at markets or on the street in your own neighborhood, provided it has a significant population.
Okrika business—bags, shoes, clothes, etc—has been around for years now and its popularity among Nigerians has increased over time because it’s easy to start and not capital intensive.
With proper planning and strategic marketing, you’re on your way to making a whole lot of money from the okrika business.
Tips And Guidelines On How To Start An Okrika Business In Nigeria
1. Do Your Market Research Thoroughly
Before venturing into any business, it is extremely important that you carry out extensive research of that venture in order to equip yourself with adequate information. Here are some important things to find out:
- Find out what sells fast and what doesn’t sell fast
- Find out the best locations to sell your goods, so that you can be sure of having enough customers around when it’s time for them to buy something from you.
- Find out how much profit you can make from each item (this will vary depending on its grade and quality).
- Look out for potential suppliers of okrika.
Visit as many Places that sell good and cheap Okrika
It is important to visit the best quality okrika markets/stalls in your area before you start selling it. The best way to do this is by going around and checking out different markets, asking questions like “Where can I find cheap and high quality okrika?” This will help you get acquainted with different okrika vendors, their choice of location and their pricing strategies.
Find A Good Supplier Of Good Quality Okrika
The next step is finding a good supplier of high quality okrika. This can be difficult at first, but you should be able to find one that offers a variety of products at a fair price and can supply you with the type of okrika you need for your business. Some suppliers may even have their own distributors in different parts of Nigeria or neighboring countries so they can get their hands on more stock very quickly.
At this stage, your focus should be on wholesale price, quality, variety and location. Look out for a supplier that checks all or most of those boxes.
Decide On A Location Where Your Goods Will Be Displayed For Sale
The next thing you need to do is decide on a location where your goods will be displayed for sale. This should be an accessible place, safe and easy to find.
It would be an added advantage if it is along the main roads so that pedestrians who pass by can buy okrika from you. However, try not to put it in an area where there is so much traffic because this might be counterproductive and make it difficult for customers to stop and select.
Know The Variety Of Okrika In Demand
As a vendor, knowing which goods to keep in stock and which ones to get rid of will help you save money, as well as increase your profits. The first thing that comes to mind is that people buy things they need or they like so try to tailor your products to either serve a need to be fancy and aesthetically appealing.
To grow in this business, ensure that there is always something new for customers to choose from. People love variety so this will attract more customers including those who may not have thought about buying anything else before but now feel like doing so after seeing how awesome your products look.
Have Good Bargaining Skills
Bargaining is a skill that can be learned. Practice it and you will be able to negotiate with every vendor that deals with you in the marketplace.
It’s important to know how much something should cost because there are times when you cannot find the right price for your product or service but your ability to bargain earns you a discount from the vendor.
Avoid vendors who insist on selling at retail price without any consideration for discount. Buying at that price will lead to reduced profits and increased costs for the business. Stick with a supplier who helps you maximize profits.
Get Different Types Of Okrika So That Your Customers Have A Variety To Choose From
People love variety and you should give them that. Have a variety of okrika goods that customers can choose from. It will even help you to upsell because customers would want to pick the best of everything before others take it.
Know How To Classify Your Goods Into Different Grades
Okrika products always have a variety of grades that people can choose from, such as A grade, B grade and C grade.
Knowing how to classify your goods into these different grades is important as it helps you calculate your retail profit ahead of time.
To sell okrika clothes, you must understand how they are graded, i.e things to consider when grading. For example, the country the okrika was imported from, how fancy and fashionable the clothes are, their newness and quality, i.e. the condition of the clothes, etc.
Grades of okrika include the following:
- Grade A: This is the highest and neatest of the grades. It is partly new material, having been worn before or not worn at all. It is usually free of any defect.
- Grade B: This is the second highest grade of okrika and usually has a minor flaw like stain.
- Grade C: This grade has a major defect—either it’s been torn slightly, is fairly old, or stained.
- Mixed grade: This has little of all the grades—A, B and C.
Many people think that the only way to make money from okrika business is by selling it at the market but this is not true. You can leverage online platforms and stores, where you have more options and customers can always reach out whenever they want something.
Final Thoughts on How to Make Money from Okrika Business in Nigeria
Okrika business is one of the most profitable businesses in Nigeria and Africa at large. This is because it is a business that does not require much capital to start and there are many people who have made millions of naira from this business. You can make a lot of money by selling okrika on a wholesale or retail basis depending on what kind of goods you provide as well as how fast they sell out there.