CONTRACT SOURCING

You can now earn big finders fee in one deal by sourcing for export contract for Nigeria exporters

 Export contract is an international purchase order, which would be signed by both the buyer/importer and he seller, the exporter before a legally binding international trade can take place between them. Getting export contract therefore is a very critical step in the export value chain, However many find it difficult to obtain because of knowledge gap in understanding trade terms, export market information and local product information.

Online export business: It might interest you to know that the gap between you and the millions of naira waiting for you in this business is nothing but the “basic understanding of an export business process”. Understanding the fundamentals of an export business process especially as it concerns securing a GENUINE EXPORT ORDER/ CONTRACT with a well secured method of payment, then you are on your way to making UNIMAGINABLE LOADS OF MONEY.

NOTE: You are strongly advised to use the email for all communication that has to do with export because it is faster, more efficient and cheaper. More than office apartment, you need the determination to make it work

The big secret: Veteran exporters and prospective exporters are in dire need of export contracts for the various agricultural and allied/ mineral commodities that could be explored within the country. So all you should do as an export entrepreneur is to secure these contracts via the internet using the various trade portals listed like Alibaba, Tradekey and so on, with your GSM phone, you could start earning commissions which run into millions of Naira in few months depending on the size of the shipment. All you need to do is to read through, carefully understanding the elements of an export contract process.

Here are the Contract sourcing options

International and bilateral Chamber of commerce: These are organizations you can join, they are Nigeria German Chamber of Commerce, Nigeria China Chamber of Commerce, Nigeria Belgium Chamber of Commerce, Nigeria Canada Chamber of commerce they are representative of business men in those Countries you can register with them and they can help you look at their data base to help you find a reliable and genuine buyers.

Attend workshop: A lot of workshops are being organized by export consultants through out the Country often times they give out contact of foreign buyers of Nigeria products, you can also attend the one being organized by the Nigeria Export Promotion Council (NEPC) they also organize seminars, they do invite foreign buyers to meet with Nigeria exporters, you can leverage on this opportunity to get an export contract

Personal contract through friends and relative abroad:: if you have friend  outside the country they can provide you with good contacts of importers of Nigeria products.

Referral from existing exporters: Some people are exporting already you can leverage on their experience some of them have a long term contract that they cannot fulfilled alone , they need more exporters from Nigeria to meet with their contract request.

International Business travels and film shows: A lot of us that travels out of the Country , we can use this opportunity look for buyers don’t just use it as a funfair but try and look for buyers of Nigerian exportable products

Internet portal: These are trade leads like alibaba.com, trade leads, B2B, Use Internet and online notice boards to post offers and respond to requests for new suppliers.

Contract Sourcing Processes

PHASEI

·        .         Read through export resource materials to get more information on your chosen product

·        .         Decide on the export contract to be sourced

·        .         Get a detailed profile of the export products from----

·        .         Get the product samples and divide it into 2 or more parts

·        .         Do a lab test on one of the products samples (test for the specification in the product profile)

·        .Reserve the other samples as product to be sent to the buyers in the future

PHASE II

·        Register as a free member on different trade portal and B2B Platform on the internet e,g Alibaba, when you get to any trade portal find out how robust  their services are, almost all of them has an help centre so you can click and read

·        State the details of the lab result of your product sample on the trade portals and B2B Platforms, if you done it with SGS state it there

·        Take the picture of the product don’t download picture on the internet

·        Check the portal on a daily basis to see the buyer’s responses to your mail

·        Before you answer the buyers question you can verify from a mentor or an excising exporters

·        Respond to the buyers enquiries promptly as soon as you get the response from them

.Making contacts with exporters: Once the importer have given their conscience to work with you as a broker you may run some classified adverts in the local newspaper such as “exporters are wanted for urgent product supplies” or “export business opportunities” This ad would be used to pull exporters of Nigerian commodities. When potential clients start calling as a result of the advert, inform them that you have buyers of the said product from a named part of the world say Germany, Belgium etc. I bet, you would be fascinated by the caliber of clients that will approach you for the contract. These ranges from retired senior military personnel and business tycoons with large reserve of funds. Fix an appointment and meet with your client Upon discussing the contract details, you could charge your client a finder’s fee of about N100, 000 and subsequently enjoy a 10% commission of the anticipated profit. Depending on the value of the contract, you could be well on your way to earning up to six figures monthly. Imagine collecting your finder’s fee from ten prospective exporters. This is a whooping N1, 000, 000 (one million naira) But for you to really communicate a detailed product description to both your prospective client and the foreign buyer, you would need comprehensive information about the quality profitability of the product in question.

.It might be slow at first, and you will need to plan your moves, make contacts and SELL YOURSELF. But once you make a few sales and sign several contracts, you will know that your dedication was worthwhile.

Tunji Afuwape is small business and SMEs finance expert

Tel: 08033224392.e-mail:info@21stplacelive.com

Export infomation: PRODUCT SOURCING AGENT

Export infomation: PRODUCT SOURCING AGENT: PRODUCT SOURCING AGENT An Ultimate strategy to get into the Nigerian export value supply chain As a product sourcing agent you can c...

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Export infomation: Export infomation: Nigeria export and exportable i...: Export infomation: Nigeria export and exportable information : EXPORT BUSINESS EDUCATIONAL www.21stplacelive.com Are You Serious ...

Export infomation: Nigeria export and exportable information

Export infomation: Nigeria export and exportable information: EXPORT BUSINESS EDUCATIONAL www.21stplacelive.com Are You Serious About Making Money in International Trade? ...

PRODUCT SOURCING AGENT

PRODUCT SOURCING AGENT

An Ultimate strategy to get into the Nigerian export value supply chain

As a product sourcing agent you can conveniently plug into the export value chain, what a good way to build up a successful exportation business from nothing and have fun doing it?  Not only does it require little financial investment to start, but it offers the prestige of working with Nigerian exporters spread all over the Country.

What you need to start: You don't need previous experience in the field, but you should have a good head for organizing and constant attention to little details.

Making contacts with exporters: As product sourcing agents, you will need to make contact with the Nigeria exporters, you can register with some trade portals where you will have access to their chosen commodities, specifications and contacts details, you can send a mail to them and inform them that you can met their requirement, you will need to submit a product sample, and you can then go ahead to discuss the price and the terms of payment

You clients: As a product sourcing agent you will deal with farmers, you will need to go their farms and deal with them directly and you might need to transport the commodity to the city, you can also deal with the local buying agents and the commodity merchant, although, they are very expensive but they make product sourcing very easy.

The value chain:

The farmers

Local buying agent (LBA)

Commodity Merchant

Commodity sales agent

Exporters

Farmers: Cultivate and harvest the commodities: Nigeria, one of Africa's most populous countries, has a highly diversified agro-ecological condition, which makes the production of a wide range of agricultural products possible. Agriculture is one of the most potentially viable sectors of the Nigerian economy, particularly in terms of its employment generation potentials as well as its contribution to Nation's Gross Domestic Product (GDP) and export revenue earnings

The Agricultural sector is being totally transformed by the federal government to enable the country move from traditional farming to modern agriculture as a business both for small and large-scale farmers. The objective is to ensure food security whilst also promoting exports in agriculture value chains where we have a comparative advantage. A lot of Nigerian exporters are investing in large scale plantation of different agricultural product, making over 900% returns on their investment. As a small investors you can get involved in the export value chain by getting a land lease for a year at N5,000 per hectare or buying the land completely and start large scale agricultural plantation

Local buying agent (LBA): They Purchase commodities from different farmers and pre –process them for export. They make sure they have enough commodity in stuck before the market day The local buying agents (LBA) is divided into two parts we have the local commodity merchant and city or large commodity merchant..The local commodity merchant operate at the local level, for instance a local buying agents that operates in Jujunku in Taraba state will by from the farm and stock his shop with agricultural commodities before the markets day, The city commodity merchant are in Kano, Lafia, Kaduna, they are big players before you can buy from them you must have a big order, some Asians that come to Nigeria do buy from them because the city commodity merchant can arrange for five to ten containers within few days As a product sourcing agent, you can buy from them if you have big orders, especially when you have the financial muscle to buy in large quantity, dealing with them ultimately saves time of the sourcing agents because you will get your commodities at one point

 Commodity Merchants: Purchase commodity from different local buying agents and farmers to process and sell to the sales agent and exporters. They are in Lagos and you will need to give them advance payment before they can supply you your chosen commodity. I will advice any new entrants into commodity sourcing to deal with the farmers, or the local buying agents, because commodity merchant are very expensive to deal with.

Commodity sales agent: Purchase the commodity from merchants and local buying agents to deliver to exporters’ warehouse. Some of them are in Lagos.

Need a point man: As a product sourcing agent often times you will need a point man, when you are sourcing for agro products, a point man will make product souring very easy for you they know the terrain and they now how to deal with the agents, they help in quick and effective coordination of your chosen agricultural commodity.

Exporters: They are the receiver of the products, they deal with the international markets In the export value chain an exporter can decide to deal with any of the agents or commodity merchants, he can decides to pay in advance or when the commodity is delivered to the warehouse. A lot of Nigerians are operating a highly lucrative export company and they are making a steady income of between N500,000 and  N10,000,000  monthly, regularly, and at their spare time. The profit from the first transaction can be ploughed back and an investor will be able to build up his capital base. The cheapest exportable product is charcoal and the start up capital is N650,000 and the profit on investment is N150,000 per trailer, Nigerians cannot even met the demand coming from the Europeans Countries now. If you have an ability to sell, and an air of diplomacy, the export business might be right for you. All you need is the desire and determination to make it work.

Product sourcing for the local manufacturing company Do you know some local manufacturers looking for ways to increase their market for the goods they produce? You can help them source for their raw material, a lot of Nigerian  companies are looking for cassava tuners, cassava flour, Shea butter, Cocoa, maize, Groundnut, you can get their LPO, I discovered that some of them pay on delivery being their regular supply can raise your income level.

Export Business Can Still Accommodate More Nigerians: The non-oil export business is still at its very primitive stage in Nigeria with a very high potential for growth. The market is, thus, inexhaustible (especially for agricultural commodities and other consumables). Therefore, there is space for everyone that will like to earn foreign exchange via the export business. If you are interested in the export business, you can start as a product sourcing agent and increase your skill in the export value chain.

The biggest advantage is the money you'll make. Once you get the business underway, the commission for setting up sales is very profitable. And after you establish and maintain a number of exclusive accounts, you'll find the time you spend is highly rewarded with money.

Tunji Afuwape is small business and SMEs finance expert

Tel: 08033224392.e-mail:info@21stplacelive.com