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Wazua
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Supermarket Supplies
Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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Have a friend straight from college who would like to try his hand in entrepreneurship instead of formal employment.
Among the ideas he is exploring is to become a supplier in one or more of the mainstream supermarkets - say Tuskys, Naivas, etc. Whereas he is to decide on what product to supply after some research, for now he wants to know if the idea is even feasible for someone starting from scratch. For argument sake, let's assume he wants to supply toothpicks. What is the process from A-Z? Do you need to know anybody?
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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limanika wrote:Have a friend straight from college who would like to try his hand in entrepreneurship instead of formal employment.
Among the ideas he is exploring is to become a supplier in one or more of the mainstream supermarkets - say Tuskys, Naivas, etc. Whereas he is to decide on what product to supply after some research, for now he wants to know if the idea is even feasible for someone starting from scratch. For argument sake, let's assume he wants to supply toothpicks. What is the process from A-Z? Do you need to know anybody? Supermarket operators are crooks. Payment term can be from 90 to 180days which is not good for a starter. Best works for importers who import in large quantities at almost tax free rates and offload to supermarkets and then wait. Not meaning to discourage but it's not a good idea for a starter. "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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Gathige wrote:limanika wrote:Have a friend straight from college who would like to try his hand in entrepreneurship instead of formal employment.
Among the ideas he is exploring is to become a supplier in one or more of the mainstream supermarkets - say Tuskys, Naivas, etc. Whereas he is to decide on what product to supply after some research, for now he wants to know if the idea is even feasible for someone starting from scratch. For argument sake, let's assume he wants to supply toothpicks. What is the process from A-Z? Do you need to know anybody? Supermarket operators are crooks. Payment term can be from 90 to 180days which is not good for a starter. Best works for importers who import in large quantities at almost tax free rates and offload to supermarkets and then wait. Not meaning to discourage but it's not a good idea for a starter. Thanks for yr insight. But I cringed when you mentioned 'imports in bulk'. If I were PORK I would order my trade minister to make inventory of all products sold in local supermarkets. From toothpick to king size bed. Then ask him what % is imported. I would then craft policies to ensure we progressively reduce the number of imported products. But what are our politicians capable of? Just going round the country like headless chicken shouting 'so and so will be pork in '22! So and so will not be pork in '22!
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Rank: Elder Joined: 3/18/2011 Posts: 12,068 Location: Kianjokoma
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I once did some consultancy for a beverage company owned by one of the listed companies in the NSE. Those guys told me that despite their big name and assumed connections, they couldn't squeeze better payment terms than 60 days AFTER SALE of items from supermarkets (Note: not after delivery to supermarkets but after the supermarket sells the product!). That there is the precise reason why I don't understand how Nakumatt biz went down not unless the owners wanted it to. If he has capital, he can try and push. Try hire a good sales person to talk supermarket chains into allowing him to sell in their stores. But he'll need the capital because for a starter they will insist on consignment model
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Rank: Elder Joined: 12/7/2012 Posts: 11,883
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There is also the issue of supermarket staff wanting bribes to push your products. Once we used to supply a well known supermarket with fresh produce in Kisumu, the costs are abit high and delayed payments. Nowadays we are doing basic value addition and selling by ourselves - better. Though harassment from County staff still persists - but manageable. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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Lolest! wrote:I once did some consultancy for a beverage company owned by one of the listed companies in the NSE.
Those guys told me that despite their big name and assumed connections, they couldn't squeeze better payment terms than 60 days AFTER SALE of items from supermarkets (Note: not after delivery to supermarkets but after the supermarket sells the product!).
That there is the precise reason why I don't understand how Nakumatt biz went down not unless the owners wanted it to.
If he has capital, he can try and push. Try hire a good sales person to talk supermarket chains into allowing him to sell in their stores. But he'll need the capital because for a starter they will insist on consignment model What?! 60 days after sale means 90-180 days after delivery as mentioned by Gathige. How then do suppliers survive? Do we have any happy supplier in the forum?
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Rank: Member Joined: 8/29/2008 Posts: 571
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In Kenya,if you supply to private companies,there is an abuse of buyer privilege and they delay payments and ask for bribes.Most of the times,the business deals are not worth.Especially if you supply to private companies owned by politicians,they hardly pay.I supplied to a hotel owned by a former MP and I was paid after 7 months.My advice is ignore offers from private companies.
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Rank: Member Joined: 8/29/2008 Posts: 571
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Ali Baba wrote:In Kenya,if you supply to private companies,there is an abuse of buyer privilege and they delay payments and ask for bribes.Most of the times,the business deals are not worth.Especially if you supply to private companies owned by politicians,they hardly pay.I supplied to a hotel owned by a former MP and I was paid after 7 months.My advice is ignore offers from private companies. You are better off suplying to National government,say no to Counties and stay away from private companies.
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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Angelica _ann wrote:There is also the issue of supermarket staff wanting bribes to push your products. Once we used to supply a well known supermarket with fresh produce in Kisumu, the costs are abit high and delayed payments. Nowadays we are doing basic value addition and selling by ourselves - better. Though harassment from County staff still persists - but manageable. I guess you normally sign a legal contract stipulating rights and obligations of either party b4 supplying anything to supermarket so the issue is delayed payment not total failure to pay, am I right?
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Rank: Veteran Joined: 12/4/2009 Posts: 1,982 Location: matano manne
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Lolest! wrote:I once did some consultancy for a beverage company owned by one of the listed companies in the NSE.
Those guys told me that despite their big name and assumed connections, they couldn't squeeze better payment terms than 60 days AFTER SALE of items from supermarkets (Note: not after delivery to supermarkets but after the supermarket sells the product!).
That there is the precise reason why I don't understand how Nakumatt biz went down not unless the owners wanted it to.
If he has capital, he can try and push. Try hire a good sales person to talk supermarket chains into allowing him to sell in their stores. But he'll need the capital because for a starter they will insist on consignment model @  , kindly get in touch for consultancy discussion: convieneltd at gmail dot com
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