How to Start Egg Supply Business

Egg supply business has a simple template, purchase the eggs and sell to stores. You play on the wholesale and retail end of the business.
The business is lucrative however it involves lots of marketing and transportation. The initial startup capital depends on the amount you are willing to invest in the business.
Majority of the funds is working capital used to purchase the eggs. You will face though competition from established suppliers and store owners.
Most stores already have retailers meeting their demand.  Therefore creating sales outlets is going to be a nightmare. Without regular buyers your egg supply business will remain comatose.
To get a share of the business you need to create your own outlets. Find stores that presently have no egg suppliers and introduce your serve.
Focus on smaller business will little cash capacity to build you customer base. Here are a few business ideas on how to start egg supply business.
How to Start Egg Supply Business
Why Eggs are in Such High Demand
Apart from the nutritional benefits of eating eggs they are ideal for baking. They also have lots of industrial and food applications.
Many delicious dishes have eggs as part of the ingredients. You also find eggs in beauty products, cosmetics, treats and health products.
Sourcing the Egg Product
Sourcing the eggs is easy because there are many large, medium and small poultry farms. Poultry farmers abound and are eager to supply to new markets.
Although the farms supply big wholesalers they are able to accommodate new entrepreneurs. Locate poultry egg farms within your locality or travel to remote farms for cheaper deals.
Transportation the Eggs
Transportation plays a major role in egg supply chain. You can lease a bus or buy one to carry the crates of eggs.
Retailers need to cover a lot of ground distributing the eggs to small shop owners. You can stock up on paper and plastic egg crate to transport the products.
The eggs supply chain
Poultry Farmer-Wholesaler-Retailer-Customers
Know your Customers
Your customers are grocery store owners in your community. You need to cover a lot of ground and meet a lager number of small shop owners to sell your stock.
 Locating grocery store without established suppliers would be difficult. Some potential customers are bakeries, fast food outlets and catering schools. Identify new markets and approach the proprietors for business.
Pricing and Profit
Eggs come in different shapes, sizes and prices. Larger eggs attract the higher prices while the small eggs are priced appropriately.
Farmers separate the eggs into small, medium and large eggs. The large eggs are sold in creates or individually by shop owners.
The smaller eggs are grouped into 2, 3, and 4 then sold as groups. As a retailer you sell your eggs in creates containing 24 eggs according to sizes.
The profit margin is calculated based on purchase price, staff wages and transportation costs. Sometimes retailers allow credit facility for some small stores.
 This strategy is not encouraged because it eats into your profit margin. You can start a small egg supply business with hundred creates of eggs and slowly add as demand increases.
Make sure the eggs you purchase from farmers fresh eggs to avoid having a bad reputation.
Locate one or two egg farms in you community and compare prices. Register your business as a sole proprietorship and obtain a trade license.
You need a personal identification number to fulfill tax requirements. Apply effective marketing strategy to locate new outlets.
Sell your eggs to catering services, bakeries, fast food outlets or even private individuals. You can approach small supermarkets and lockup stalls in your community to increase your spread. Finally purchase the amount of eggs you can easily sell without stocking.


Post a Comment