The business of car or automobile spraying is very
competitive business in Nigeria but it is lucrative when the operator of the
service is able use cost effective marketing and innovation in serving his
target customers. In this article, which is a sample business plan, I will be
scratching the surface of this business opportunity and showcasing challenges
and threats that can negatively affect the growth and profitability of the
business within the Nigerian environment.
What is the
Car Spraying Service in Nigeria?
Can spraying business is the professional service of giving
automobiles improved looks through auto body spraying. Think of it in the same
way as painting given to a new building. The main reason is aesthetic but the
spraying of a car is a form of vehicle maintenance as it contributes overall to
the improve market value of a car especially in a thrifty market like Nigeria
where cars are still in use more than 20 years from their actual production
dates.
Car spraying businesses can be sophisticated in terms of
using ICT in producing world class finishing or they could be manually operated
by highly skilled car spraying technicians who with their vast experience
produce quality finishing that is hard to criticize. The venture can operated as a one man business or run as a
company. The main distinguishing factors are the capacity of the car spraying
business and the structures it has in place.
Market
Opportunity for Car Spraying Service in Nigeria
Nigeria has one of the world’s largest populations for second
hand cars. As 2014, they were more than 11 million cars in use and most of
these cars are for commercial use and are more than 10 years old. The tendency
is that these cars are exposed to harsh weather, overuse and abuse which can
only cause the car paintings to decline in sharpness and start fading. Besides this,
Nigeria is notorious for having a large number of reckless and over speeding
drivers who are prone to hitting other cars or getting hit themselves. Mild road
accidents create damages to cars that requires repairs and some of those
repairs involve body work including spraying.
Add the fact that once every 3 years or so, most car owners
have the need to repaint their cars especially when those cars are posh and
official vehicles. People also change their cars every now and then for various
reasons. For example, if a media house just purchased a second hand car that doesn’t
carry their official colour, they would naturally approach a car spraying company
to help them with the needed make over. So the target market cuts across
businesses with marketing and branding needs, to individuals who have been
involved in mild car wrecks or people who want a general makeover for their car
as part of their car maintenance culture.
The more established car spraying shops can have between 5
and 10 cars daily being sprayed at their workshop which means in a month that
could potentially be between 100 and 150 cars per month. The less established
but successful car sprayers may have 2 to 5 daily while the majority of car
spraying workshops could do between 20 and 30 cars a month.
How big is
the Car Spraying Market in Nigeria?
While the National Bureau of Statistics has placed total cars
in use in Nigeria at 11.7 million as of 2018 and that Nigeria imports over
160,000 cars per annum, we expect that the market size should be worth at least
4 billion naira in sales. This is assuming 1 in 90 cars get sprayed every year
out of an estimated 11.7 million cars as of 2018 get sprayed every year (this
is a conservative estimate) that means between 130,000 and 160,000 cars will
need spraying. At an average going rate of 50,000 naira per car assumed we have
a market size of between 3.84 billion naira and 6.5 billion naira. Lagos, Abuja
and Port Harcourt are the 3 biggest cities in Nigeria with huge vehicular
movements and hence main customer base locations.
Where are
the biggest Opportunities in Car Spraying Business?
- A lot of car owners, especially commercial entities are
aware of the use of and benefit of technology in spraying cars.
- A large number of people place premiums on their car
maintenance (mostly young and upwardly mobile folks). These people also tend to
have high maintenance tastes and negative experiences with artisans - that
means they are more likely to patronize a car booth.
- Besides this, the stiff competition in this business
means standing out with a car booth spraying rather than manual spraying can
create new business opportunities for people that invest wisely in this
business.
- Social media marketing especially can become a highly
cost effective marketing option for operators
How much is
required to start a Car Spraying booth Business in Nigeria?
If you want to attract more customers and charge higher fees,
then it is better to operate with a car spraying booth. The amount required
varies depending on whether you are buying brand new or fairly used car
spraying booth. A brand new car spraying booth can cost as much as $50,000
excluding shipping and installation costs while a fairly used one can go for
$20,000 also without shipping and installation costs. Besides car booth and
logistics, there are also other setup expenses totaling over 5,300,000. Grand
total amount required for setting up a second hand car spray booth will total
9,300,000 naira.
What is the
Return on Investment from a Fruit Juice Factory?
An investment of 13.3 million naira assuming the business can
generate 100 sales per month averaging 40,000 naira per sale will amount to 48,000,000
the first year. Assuming a 20% markup should yield 9.6 million naira in net
profit before tax in the first year. That means ROI is 72.1% and payback period
is 1 to 2 years if sales can be achieved.
Paul
Onwueme has been writing bankable business plans since February 2014 with many
of his clients achieving respectable results including funding and receiving positive
feedback from his clients. You can connect with him if you need a bankable
business plan written for you?
Phone: 0803
206 4106
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