I first learnt about from my aunt a few years back. Please note this is not a new business concept as most of us were send to expensive schools by our cross border trading parents. Before I show you were the money, let me warn you. This is not a lazy man type of business venture. I tried it with my friend Webster and my then girlfriend but reached a Waterloo on the third trip despite the great potential and the amazing profit margins. I then accepted that this business model wasn’t for me. I was lazy though I loved the money.
Because I failed as a cross-border doesn’t mean you should too. The five trips we did are responsible for the capital we used to start a now more than five year residual income stream which I will share with you in October. So don’t take this business model for granted.
Amazing Facts – why you should be a cross border trader
Iam not going to wow you with the 7 best kept secrets about cross border trading but rather share the simple things we may already know but just weren’t taking seriously. Our production & or manufacturing industry is rising. Local demand can’t be met by local supply at least for now. Thus most organisations have an element of cross border trading, just that they use more sophisticated terminology and methods for it. If you are to walk into a supermarket, a corner shop, clothing shop, hardware just to mention a few; you will see what Iam talking about. Recently we supplied high end welding rods in partnership with my Uncle who works in South Africa to several hardware stores. I challenge you to just take a trip to Musina and I promise you that you will be frizzled and frazzled by the opportunities you will see. If you don’t see any opportunity, I promise I will pull this site down. I have gone to Musina several times and I have made some bit of money from the trips.
So for this article to make sense, I will focus on just one product. You may use the same product to do further research or to kick start your cross border business in Zimbabwe. Energy is not a Zimbabwean problem. Its going to be an issue for the whole world sooner. Alternative energy sources are definitely a great business venture. So we will be talking about LP gas stoves and accessories.
Shops to buy Appliances from in South Africa (2 year warranties)
• Game
• Hifi Corporation
• Checkers Hyper
• Makro Wholesale
• Devon Gas Centre – They have nice gas burners. Though they are only in Cape Town, they do deliveries.
Brands People trust
• Kelvinator
• Defy
• Alba
• Cadc
• Totai
The Prices for gas stoves and gas clylinders
The prices differ from time to time depending with the kind of promotions taking place during different seasons and times. Shops like Game and Hifi Corporations do promotions a lot often and now and then you will be able to maximize on them.
The average prices at the time of writing this article are:
Kelvinator 4 gas burner R2,199
Defy R2,199
Alba 5 burner with two electric plates R12,999
Defy 5 burner R3,699
Prices for gas cylinders
Alvas gas cylinders 3kg R413.82
5kg R476.52
9kg R610.00
Totai 3kg R282.15
6kg R437.65
9kg R537.97
If an average family using about $50 a month of electricity towards cooking switch to gas, the cost may come down to less than $15.00 per month. Thus the market for gas products is still available. The simple two plate gas burners which may be easy to convert to cash have an average price in South Africa of R1,000. This price is for the whole set which includes a 9kg cylinder. The same value can be bought in Zimbabwe for $150.00 or more. Not bad? LOL! Great profit margin and great return on your investment.
Transport to and from South Africa (and other costs)
Whilst price is objective, there is an element of subjectivity as it depends with how comfortable you want to travel, what you want to eat, were you want to stay and how many days you want to spend in South Africa. I remember not eating anything in the bus on all my trips to Musina. I saw no point of eating anything after I supped at 7PM and arrived at 6.30AM the next day. I bought my breakfast later during the day. Transport costs also depends whether you want to go all the way to Johannesburg or just to Musina. I have been to Johannesburg on cross border business twice. The prices are much lesser than those from Musina. If you have a big order, it is definitely worth traveling the extra miles. Transport to and from Musina averages $30.00 excluding laguages and an additional $20.00 for food.
Other Products with a ready market in Zimbabwe
• Television sets
• Smart phones
• Generators
• Building materials
• Sound systems
I always want my posts to be short and on point so that they don’t take much of your time but I hope I have almost summed up everything there is to know about cross border trading with South Africa in Mind. My next article will explore Zambia, Mozambique and lastly Tanzania.
0 Comments