ICE BLOCK MAKING BUSINESS. HOW PROFITABLE?

MAKE YOUR TOTAL PROFIT IN ICE BLOCK BUSINESS EVEN IN RAINY SEASONS

We live in the tropics with a lot of heat. Even during the rainy season, the heat is still intense, intense enough to make people to ask for cold drinks. Therefore, besides the conventional function of food preservation, freezers are needed to cool drinks for people. Since most cannot afford fridges and freezers, it becomes imperative to look for ice blocks for cooling drinks. Even those who can afford Fridges do not have electricity to power them, no thanks to the epileptic nature of electricity in Nigeria. This is the gap ice block business comes in to fill.

MARKET. The market is vast in the big cities where the population is on the high side. Cities like Lagos, Ibadan, Kano,port Harcourt,Benin,and Kaduna. The business also booms where there is high traffic of commuters which again takes us back to the big cities. Petty traders use ice blocks to cool minerals and water for commuters,to go motor parks and see how this pure water hawker are making there cool cash from their business. Not by any chance is sale of ice blocks limited to this. Other consumers are Hoteliers, beer sellers, clubs ,event planners'and even individuals and governmental organizations when they are having events.I traveled to onikonlobo area of Abeokuta in Ogun state,i wanted to buy bottle water i was told cold one is #80,while ordinary one is #50,and i was so exhausted,so if you are in my shoe which one will you go for ?

PRODUCTS. Ice block can come out in any shape. In fact, the block will take the shape of the container when it is done. But generally there are two types in the market. They are the rectangular ones which are made by just pouring water into rectangular holes constructed in the machines. The other is the tied type which is made by pouring water into transparent polythene bags. Here you have the big type and the small type. The rectangular type is more popular and it commands higher price than the tied type even if when they are of the same size. Nobody can explain why but that is what is happening in the market.


MACHINES. There are two types of ice block making machines.

1) locally fabricated(Fabricated or anti freeze) ,( 2) imported or automatic
As for locally made machines you find them in Ibadan and Lagos. You will get more reliable ones with their contact in my ebook.However, Ibadan appears to command a higher percentage of the makers. Prices differ from maker to maker and this depends on many factors. Some of the factors are
Size of the Machine


The freezing period


Quantity of blocks

No of compressors (Two machines of the same size with different number of compressors will differ in price.)
Size of compressors(2HP, 2.5HP or even 3HP)
Whether the compressors are used(tokuno) or new.
The most common machine by local manufacturers is the one built to make 25 rectangular blocks and this goes for about N200,000 depending on who is making it and what materials he is using.

MARKETING. You either sell directly to users or retailers who come to your plant to pack them and sell to users. IThere are some wholesaler that comes to you to buy and before 7;30am all your products are gone(You are the manufacturer),but there is price reduction for them,because they resell.If you are selling to users it means you will need a depot and freezers to keep the blocks in shape till they are sold. This of course means more expenses on transportation, space, and cost of labour. You will have to do your cost and benefit analysis to decide, but if you ask me I will say let the retailers carry from your plant and reduce your worries. But you must be current of prices otherwise the wholesalers will cut your throat.


PRICING. During the dry season the price is naturally higher. During this period you can sell a block to the wholesalersfor as high as N120 but during the raining season they may refuse to take it for N70. Weather, season and competition affect your pricing. You ask questions and feel the market to arrive at your price and this may vary on daily basis. You just have to be current.

PROFITABILTY. This is the crux of the matter. Is this business profitable? Yes if current is stable. Even if you are selling a block for N20 you cannot lose. With stable current your machine will freeze more quickly and the machine will last longer. Your raw material is water and all you pay for is the labour that fills in the water and harvest the blocks and of course electricity bill which may not amount to much. No business can be better.

However if current is erratic as we have in many cities these days, it becomes another kettle of fish altogether. If you freeze for 10 hours and the light goes for another 24 hours you get back to square one and remember your compressors have been running. Not only that, erratic supply of electricity shortens the life of your compressors
Generator? We shall see presently. You add a Chinese 15KV generator .You power with diesel at N105 per litre and run
for 20 hours or even 24 hours. This works out at N2100 for fuel alone for one
production. Let us assume you sell for N100 per block, your 250 blocks machine will gross N25,0000. Ok, Please when you are starting new dont employ ,do it with your wife and children,is not hard to do.
Machine maintenance for the generator and other inputs budget 50 Blocks which is #5,000,and the rest is your profit.Generator is the backbone of this business,for you to maximize your profit on time .........FOR FURTHER DETAILS LOG ON TO ( http://www.ecashempire.co.cc/iceonly/index.htm) and order for my ebook for just #1,000 only........SEE YOU SUCCEED