Are you planning to start a POS business in Nigeria but don't know how to start or what to look out for? I will guide you today on how to start and run a successful POS business in Nigeria. The apparent truth is that the POS business is no longer the lucrative business that it used to be because many people are into it now.
The more people venture into the POS business, the more competitive it becomes, but don't be discouraged. If you are convinced that you will make it through POS business, especially when you have a good location for the business, then go ahead. If you don't know how to get started, relax and read this guide to learn more about the POS business.
What is the meaning of POS?
While the meaning is simple, it's evident that many still dont know the whole meaning of the word POS. However, a POS means Point of sale
(POS). In Nigeria, POS is simply a place where we send and receive money or a platform set up to allow people to send and receive money conveniently.
How to start POS business in Nigeria
In Nigeria, there are no fixed costs associated with establishing a point of sale company. The cost of launching a POS business might vary depending on whether or not you have acquired a physical location (store). Whether or not you receive a free POS machine is another factor to take into consideration.
The most significant expense to consider when beginning a POS firm in Nigeria is the amount of cash on hand required to make withdrawals possible. It might run anywhere between 140,000 and 300,000 Naira.
New POS machines/terminals from some banks or fintech firms in Nigeria can cost as little as N80,000-N120,000, depending on the specifications. However, some companies provide free POS machines, but you must satisfy their eligibility conditions.
What is the cost of a POS Machine in Nigeria?
The cost of a POS machine in Nigeria is determined by the Bank or firm you choose and whether you want to be an agent or purchase the system directly. In Nigeria, there is no set pricing for point-of-sale terminals. Based on the features of the POS system, the prices can range anywhere from N40,000 and N60,000, and they can even reach N250,000.
Various POS terminals have different specifications, such as 2G, 3G, 4G, and other features and functions.
How to run a successful POS business in Nigeria
Opening a POS business is different from running a successful POS business, just like every other. Anyone can open a POS business anywhere, but what tips help make it a success?
I will guide you on opening and running a successful POS business even in a competitive area with many POS agents around. To become a successful POS agent, you must follow the simple guide below.Find Good location
the location of your POS shop mainly determines your success over, and I didn't mention a good shop because it's not necessarily a must to rent a shop if you dont have the fund. Though it's important, you dont have to if you can't afford one. An umbrella can do.
If you dont find a good location for your POS business, it will be tough to succeed. To find a good location, ask yourself a few questions such as:
- Who are the potential customers to target
- How many people are passing in this area
- Is the Bank far from them that will force people to patronize you.
- Do we have any market around that I can assist buyers who run out of cash?
You might have noticed that those people who run a POS business dont just rent a shop for POS alone but complement it with other businesses to make up for the rent and make more money.
If you can afford to rent a shop, consider going for other businesses like recharge card printing and selling as a wholesaler, cable Tv subscriptions like GOtv, Startimes, Trend Tv, etc.
You can as well sell anything like electrical materials, Keke spare parts, and the likes. Start a small cooking gas filling business, but it all depends on what you can afford at the moment.Increase your financial power
One of the advantages most of the POS Agents have over others is financial Power, and when I talk about financial Power, I am talking about the amount you can give out per day to your customers.
A customer can just come to your POS shop and tell you that he needs 100,000 or even 500,000 thousand Naira. Can you afford such an amount of money because that's where you make more money?
If yes is an answer, then you have what it takes to succeed, but if you can, then they will have not other options than to go to those agents who have the kind of money they need, is as simple as that. I have a friend who is a POS agent, but he has grown to be the king of other POS agents simply because he has the financial capabilities required compared to others.Ensure a fair transaction charges
When it comes to POS business, quantity is more important, and for your to command huge customers, your transaction charges must be fair. People are looking for where they can pay less when sending and receiving money.
However, you dont have to keep it so low after the main aim of business is to make a profit, but you must balance it to attract more customers and make a profit. If you keep your charges higher and you dont see customers that will patronize you, how do you make money? Dont be too fast, instead be more careful
A single mistake you made while handling a transaction for a customer can destroy your POS business. Have you heard someone who wanted to send 5,000 to someone and mistakenly added another 0, making it 50,000, or even someone who wanted to transfer 50,000 and pressed 500,000 without even knowing? That is why you must be more careful than trying to be faster.
Never trust anyone. Ensure that you confirm a transaction before paying out. Dont feel pity for any customer who claims to be in haste and forcing you to pay them without seeing their transfer in your bank account.
In conclusion, a POS business still works, but only if you find a good location for your business and have what it takes to attract customers because POS is now on every corner and every street. It would help if you did something different and attractive to attract more customers.