Pos Business Vs thrift business which is more profitable in 2023.
The main focus of this article is to know which is more profitable between pos business and thrift business in Nigeria and also the amount of capital required to start the business. Both pos and thrift businesses are both profitable and also capital intensive depending on the location especially for the pos business.
Thrift Business in Nigeria
For the thrift business, the exchange rate always determines how much is needed to get the goods and for now, the naira to the dollar exchange rate is pretty high which means the thrift market is not stable when it comes to pricing. Someone who just wants to start a thrift business should budget that least 60-100k depending on the type of market. But it advisable to go for what will move faster as the thrift business tends to tie down capital.
If 100k is been invested into thrift to buy 100 pieces of joggers at the rate of 1100 and it been sold for 1500 making a profit of 300 per pair multiplied by 100 the returns will be 30k minus 5k expenses and possibly 5k increment in the next market purchase, this means 20k profit will be made If all are sold out.
In the thrift business you don’t need a physical location to operate, you can hawk the goods from one place to another, sell them online to friend and also advertise on social media if you don’t have money to get a space.
Pos Business Nigeria
As for pos business, starting is always the hardest part and also requires much capital which will be used to get space also build a kiosk which costs about 45k-70k and lastly the pos machine which costs around 20-25k. Total starting cast of 75-80k without capital to run the business.
To run the business as a starter, 100k is always the recommended money to start with, which will still be able to run the business smoothly and it grows gradually. You can make 20-30k monthly after expenses is been deducted if you don’t hire anybody and it might increase, it all depends on your location.
Both thrift and pos business are both profitable but pos is still preferable can find yourself a good location not overpopulated by pos operators as the thrift business tends to tie down money as the market price of goods increase on a daily basis