Working Lives

Working Lives: The Abia Man who chose Spare Parts Over University

Working Lives: The Generator Parts Seller who chose learning a trade to going to the University

After my dad died, my uncle who was based in Lagos gave me an opportunity to choose between going for higher studies and learning a trade, but I chose learning a trade instead. I was not really cut out for school because I was not sure I would perform well or graduate with excellent results.

What is your name and where are you from?

My name is Daniel Chinedu Obasi. I am from Umunneochi Local Government Area of Abia State.

Tell us about your Education

I attended Ihie Community Primary School in Umunneochi, Abia State. After my Primary education, I went to Nneato Secondary School also in Abia State.

Tell us about your family

My family lives in Abia State. My father is late. At around the age of 60, he suddenly fell ill and died. The doctor said it was typhoid. He was a farmer. He also reared goats and hens. People would come from neighboring villages to buy from him. There were days when we had customers who bought five goats or more at once. This usually happened when they were preparing for burial ceremonies. My father was a successful businessman. My mum on the other hand always assisted with feeding the animals and nurturing them. I am the first son of my family. We are ten in number – five boys and five girls.

Did anyone take over your father’s business after his demise?

My mother took over the business after my father died. She has always been involved in the business even when my father was alive. She is really doing well in the business. In fact, the business has expanded better than the way it was when my father was alive.

Why did you not go for higher studies?

After my dad died, my uncle who was based in Lagos gave me an opportunity to choose between going for higher studies and learning a trade, but I chose learning a trade instead. I was not really cut out for school because I was not sure I would perform well or graduate with excellent results.

When did you come to Lagos?

I came to Lagos in 1990. This year makes it 32years that I have been in Lagos; I was brought to Lagos by my uncle after I opted for learning a trade. My uncle was doing well in Lagos at that time, he owned a chemist and had four sales representatives working for him.

Also Read: Working Lives: The Engineer’s Son Who Became Car Parts Apprentice After Father Died

How did you venture into this business?

I was not interested in my uncle’s line of business so when I got to Lagos, he introduced me to a friend of his who specialized in generator and generator parts. They both signed a ten-year contract for my apprenticeship. The terms of the contract included; I would learn the business from my master and superiors who have been working with my master before me, I would not be entitled to any form of payment/salary, I would live with my master who would only feed me, my master will give me money to start up my own business me after I had completed the ten years of service.

How did you survive without any source of income for ten years?

The first six months of learning was tough, but along the line, I got the tricks to the business. Money never became my problem anymore. Some engineers who usually come with their clients to buy parts would have called us prior to their coming to inflate the price. Some other engineers might not even have any idea of the price of the parts they want to buy, so when we observe that, we inflate the price as well. I get my cut of the payment after each successful transaction. We also have some clients who might not come with an engineer at all, we bill them as we please.

How much did you make daily in these transactions?

On days where sales were good, I could go home with N10,000. But if the situation was reversed, i.e., sales was not really good. I could end up with N3,000 to N4,000 for that day.

How did you start up a business of your own?

After serving my master for ten years, my master paid me N500,000 to start up a business of my own. However, I could not get a cheap shop at Oyingbo. The cheapest I got was about N400,000. There were some shops I was asked to pay 1 million naira or more, shops are quite expensive at Oyingbo. I could not proceed with the plan of setting up because the money I had was not enough. Apart from the N500,000 my master gave me, I had N200,000 from my personal savings, which was not still not enough to set up. Along the line, I met a woman who had just lost her husband. Her husband had a shop at Oyingbo where he sold generator parts. She asked me to work for her for five years. After five years, I would pay her 3 million and get the shop with all the goods in it – that was our agreement. She wanted to relocate from Lagos to the East, Anambra State precisely. We had a written agreement and I paid her the N500,000 that was given to me by my master. After five years, I had not saved up N2,500,000 to balance up, so I had to serve her for another five years. I completed the 3-million-naira agreement after serving her for ten years. In total, I spent 20 years before I could own a shop at Oyingbo.

Where do you buy generators from?

We buy generators from Trade Fair. People who import goods from China are based in Trade Fair. The importers are not easy to come by though, because they do not stay in Nigeria for long. However, they have representatives who work for them. We contact their representatives whenever we want to buy goods.

Do you always have funds to buy goods or you buy on credit?

We do not always have funds. In situations where we need goods but we do not have enough money, we buy on credit. For instance, you might want to buy goods worth 3 million naira but you have 2.5 million or 2 million naira. If you have a good relationship with the seller, he will sell to you on credit with the assurance that you would pay back after you made sales. Sometimes, some of my colleagues get loans from banks to buy good. I have never done that. I prefer to buy on credit if I do not have enough money.

What brands of Generators do you sell?

There are many brands of generator. You can make a choice on the brand(s) you want to sell. Most of us sell Elepaq, Firman and Sumec. We sell other brands too but these three brands have been in the market for a long time and quite durable. I also sell new brands like, Elemax, Maxi etc. Even if I do not have the brand customers want, I always try to convince them to buy the brands I sell. But if they insist, I will get the brand from my colleagues and we share the profit equally.

How much do you buy the generators and how much do you make as profit?

The selling price depends on the size or capacity of the generator. We buy Elepaq 2.5 capacity for N118,000 and we could sell for N125,000 to N130,000. We buy Maxi 2.5 KVA for N140,000 and sell for N145,000 to N150,000. We also give bribes to policemen while transporting the goods to our shopsto avoid unnecessary delays. There are days that we request for a police escort who will accompany the truck on an agreed payment. I make between 5% to 10% profit from each sale. I will say the business is profitable. I can boast of a house and a car at the moment. Both came from the profit made from my business.

How much do you buy generator parts and how much do you sell them?

Generator parts differ; there are half engine, carburetor, silencer, etc. The cost of generator parts depends on the capacity of the generator. For example, we buy half engine for Maxi 5.5 KVA for N145,000 and we sell at N160,000 or more depending on the buyer’s negotiating skills. That is about 10% profit.

How often do you buy generators and generator parts into your shop?

I go to the market twice in a month. In some situations where there are needs for urgent restocking of goods, I would send my colleagues going to buy goods to get goods for me as well. I also have customers who buy in bulk. I try as much as possible to always ensure I have goods ready for my customers, I do not like it when customers ask for a product but I do not have. The statement “I don’t have” is not good for business. One could end up losing customers if they keep asking for products and you do not have.

Who are your customers?

My customers are mostly engineers who repair and fix generators. They recommend my generators to their customers, if the need arises for their clients to get a new generator. As a means of appreciation, I always buy them soft drinks or water whenever they come around. Passersby do patronize me as well.

What time of the year do you make most sales?

We make good sales whenever Power Holding Company of Nigeria (PHCN) does not give power. There are some people who cannot sleep without fan or air conditioner, these kinds of people usually patronize us whenever there is power cut. Even some who have generators would come to have them fixed. We make good sales during dry season as well.

Which brand do people buy more and why?

Customers buy all kinds of brands. But many believe Elepaq is the strongest of all generators. So, we usually have a high number of customers requesting for Elepaq. Customers also go for Fireman and Sumec. However, all products are good, maintenance of the products and level of usage are the important factors for a durable generator.

How much do you make in a week?

I make about N350,000 in a week when sales are not so good. However, I make about N500,000 in a week when sales are good. So, I make between N350,000 to N500,000 weekly.

In a typical month, how much do you make in total?

I make about 1 million naira or more in a month when business is good. But when there is no market, I make about N700,000.

Do you have savings and how much do you save?

Sure, I save every day. Most of my customers make payment through transfers to my company’s account, I only withdraw when I need to. I really cannot keep records of how much I save because I save everything that enters into my company’s account.

Are you married?

Yes, I am married with three children – two boys and a girl. My wife is a fashion designer.

For how many hours do you work in a day?

I work for 12 hours from Monday to Saturday. I open my shop at 7am except on Thursdays where I open at 10am because of sanitation and I close at 7pm. On Sundays, I open my shop after church service. My wife comes to the shop to monitor sales whenever I am not in the shop. I have boys working for me as well, they will always be at the shop even though I am not there.

How much do I need to start generator business?

With the Economic situation and the increase in Dollar rate, you might need to break the bank to start this business. I hustled for 20 years to own a business of my own. Renting a shop at the right location should be considered first. The cost of shop in this location (Oyingbo) is between 1 million to 1.5 million naira depending how big the shop is. To start with, I will advise you have about 10million naira.

What is the difference between when you started this business and now?

When I started this business in 2005, the economy was not as bad as it is presently. Dollar rate was also not as high as it is now. I started this business with 3million naira, and to an extent, my shop was almost filled up with gods. The goods in my shop at the moment is worth more than N20 million. My shop would have been extremely filled up if I had N20 million to invest in this business in 2005. So, there is a big difference between when I started and now. You will need to have millions of naira before you can start this business now. This was not the case when I started

For how long have you been doing this Business?

I have been in this business for 17years.

For how much longer do you see yourself doing it?

I have no plans to quit. Selling is my own school, that was what I studied. The only plan I have now is to have more shops in and outside Lagos. Nothing is permanent in life; the government can decide to close down Oyingbo market. I pray that never happens.

Tell us about your ambitions for the future?

I do not intend to do anything yet apart from selling generators and generator parts. However, I could consider selling motor cycle (Okada) parts in the future. You cannot go anywhere in Lagos without coming in contact with Okada riders. Many people have resorted to commuting from one place to another through Okada. This is mostly because of traffic. So, selling Okada parts will be a good business.

Oluwatomi Otuyemi

Oluwatomi Otuyemi, a Geology graduate from Crawford University, has 5 years experience in corporate corporate communications. He has a passion for storytelling, and investigative reporting.

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