This post is all about the best tips you would need to take cognizance of before starting Keke Napep Business in Nigeria.
Keke Napep is know in Nigeria with various names, from Keke Napep, to Keke Maruwa, to Tricycle, to Ha-dai dai ta Sohur, in Hausa and several others.
If you’r living in Northern, Southern, Western or Eastern Nigeria, you might have come across various tricycles, plying the Nigerian roads. Though, some States have been restricted from using them.
Keke Napep business in Nigeria is a lucrative business, just like starting any legit online business in Nigeria, provided you know some of the intricacies that surrounds it.
Whether you want give it out for someone to ride for you as an entrepreneur or you want to ride it yourself. This post might become handy.
Though this post focuses on the posit that, you want to give it out for someone to ply it for you.
Just like any transportation business, it comes with its challenges and things necessary for investors to take note of.
To delve into Keke Napep Business, there are some vital things to consider which are highlighted below.
Important Factors to consider for Keke Napep Business:
- Buying New or Fairly used type
- Mode of Remittance
- Reliability of the driver
Buying New or Fairly used Keke Napep:
The question has always been to buy a new Keke Napep or to buy a fairly used one.
If you are looking forward to make fast cash and quickly recover your investment it is best to get good fairly used Keke Napep as it goes for around 140K Naira.
When the price of a fairly used Keke Napep is compared with a new one you get almost 470K price cut. New Keke Napep sales for around 650K Naira to 700K Naira.
When you factor this out, you would easily deduce that it is much better to settle for a fairly used Keke Napep, than to go for a new one as an investor.
So doing, reduces the risk associated with the business to a great extent.
In addition, the capital spent towards acquiring the Keke Napep, can easily be recovered at the shortest time possible.
Say for example, if you had spent 150K Naira acquiring a Keke Napep, you can easily recover the capital within three or four months depending on the location.
However, this analogy can not be used for a new Keke Napep.
Thus, making up the capital would require more time, thereby exposing the business or making it subceptible to possible risk. Mostly due to several factors like, lack of remittance or other external human factors which usually emanates from the Keke Napep driver.
Therefore, the bottom line to this business is to get a good second hand or fairly used Keke Napep with a sound engine that could still work well for say 2 years.
Don’t be dissuaded by hearsays of how, acquiring new Keke Napep is much more better than getting a fairly used one.
Remember, we all want to get our capital as quickly as possible and start making profit on top.
This brings us to the next point which is the mode of remittance.
Mode of Remittance:
The mode of Remittance is also an important factor to consider when delving into Keke Napep business.
Factors that determines the amount of time it takes for a Keke Napep buying money to be recovered would depend greatly, whether the Keke Napep is a new one or old type.
Another factor is whether the person you want to assign as the driver of the Keke Napep would work on Weekends.
Some Keke Napep, mostly during Sundays would prefer remittance money would be channeled towards the maintenance of the Keke Napep.
That is, every Sunday, remittance money isn’t neglected, instead it’s channeled towards the maintenance of the Keke Napep.
The last factor which usually determines the amount of time to complete paying the money for the Keke Napep, would depend on the agreed amount of money the driver is to pay back over the calculated payment months.
There are two major Remittance type for Keke Napep business. These are:
- Daily or Weekly Remittance
- Hire Purchase
Based on experience, it is preferably to stick with the Hire Purchase mode of Remittance.
This is because, employing the daily or weekly remittance might be quite difficult and drivers might be inconsistent in delivery of the remittance. And instead, come up with excuses.
In order to avoid the issues that come with drivers, it is better to employ the Hire Purchase mode of Remittance for your Keke Napep business.
Daily or weekly mode of remitting money made from Keke Napep as the name implies simply means the driver of the Keke Napep, remits the agreed daily or weekly amount to you.
Depending on the location, daily remittance, usually is around 1500 Naira to 2000 Naira or 3000 Naira which are all subject to negotiations.
Therefore, do the maths for weekly remittance, that’s around 14K Naira. This brings us to the next type of remittance, Hire Purchase.
In Hire Purchase, it simply means after a period of time the ownership of the Keke Napep is handed to the driver.
That is the driver pays a particular percentage of the buying price and the profit you intend to make on the Keke Napep instantly, after wards remits money on a daily or weekly basis to fulfill the remaining price.
For example, let’s say you buy a fairly used Keke Napep for around 150K thousand, you can decide to put it out on Hire Purchase for 325K.
Then, demand the intending driver to commit himself with 25K. Then the remaining 300K with daily remittance of 2500 Naira will be completed in 4 months time.
The cost of maintenance and other repairs will be on the driver.
This is just an example, of a scenerio of Hire Purchase. Thus, Hire Purchase immunes the investor in some ways when compared to the daily remittance practice.
Because, as humans and based on psychology everyone would intend to properly maintain what is theirs(Hire Purchase), thus, making you free from driver manipulative behaviors or ruining the Keke Napep. And also, the cost of maintenance is on the Keke Driver.
Brands of Keke Napep to Buy:
The most popular brand is the TVS model due to its ubiquitous nature and availability of spare parts when faulty.
The TVS brand of Keke Napep is the most popular in the Nigeria clime. Other models of Keke Napep are given thus as:
To easily make up the capital expended into the Keke Napep business, it is first advisable to take cognizance and imbibe on the following tips:
Keke Napep Business Tips:
- Buy a good fairly used Keke Napep. Ensure you go with an experienced mechanic, to ascertain the level of reliability and depreciation.
- Use the Hire Purchase strategy.
- Get a reliable driver, preferably a youth not married.
- Write an agreement and ensure the driver brings two sureties or guarantors.
- If you’re going the Hire Purchase way, the driver takes care of the Keke Napep Maintenance.
- Obtain all the necessary papers needed for the Keke Napep.
- Register the Keke Napep in driving association in the location.
- Educate the driver or the buyer of the Keke Napep on the need for timely engine oil replacement.
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