WHY PEOPLE GO BANKRUPT DOING TRUCK BUSINESS IN NIGERIA (1)

 

Truck business in Nigeria is the most profitable and yet most “bankruptable” investment to engage in. What makes the truck business profitable? This is what I will be writing in my upcoming blog posts but why do people go bankrupt after investing so much into the business, this is what we will be looking at in this article.

 I know of a rich man who invested over N40 million in truck heads (also known as tractors) with a 40ft container body attached to them. He is based abroad (like we use to call it). According to him he went into the business because the profit statistics was very good and attractive; the mathematical permutation of earnings after expenses makes the business a goldmine for those who want to diversify their investment(s). To cut the long story short, he invested his fortune into the truck business and in less than 2 years he lost all investment and also incurred a loss in the business. As a matter of fact, I witnessed when he had to sell the last truck head that has been packed for over 1 year for a little less than a million naira. The situation almost destroyed his life. For those who have faced such scenario, I pray God gives you the strength to regain your stand and come out stronger once again! For those who are facing such right now, my advice for you is to read this article.

There are 4 factors that makes people go bankrupt doing truck business in Nigeria they are; The Mechanics, The Drivers, The Managers and The Owners. Let me talk about The Mechanics then I will talk about the rest in episode 2, 3 and 4 respectively.

(There something you need to keep in mind NO MECHANIC CAN BE TRUSTED let that be a constant K)

POOR MODERN TRUCK KNOWLEDGE

Most truck Mechanics in Nigeria are first and foremost a cohort of people who hardly pass through the walls of a classroom and if they do, perhaps at Primary/Secondary school level. They learnt their skills basically from “observation’’ and “experimentation” over the years. Their knowledge in the field is very limited and hardly updated. So once you engage them in modern sophisticated trucks that uses “brain box” for repair, it becomes very difficult for the mechanics and as such they end up experimenting on the truck until it is abandoned. So rule 1: do not buy trucks that come with “brain box”. They are good in “manual engine” trucks whose production is dated in the 70’s. If you buy the sophisticated truck and you engage the mechanics to repair it, there is a tendency that you will spend a lot of money in trying to repair these trucks, the trucks will also loss productive-time and you might end up just parking them in your truck-yard at the end of the day (but if you are sure you have a professional that can repair it for you then you may go ahead but then look into the COST and availability of parts).

INFLATION OF PRICE

The mechanic knows that the owner hardly knows anything about the truck parts so they will take advantage of that and inflate prices of truck parts. You can imagine a mechanic quoting a “turbo charger” for a Renault Mack truck for N150,000 when in actual fact it is less than N40,000. So rule 2: ensure you know your truck parts, price, and where to buy them (please note that they will still have their way with regards to having a percentage gain on the price through inflating workmanship fee or bargaining with the seller but it will be minimal).  

QUOTING OF WRONG TRUCK PARTS

If you want to make profit and not go bankrupt, then it’s high time you ensure the damaged part(s) of the trucks are tested and removed in your presence, then you get involved in the purchasing. So rule 3: be there when truck parts will be removed and tested before purchasing.

REMOVAL AND SALE OF TRUCK PARTS WITHOUT THE CONSENT OF THE OWNER

Due to lack of knowledge about truck parts on the part of the owner, the mechanics takes advantage of the repair period to remove the truck parts and may sell it or use it to repair other trucks. The amazing is that you will end up buying that same truck part because they will quote it for you. So rule 4: Take stock of what is working or not working in your truck if you must leave it at the mechanic workshop.

Just like I said above, “no mechanic can be trusted’’ they are human and extremely fallible when it comes to corruption! If you can do those things that I have listed above, you are sure of getting a fair share of your investment in the business. Till I see you again for the 2 episode on “The Driver” keep learning.

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