Tippers are used for a variety of haulage in Nigeria as elsewhere in the world. They are used to carry sand, granite, asphalt, and other items used for construction and which must be conveyed from one location to another. One wonders how construction works generally could have been executed without the use of tippers for conveyance of items.
The first stage of going into tipper business is to do some feasibility studies and raise fund to buy a strong tipper. Current estimates show that a good tipper cost ranges from Four Million Naira (N4,000,000.00) to Five Million Naira (N5,000,000.00). Added to that is the cost of vehicle particulars and registration with the National Union of Road Transport Workers (NURTW).
Options of Running Tipper Business
There are about three methods of using one’s tipper to do business in Nigeria. The methods are explained as follows:
1. Operating as an Independent Transporter
This is the most common method where the owner may decide to operate the tipper by himself or hire a driver to operate it using the vehicle to convey items for whoever needs such services.
In this system, the amount per trip is negotiated and the number of trips is calculated for daily payment. It is calculated that if there are no serious mechanical problems, a tipper owner operating under this system can make up to Four Hundred Thousand Naira (N400,000.00) per month as net profit.
2. Running The Tipper Business As A Contractor Or Subcontractor
In this method of operation, the tipper owner will look for a big multinational company or a construction company which will use the tipper. The company may decide to manage the vehicle as well as the process of hiring and paying the driver; or it may ask the owner to provide a driver with the tipper and work under the direction of such company.
At the end of each month, the company will pay the owner an agreed amount of money, which ranges from Three Hundred and Fifty Thousand Naira (N350,000.00) to Six Hundred and Fifty Thousand Naira (N650,000.00) depending on the type of tipper.
Alternatively, the company may decide to pay a fixed amount for each trip made on a particular distance, if that is to the liking of the owner. This alternative method, calls for logging of daily operations.
To engage in this method of tipper operation, the owner would have to register the vehicle with the client company and also be obliged to service or maintain it regularly.
3. Leasing The Tipper to a Company
In this method, the owner leases the tipper fully to a company, especially a construction firm, to be used for a particular period. Depending on the work on hand, some firms could hire a tipper for six months, one year or even more.
Under the leasing arrangement, the client company may take care of fueling expenses and monthly maintenance, except for major repairs.
Under this arrangement, the owner may be paid monthly, quarterly, semi-annually or annually depending on his preference and what is convenient for the client company.
A tipper owner who leases out a tipper to a company, can rake home between Four Hundred Thousand (N400,000.00) and Seven Hundred Thousand (N700,000.00) monthly on the average.
How do I get an MoU to lease my truck to a respectable company, for a long period?