Making Money From Ice Block Machine

Ice block sales business involves the use of deep freezer to make ice block in plastic container or polythene bags. The business involves the production of solid ice block by putting clean water in any small container in order to make difference sizes of ice block available to consumer of different categories. These businesses thrive well in areas where there is incessant power outage, and also in over-populated places like motor parks, market places, schools, commercial and business areas, any place there are human beings and activities demand a cooling off either by a bottle of cold drink or a wrap of sachet water (pure water).The type of deep freezer use in the production of ice block is the electronic deep freezer with a high capacity compressor and the capacity of blocking is 136 litres of water into ice block. Deep freezer (136 litres capacity) cost an average of N45,000, while Generator average N35,000 and stabilizer N5,000 and plastic container (30packs) N600 or polythene bags.

Business prospects

Ice block making is a good investment for any business-minded person because with the increase in the number of producers of packaged water, carbonated soft drinks, fruit juices, ice-creams and yogurts in diverse areas, ice blocks help to make these products more enjoyable in quenching the thirst of consumers. Again, these ice blocks preserve these consumables for a longer time pending when they would be purchased.

Also, it is a venture that allows you time to do other things. It’s also a good business for any potential entrepreneur to start up for himself while he has another job on the side. Another prospect of this venture is that the target market is wide and varied, and if the product is not needed at the individual level, there are organizations whose products or consumer items require constant icing. Also, Nigerians who host parties or social gatherings needs to provide cold drinks, bottled water or sachet water for the guests.

On the other hand, this business thrives more during the dry season and in ice block business, you can reap your investment back in no time.

What then does it take starting this venture?

The good thing about this business is that you can start it from the comfort of your room on a very small scale. All you need is to first and foremost know your environment and identify your buyers,  acquire an deep freezer, or preferably an ice-block making machine; a neat source of water supply and nylon bags. Then you can also have a bus or car that takes your ice blocks to your target market apart from those who come to buy from your home or shop.

“I advise that in this line of business, take time to inquire and understand where to site your ice block factory. First, identify and secure your buyers. Then, it is very important to have some form of mobility to help in supplying your blocks to clients in diverse areas. But, I wouldn’t advise beginners to operate mainly with generator because it would triple the cost of your blocks.”
MACHINES. There are two types of ice block making machines.
1) locally fabricated(Fabricated or anti freeze) ,( 2) imported or automatic
As for locally made machines you find them in Ibadan and Lagos. You will get more reliable ones with their contact in my ebook.However, Ibadan appears to command a higher percentage of the makers. Prices differ from maker to maker and this depends on many factors. Some of the factors are Size of the Machine, The freezing period ,Quantity of blocks,
No of compressors (Two machines of the same size with different number of compressors will differ in price.),Size of compressors(2HP, 2.5HP or even 3HP),Whether the compressors are used(tokubo) or new.
The most common machine by local manufacturers is the one built to make 25 rectangular blocks and this goes for about N200,000 depending on who is making it and what materials he is using.
MARKETING. You either sell directly to users or retailers who come to your plant to pack them and sell to users. There are some wholesaler that comes to you to buy and before 7;30am all your products are gone(You are the manufacturer),but there is price reduction for them, because they resell. If you are selling to users it means you will need a depot and freezers to keep the blocks in shape till they are sold. This of course means more expenses on transportation, space, and cost of labour. You will have to do your cost and benefit analysis to decide, but if you ask me I will say let the retailers carry from your plant and reduce your worries. But you must be current of prices otherwise the wholesalers will cut your throat.
PRICING: During the dry season the price is naturally higher. During this period you can sell a block to the wholesalers for as high as N120 but during the raining season they may refuse to take it for N70. Weather, season and competition affect your pricing. You ask questions and feel the market to arrive at your price and this may vary on daily basis. You just have to be current.
PROFITABILITY: This is the crux of the matter. Is this business profitable? Yes if current is stable. Even if you are selling a block for N20 you cannot lose. With stable current your machine will freeze more quickly and the machine will last longer. Your raw material is water and all you pay for is the labour that fills in the water and harvest the blocks and of course electricity bill which may not amount to much. No business can be better.
However if current is erratic as we have in many cities these days, it becomes another kettle of fish altogether. If you freeze for 10 hours and the light goes for another 24 hours you get back to square one and remember your compressors have been running. Not only that, erratic supply of electricity shortens the life of your compressors
Generator? We shall see presently. You add a Chinese 15KV generator .You power with diesel at N105 per litre and run
for 20 hours or even 24 hours. This works out at N2100 for fuel alone for one
production. Let us assume you sell for N100 per block, your 250 blocks machine will gross N25,0000. OK, Please when you are starting new don't employ ,do it with your wife and children,is not hard to do.
Machine maintenance for the generator and other inputs budget 50 Blocks which is #5,000,and the rest is your profit.Generator is the backbone of this business,for you to maximize your profit on time.