Effective Ways to Run a Rice Business in Indonesia

Rice Selling Busines

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Indonesia is the third-largest country in the world behind China and India in terms of rice production. 

It is not surprising that rice is a primary need in Indonesia, and in so many countries, including Nigeria, Thailand, et cetera, so many entrepreneurs want to run a rice trading business.

This article will teach you five effective ways you can run a rice business in Indonesia. 

And is not restricted to Indonesia alone; you can carry out this practice in many countries that produce and consume rice a lot.

So, here we go:

How to do the Packaged Rice Business

Rice is a staple food product in Indonesia; therefore, demand for rice sales in Indonesia is very high compared to other countries.

Due to consumers's high market demand, many young entrepreneurs and established ones are getting a little bit tempted by this business.

So how do you do a rice trading business with more efficient packaging? Here are several ways to do a rice trading business, including: 

1. Prepare measuring tools and packaging

Packaging is an important factor in running a rice-selling business because it is the first thing consumers see before buying rice.

Sellers should use packaging that is environmentally friendly and not easily damaged.

2. Determine the target market

The target market must be considered before doing business, as well as when you want to run a packaged rice business. 

Because when you sell products without knowing the target market, it will be difficult to sell, and business success will not be optimal.

3. Improve product quality and maintain maximum service

Good and friendly service is the key to the success of a business, because with friendliness, buyers will feel comfortable and will come again to buy your products.

When your product is of high quality, there is a high possibility that your buyers will become regular customers.

They'll always choose your product and even spread the word about it to their friends and loved ones.

4. Innovate in running your business

Creating new innovations will attract buyers; for example, you can make coupons that can be exchanged when you have collected a lot, or you can give discounts to customers for certain products.

How to Market the Rice

The right marketing strategy will make it easier for you to run your business. 

The following are ways to market products, including:

1. Strategic location

The problem that often arises in every business is finding a suitable place to sell. You must determine a suitable place for your business.

For example, why do housewives prefer to buy rice at traditional markets?

This is because, apart from buying rice, they can buy other necessities because the market has many choices.

2. Types of rice and prices

Offer all the widely consumed rice kinds by consumers; the large variety can give consumers choices according to their needs.

For the selling price, carry out a survey at rice shops that are busy with buyers. 

In the strategy for determining the selling price, set a relatively cheap price for rice that many consumers are interested in.

Types of Rice

The thing you need to pay attention to before starting a rice trading business is knowing the type of rice and its quality. 

All types of rice must meet the qualitative requirements. What conditions must be met?

  1. Free from pests: In trade, it is not permitted to sell rice that has pests; pests in this case are usually called rice lice.
  2. Rice must be free from rancid odor and not have a sour smell.
  3. Not mixed with chemicals.

The criteria used to determine between premium rice and non-premium rice can be determined by the physical nature of the rice.

It can be judged by the presence or absence of stones or gravel, grains still present, yellow or damaged grains, groats, and so on.

The following are the criteria for premium rice, including:

  1. Having a sososh degree means that the rice is pure white; after being peeled from the rice grain, it is peeled again in the second layer.
  2. The water content of premium rice is around 14%, so rice with a water content above that is included in the medium type of rice.
  3. Head rice, namely rice that has a minimum size of 85% of standard rice.
  4. Broken rice in premium rice can only be around 5%.
  5. Premium rice must not contain red grains, yellow grains, chalky grains, or foreign matter grains.

Based on this, prospective rice entrepreneurs can find out the standards used in determining types of rice using established standards.

Rice-selling business

Rice is processed rice and is everyone's staple food. The need for the staple ingredient rice is never-ending, and the staple ingredient rice is easy to sell because everyone needs it.

How to Run a Profitable Rice Business

If you want to sell rice, who are your target consumers? If you are targeting the final consumer, then you need quite a lot of capital.

Meanwhile, if you want to sell rice by meeting the needs of other sellers, the job prospects are more profitable.

Selling rice does require capital that is not small; the profit from selling it is not that big. For example, if you buy rice for around 8,000 per kg, if you sell it again, the most expensive is 9,000 or even 8,500, meaning the profit you get is less than 2,000 per kg.

If you have more capital, it is advisable to become a rice business agent by stocking rice and looking for shops that will accommodate your rice.

Provide attractive offers so that consumers choose to buy your rice. The profits can be many times over, not only per kg but per sack, per quintal, and even per ton.

The circulation of money is faster than selling directly to the final consumer; the system is easier; you only stock the shop's needs.

The shop has already paid for the products, so there is no need to serve buyers one by one. You can focus on developing your rice business in large quantities.

If you want to do rice business at a decent price, you should look for a rice agent with good job prospects. 

You also have to pay attention to the availability of rice, as well as the price and quality offered by the agent.

Or, if you want to get a cheap price, you can come to one of the rice shops and buy the rice directly from the farmer.

The final way is to work with farmers, buy the harvest, and then harvest it yourself, but this method requires estimates and good knowledge.

It may be a bit of a hassle for you because you have to cover the rice yourself, but you can use the remaining rice bran, namely bran or rice bran, which you can sell to farmers.

To compete with other sellers, you need to provide the best service, provide complete stock, or try to provide extra service by taking the product to its destination.

Competition in the rice business is very tight; you need to make new innovations to attract buyers' attention so that consumers become loyal customers.

As explained above, selling rice requires a lot of capital and profits are small, but because rice is a basic necessity, it remains a profitable business option.

To increase profits, you need to increase capital by turning over capital more quickly so that minimal profits can be covered by the quantity of sales. 

Keep trying and working hard, and then you will also enjoy the results of your efforts.

How to do Rice-selling Rusiness Online

Utilizing social media can increase profits in business. Here's how to market rice products online:

1. Pay attention to the quality of the rice that will be traded

In Indonesia, there are many varieties of rice, for example, rojolele rice, fragrant pandan, or ramos. 

Apart from that, there are various colors and types of rice, such as red rice, white rice, black rice, black sticky rice, and white sticky rice.

You should really understand the quality of the product that will be marketed.

2. Product promotion

Do promotions well. You can use social media, which will definitely help you market your product.

You can also create a website; that way, you can provide clear information about the products you sell.

The more detailed the explanation about your product, the more interested consumers will be in the product you are marketing.

To make sales easier, there's nothing wrong with using social media. 

This method is certainly faster and more efficient, because consumers can see the products and types you are selling.

3. Goods delivery system

To make product delivery easier, you can provide a certain minimum order. That way, you can deliver goods without worrying about losses.

4. Pay attention to product prices

Product prices should follow current market prices. If you collaborate with farmers directly, you can reduce production prices and the price of goods.

If there are frequent price changes, then update the prices so that consumers are not confused and can buy products without worrying about price increases.

How to Market an Organic Rice

Organic rice is rice that is cultivated without using chemicals such as fertilizers and pesticides.

One type of rice that can be grown organically is red rice. 

The advantage of red rice is that it contains quite high levels of vitamins B1, B6, and B12. In general, vitamin B can help form energy in humans.

Apart from that, brown rice has a higher fiber content than white rice. Here's how to market organic brown rice:

1. Know the target market

Your business will be successful if you understand the target market you are aiming for. 

For example, the biggest target for brown rice products is the upper middle class because the price is more expensive than regular rice.

2. Create the right brand name

The organic rice you sell must have a brand that is easy to remember; preferably, the brand is related to health. It will be easier for you to sell because the brand is related to health.

Usually, consumers do not hesitate to buy, even though the price is relatively expensive, because your product is considered to have benefits and uses in the health sector.

3. Correct communication style

The communication style used in product marketing is in accordance with the target market's mindset; communication must be educational, healthy, and promote the values of organic farming and the environment.

Educational communication involves explaining the differences between organic rice and regular rice. Through marketing education services.

It's best if you have a special service to answer all questions about organic rice and also a product marketing center with delivery services. 

Write your contact details on the product packaging so that consumers can make contact with your company.

4. Exhibition

You can also introduce the rice products you sell through exhibitions.

Choose an exhibition that suits the character of the product, for example, a healthy food exhibition or one related to health.

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