FUMUGATION SERVICES
Introduction:
This
business idea is for fumigation services. Fumigation is about applying
techniques for killing and controlling pests and rodents in domestic,
commercial and industrial areas. Fumigation services can be offered in
factories, stores, gardens, hotels/restaurants households, offices and schools.
Fumigation services have a relatively high demand and a wide market structure
throughout the year in urban and rural areas. The business idea is premised on
fumigating 65 set- ups or sites per month at an average of $25 per site. The
revenue potential is estimated at US$ 625 per month with a discount of 20%
depending on the size of the area. The total investment required is 1,818.
Coverage
Capacity:
The
coverage capacity depends on the place for fumigating and the number of people
offering the service.
Technology and Process Description:
Fumigation is the process of introducing toxins into the bodies of insects and
pests. The toxins come in form of solids, liquids and powder. The most
important equipment required is the pump which comes in the form of a powder
pump and a liquid pump. The liquid pumps are either manual or mechanized. The
one strapped on the back (knapsack sprayers) usually have a capacity of between
5-20 liters while the mechanized one can have a capacity of between of between
20-100 liters.
Market
Analysis
The domestic market accounts for about 60% of the total market available.
Almost all premises where some work is done need fumigation at one time or
another. This makes the market potential inexhaustible.
Scale of Investment, Capital Investment,
Requirements and
Equipments:
The project is on a small scale investment and capital investment depends on the
intended level of services an investor targets.
Provision
of Service and Operating Costs
Direct Materials, Supplies and Costs in US$
Insecticides and herbicides
|
Item |
Unit |
Unit cost |
Qty/day |
Prod cost/day |
Prod cost/month |
Prod cost/yr |
|
Solid chemicals |
Kgs |
2 |
5 |
10 |
260 |
3,120 |
|
Liquid chemicals |
Ltrs |
2.5 |
3 |
7.5 |
195 |
2,340 |
|
Powder |
Kgs |
2.5 |
5 |
12.5 |
325 |
3,900 |
|
Water |
Ltrs |
0.01 |
100 |
0.5 |
13 |
156 |
|
Sub-total |
113 |
30.5 |
793 |
9,516 |
||
|
General Costs (Overheads) |
||||||
|
Labour |
250 |
3,000 |
||||
|
Other costs |
400 |
4,800 |
||||
|
Depreciation(Asset write off)Exp |
7.65 |
91.81 |
||||
|
Sub-total |
658 |
7,892 |
||||
|
Total Operating Costs |
1,451 |
17,408 |
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit Cost |
Amount |
|
Equipments |
||||
|
Powder Pump |
No |
1 |
100 |
100 |
|
Liquid Pump Macral |
No |
1 |
90 |
90 |
|
Containers |
No |
1 |
35 |
35 |
|
Spoons |
Set |
1 |
6 |
6 |
|
Protective gears |
||||
|
Overalls |
No |
1 |
25 |
25 |
|
Face mask |
No |
1 |
40 |
40 |
|
Gloves |
Pairs |
2 |
7.5 |
56 |
|
Gumboots |
Pairs |
1 |
15 |
15 |
|
Total |
367 |
1. Provision costs assumed are: 156 days per year with a daily capacity of fumigating five sites per day.
2. Depreciation (fixed asset write off) assumes a 4 years’ life of assets written off at 25% per year for all assets.
3. Direct Costs Include: materials, supplies and other costs that directly go into the provision of a service.
Project service costs and price Structure in US$
|
Item |
Qty/ |
Qty/ |
Unit |
Prod |
Unit |
Total revenue |
|
Fumigation |
5 |
780 |
22.32 |
17,407. |
25 |
19,500 |
Profitability Analysis in US$
|
Item |
Per day |
Per Month |
Per/ Yr |
|
Revenue |
125 |
1,625 |
19,500 |
|
Less: Production
and |
112 |
1,451 |
17,408 |
|
Profit |
13 |
174 |
2,092 |