My 2 paisas

My business plans

Posted on: December 31, 2007

Wholesale dealer::::

Well my constant thoughts about coming out of software industry made me think of another oppurtunity which i can harness. In our village, a general store owner buys the goods from different ‘line sellers’.That is,
there are different line sellers who buy goods from the distributors and then they distribute it to different general stores in the village and the neighboring villages. This system increases the number of people in between the customer and company due to which the customer has to pay more as the line seller will add his own profit.
But what i thought was what if this line sellers could be eliminated by one person getting all the goods from the distributors(or company) and directly sell it to the general store owners.
This has many advantages:
1) The shop owner will not have to deal with many line sellers, instead he only has to deal with one single distributor who will deliver all the goods ordered by him to his shop.
2) The shop owner can also be given debt by the distributor which the line seller could not provide as line seller himself had to make payments to the distributor.
3) The cost of the product becomes less as the distributor will be buying goods in much more quantity from the company then the line seller as his market is more bigger and not restricted to some villages.
This has some disadvantages or problems to overcome also:
1) Many line sellers will become unemployed which is matter of concern as line selling is usually their only means of earning. Though the wholesale dealer can employ them but he wont be able to give them the same salary as much they earned during line selling but he can assure them guaranteed salary as against the profit which was very much depended on season and the market.
2) Huge capital is required. As a big place is required to store the goods and it should be in a very strategic place, so that it is comfortable to go to all the villages from there. A truck is also required to deliver the goods.
3) Loyal and efficient man power is required which is very rare in India.

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1 Response to "My business plans"

OLD MAGAZINE SELLER :::I got this idea in my 12th std. when i had gone to librarian to ask about the posters that are attached with the SPORTSTAR magazine. He told me that they used to give all the magazines along with posters and other suppliments for the paper recycle guy. i was shocked when he told me this. because magazines,each worth Rs.100 were just given to recycle guy at mere Rs. 10-15/kg. that is when it occurred to me that if the paper recycler guy sold the book to some children at even half or 1/4th of the original price, he could make huge profits and he would also be doing a very noble job. Magazines like ELECTRONICS FOR YOU and CHAMPAK, contain those contents that dont change with time as against to magazines like THE WEEK or SPORTSTAR. And school children who like to buy such magazines but are not able to buy it due its high cost will certainly like to buy old editions of such magazines. hence all the OLD MAGAZINE SELLER has to do is buy the magazines from big colleges and sell it in front of some higher secondary school.

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