Thursday, March 19, 2020

Learn about money (Lesson 4)

MONEY IS AN ILLUSION 

Bheema Vegetable market runs successfully,after he follows ram's advice."CHANGE IS INEVITABLE" is a phrase which is truth of the universe,however bheema always hates any bit change in his professional or personal life. Ram accepts it as a part of life and walks with it,he also himself updates with required information in this process he gets to know about " agritech startup" a new wave transformation in agriculture.  He further studies their buisness model and gets to know that his friend needs to get out of the old business model to stay in the market.

RAM: Hi bheema,   listen carefully.

BHEEMA: Sit down, and enjoy the hospitality I have arranged for you,we can take later.

RAM: It is very important.

BHEEMA: R u teaching me about importance? ( showing his ego)

RAM: Sits down and enjoys hospitality of his friend.

BHEEMA: Yes what were you saying.

RAM: You must change your buisness model.

BHEEMA: For what, I am hearing a silly advice from you.

RAM: No, listen to me.

BHEEMA: Then what?

RAM: The model which the present startup is going to bring is "connecting platforms" between farmer(seller) and buyer in return the startup gets a certain amount as comission just as Amazon.

BHEEMA: Even I am doing the same.

RAM: No, you are as a middleman between those seller and buyer because you buy from farmer at whole sale price and sell to the customer at retail price,but startup connects them both.

BHEEMA: Explain me with an example.

RAM: You are buying 25 kg of carrot at 1000 rupee from the farmer(cost estimate for producing 1 kg of carrot is 35 rupee) (farmer gets rupee 5 per kg )and sell each kilo at 60 per kg there by making a profit of 20 per kg however the new startup will connect the farmer to buyer where the farmer negotiate 50 rupee per kg ( he gets 15 rupee as profit) and the buyer buys it for 50 rupee. The rest five rupees the company takes it as commission.
 
BHEEMA: This model won't be successful

RAM: Farmer is getting more profit consumer is getting same product,quality and quantity at cheaper even the startup is making money, why it wouldn't be successful.

BHEEMA: Is five rupees enough for the startup.

RAM : They approach the buyers directly so they have larger market access(PG and Hostels) and promise them to deliver products which is sourced from farmers directly,which leads to high chance of accepting deal by consumers.

BHEEMA: Oh my God.
LESSON LEARNED 
MONEY IS AN ILLUSION,IT WILL BE IN THE HANDS OF THE PEOPLE WHO DELIVER HIGH VALUE.


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