Saturday, March 10, 2012

Window dressing and creative accounting



These days we hear of window dressing, creative accounting and so on.

In today's world which is full of scams, these words have a negative connotation.

But in the good old days, there was creativity. But it did not affect anyone.

When we began our air-conditioning business, we used to meticulously prepare quotes.

Here is an example:

(1) To cut open the compressor of your Air-temp 1.5 ton window
air-conditioner, rewinding the stator coils with freon resistant
S.E. copper wire, cleaning, assembling, welding and testing ... ... ... ... Rs. 500

(2) To dehydration evacuation and charging the system
with fresh gas ... ... ... Rs.450

(3) To replacing the electrical parts ... ... ... Rs. 300

(4) To collection and delivery charges ... ... ... Rs. 100
=========
Total: Rs.1,350
=========

After a few weeks, we became creative and charged Rs.50 for transportation instead of
Rs.100.

You see, the collection and delivery charges is something with which the customer can relate to, easily compare and come to some conclusion whether our quote is reasonable. When we charge Rs.50 instead of Rs.100, when the going rate is Rs.50 to Rs.80, then half the battle of haggling is won!

We used to get our quotes approved with minimum alterations in the figures!!

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