Sunday, March 29, 2015


We saw how the revenue stream for a SSD gradually got diminished over the years.

But there was a silver lining. Companies stopped local manufacture of air-conditioners and went in for
global sourcing (Mostly China). The machines were of very good quality and people found that they
could now buy "imported" goods right here from Indian companies.

In the initial years (2000 to 2005 say) SSDs were the first to become dealers for AC Brands and
sales picked up with good margins. They were able to make a reasonable marging in the unit, the
stabilizer and installation charges.

Around the year 2005 air-conditioners became a "commodity".  Appliances stores began to
buy air-conditioners in bulk and started selling them at prices much lesser than the SSDs.
Since they were buying in bulk at negotiated prices the SSDs without much muscle power were
slowly losing the grip on sales.

There was also another handicap. Mechanics working in SSDs were lured into becoming contractors.
Those who were working in SSDs and earning upto 10K found that by installing one or two splits
per day they could easily earn upto 20K per month!  Of course, it was good for them, but put the
SSDs in a bad corner. Not only that, the mechanics took away the trainees and helpers along with
them to form a team!

When competition heated up all sorts of freebies were offered. Free stabilizer, free installation and so on.

So what has happened to the SSD in the meantime? No revenue stream, no sales, no mechanics....
The troubles only increased!

to be continued....

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