Saturday, April 4, 2015

SSD Model is no longer sustainable - Part XII

It was seen that the rise and fall of SSDs can be attributed to Sales.

The revenue from Sales/Service being around 70/30 revenues have dropped because
the realisation per machine has come down drastically.

SSDs could get back to the growth track if:

(1) They do not resort to selling only air-conditioners. The units should be sold only
if installation income of Rs.1500 plus is received with each unit.

(2) All installation should be done by SSDs own team.

(3) Overhead expenditure has to be cut down as much as possible.

(4) All activity to be concentrated within a radius of 5 or 10 kms depending
upon the size of the SSD.

(5) They should concentrate on building the team of technicians, who stay and
grow with them. (This is easily said than done!!)

(6) Last but not least, they should scout for alternate sources of income. (some
other associated business).

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