Keep trying....

This happened some twenty five years back.
But even today one could learn a lesson.

Two friends, A and B.  A is a lakhpathi and CEO in a large corporate. (within the next few
years he started his own business and became  a crorepathi.) B is a friend of his, a businessman
and a crorepathi.

A and B and others used to frequently meet over drinks. It seems that one day over drinks
B had told that he is going to replace couple of his air-conditioners. A had asked for two
air-conditioners. B might have said something like, "Sure, anyway I am going to throw them".

Now this A was our well wisher. He used to give us a lot of business and of course he was a
very nice gentleman, no doubt. A told us to go to B's office, meet him and ask for the air-conditioners.

We (me and my friend) went to his office. We were made to wait a long time and finally
when we met B he was very kind but gave an evasive reply.

I told my friend that over drinks people promise so many things and needs to be confirmed
the next day afternoon!!!

We told A that B was evasive and in fact he didn't seem to have any units.

But, but wait, A just told us, "Keep trying".

Subsequently though I was least interested, my friend wanted to please A and so
we went to B's office a few times. All his staff became our close friends. Deepavali came
and we were given sweets.

But the story does not end here.

Sometime later B took on rent a huge office space in a prime locality belonging to A !!!

And he placed an order with us to supply eight air-conditioners.

We should understand that an order for eight air-conditioners is like getting an order for
one hundred air-conditioners today.

Are you a salesman or businessman or both?!!

You know your mantra now:  "KEEP TRYING"

PSE (Public Sector Enterprise)

I supplied a few air-conditioners to a Public Sector Enterprise.

They ordered the machines in a great hurry three months back.
Said they would pay 50% advance for the machines on delivery and the balance after installation. Reluctantly we agreed.

The reason was that my wife's uncle was the top man in that company some 45 years back!! I had a soft corner for the company!

Once the machines were delivered, they didn't even tell us where some are to be installed for almost two months!!

After completing the work we submitted the bills and they said, "Wait for a few days".

Two more weeks and they said "We are waiting for fund transfer from Government".

Today they are asking us whether we have submitted our bill !!

Even a snail will move faster I suppose !!

You want to be a sucker?

You want to be a sucker then it is your choice !!
======================================

A customer rang me up and wanted an item costing around 10K
to be sent to them.
They had purchased some items from us in the past, but their payments were very sticky. It was a pain collecting the payment.
So I told them to send a scan copy of advance cheque and I would ask
my company to send the item to them.
We are your regular buyers.... the customer said. I still said "Sorry".
After some time customer rings me up and says " If you are not sending
the item I will go to T.Nagar right now and purchase it".
I told him: You are ready to go all the way to the shop and buy for cash but are not willing to send me a scan copy of your cheque?

FDI in construction business

A lot of foreign investors invest in Indian construction companies. And there are foreign architects who design homes.

That is fine. But they should study the Indian scenario and the needs of the Indian people and then design the homes. The modern apartments do not have grilles for the windows!! They would design an apartment with floor area of close to 2000 sq.ft. but there would neither be a pooja room nor a store room!!

A little over two months back a company with FDI in the construction business after negotiation entered into a contract with us for the supply of a quantity of air-conditioners. But they never made the advance payment. Around a fortnight back I asked them and they said the cheque has been received. When I sent my representative they didn't give the cheque. They said they would come and give it to us.

A few days later when contacted they said there is some delay in the project and that they would make the payment five days before they actually needed the machines and kept the delivery date open ended.

It is fine. We have not supplied the machines to them. But machines earmarked for them are lying in our godown and we are staring at them every day!!

A manager may say " Come rain or shine I want the job to be done. I want only results."
But there is something known as ground reality.
It is monsoon season and nobody would start any building activity right now. Also construction work here would not start before bhoomi pooja and this is usually done after Pongal. That is the practice.

Come on,  as prudent businessmen we should be able to foresee such eventualities!!

How to collect money!

Let us talk about how to collect money (as a wage).

The difference between a worker and a business manager is this:

Worker: He does his work and collects his wages.

Manager: He should give the work to the worker, oversee his working, raise the bill after proper paperwork, collect the money, put it in his company's account and then take his wage !!

A worker cannot become a manager (maybe a very few over a matter of time).

A manager should not act like a worker !!

"Everyone rises to their level of incompetence."
Laurence J. Peter, "The Peter Principle"

How I SNAPped a DEAL !!

How I SNAPped a DEAL !!
=====================
Everyone wishes to do on-line business these days.
Who doesn't want to?
A friend of mine wanted me to explore the possibilities
of doing on-line sales of air-conditioners via the bigwigs.
I know it won't work, but still....
Even I,  am a human being craving for more business!!
So what do I do?
Very simple, because these guys are dogging you every
other day on the mobile....
I asked one of the guys to meet me and discuss their proposal.
R.E. (Relationship Executive)
Oh what fancy names and jargon these days!!
R.E. Sir you have to register with us online and you are ready!
Me: And then?
R.E. You give us a list of items you have to be sold and the price you want for the items!
Me: (Wow!) OK, and then what happens?
R.E. If an item with you is sold, we come and "take it away".
Me:(Oh wonderful!!) But the price to be quoted by me will
be more than what you normally display in your web-site.....
R.E. (ha, ha) With our deals we may even sell you item for
Rs.1000 or Rs.2000  less than what we pay you....
Me: WHAT ABOUT MY PAYMENT?
R.E. It will be done in a fifteen day cycle.
(Note: When I buy a good from somebody, I am responsible for the payment. I have an address and I am available all the time. Here somebody wants to take away my item/s and says "it will be done")
Me: Thank you very much. I will let you know. (The exit door is right behind you).
More later....

Sales and money inflow

Sales and money inflow.
===================

I have explained on scores of occasions to my staff and at times even to some owners of businesses (not that they don't know)
that when I sell an air-conditioner for say Rs.30,000 and get the money.....  only about Rs.1,000 or so out of that can really be considered as MY money ( that is to say the company or firm's money). The balance of Rs.29,000 or so is to be used to buy another air-conditioner to be subsequently sold.

Many people don't understand or don't want to understand this simple logic. They think that they have "made" Rs.30,000 and spend it off.

Well, one can do that. But that Rs.29,000 has to be recouped by some revenue stream - by sales or service revenue. Very soon.

If one does not do this exercise then what happens? (a) The working capital will get eroded. (b) The money owed to suppliers will shoot up. What could happen "one fine morning" anyone can imagine. Let us not go into the details.

Some of the new-age dealers are very smart (like the on-line shops). They try to sell more and more of units at very  low margins or sometimes even with negative margin (to keep the revenue stream (so called!) flowing. Many are in deep waters for this very reason.

All of the business' fixed and variable overheads has to be met with the "margin" generated by sales and service and after that some thing more should remain as reserve/surplus.

Then and only then can the business thrive!