SSD MODEL IS NO LONGER SUSTAINABLE - PART VI

While looking at the SSD Model over a period of about forty years, we have seen that the profitability or rather the avenues of getting margins on different activities have slowly disappeared.

Let us recap these in short:

(1) Due to very good quality of machines and compressors being offered with five-year warranty - REPAIR JOBS HAVE COME DOWN.

(2) Owing to high quality refrigerators (frost free, stabilizer free) there is
no repair job on these. - NO TINKERING, PAINTING, REPLACING THERMOSTAT, RELAY, (SERVICING !) NO LONGER AVAILABLE.

(3) Because of minimum use and sale of window air-conditioners -
NO REPAIR, TINKERING, PAINTING JOBS ARE AVAILABLE.

(4) Reluctance of customers to enter into AMC contracts for their machines. On the other hand if maintained in AMC spare parts like PCB's are hard to obtain for the Service provider. (Use and throw culture).

(5) Total absence of customers buying second-hand machines. - RECYCLING OF OLD MACHINES NOT POSSIBLE. EVEN REASONABLY GOOD MACHINES ARE SCRAPPED !!

(6) Additional burden on SSDs by way of Service tax and Sales tax. Though these are collected from customers and paid to Government no doubt, let us see what happens. If we charge Rs.1,500 for installation of split air-conditioner with tax, what we actually get is only Rs.1,315. I have not come across anyone charging Rs.1,500 plus service tax Rs.210 = Rs.1,710. ( I would like to know of anyone charging this way in any State of our country). (Tax calculated at revised 14% for demonstration purpose only).

to be continued...