Tuesday, September 2, 2014

How corporates Looting more Money from Common Man?

During my Brother's Marriage time, My additional Leave was little bit utilized to help my father at Karthik Stores. Below are my observations.

1. My father used to order Hindustan Unilever Products, Cadbury Products, GSK...etc from Agency during my school days. Order memo was very simple and Payment terms also very simple. In tooth paste section, we used to have Colgate, Close-up, Pepsodent, Vicco, Dabur. Only close-up had 2 variants ( Red and Blue). SKUs are Manageable. So Order memo and Delivery was very simple. Payment Terms used to be 30 Days credit or until next order memo.

- But Now, Order memo is 4 page Computer Printout with "N" Number of SKUs. Such a Simple Soap Lifebouy, has atleast 7 variants by falavors. 3 Variants by weight. So totally 21 variants. My daddy is having tough time manage Infinite variants from each Company each brand. End users are also having their own taste, so we cant ignore each variants. My daddy bought 3 nos to 12 nos in each variants based on previous sales experience and few are based in Beta testing. Credit period also reduced to 1 week-10 days max. Such a large capital is Blocked and some may not even move & stays as inventory.

Small shop owners are having tough time.

2. Had a chance to arrange Cadbury Choclates in its cabinet. Found below change in a month time. Reduction in weight by 25% (approx), Prize of choclate is same Rs 5.
You Should belive both are Rs 5 choclate and one is dated 06/2014 and another one dated 7/2014.

weight is reduced from 12 gm (2012) to 6 gm (2014). Company doubled their profit in 2 years time. In above picture, Company increased their profit 25% (approx) in a month time. Die hard customers making the corporate Kitty wealthy.

There are many things to list and will update during course of time.