Gold Dust
This story was narrated by Mukul Deoras then Marketing Manager at HLL & sourced from Indranil Chakraborty’s book📷 Stories at Work
IT WAS HOT📷 and dusty, a typical summer’s day in a small town in Uttar Pradesh. As a young sales manager📷🏻📷at Hindustan Unilever, I was on my mandatory market visit.
Today was the wholesale beat. Most of the wholesalers were working on a wafer-thin margin. Their way of working seemed to defy everything I had learnt at IIM (Indian Institute of Management)📷Ahmedabad. I sat on an empty oil tin, sipping a cup of tea 📷made mostly of milk and sugar.
I noticed a fifteen-year-old boy📷🏻 manning the store in his father’s absence. I was in a good mood, so I decided to give him some commercial advice📷.
You shouldn’t be selling our products cheap. By only keeping 0.5 percent margin you will soon go out of business, I said.
The young boy smiled📷. Sir, I don’t think you understand. I make a lot of money from your products. Let me explain.
I sell on cash📷. I have about two 📷🏻weeks of stock, but I also get a📷🏻 weeks credit from your distributor. This means that I essentially have a net investment of one📷🏻 week. My investment rotates 📷fifty-two times in a year and with 0.5 percent margin in each rotation, that is a return on investment (ROI) of 26 percent. What’s wrong with a 26 percent ROI?
He spoke with the kind of panache usually expected from a VC-funded entrepreneur.📷
Learning from the story📷
1. We can learn in any situation & from anyone, provided we are open & conscious of learning.
2. Money is made by rotating money and not by the absolute amount of money earned in each transaction. It’s like a wheel📷 that turns very fast. And every time it turns, it picks up a little bit of gold dust📷, and that way the gold dust keeps accumulating.📷📷📷
3. Idea here is not reducing margins, but finding ways to make the Money Wheel📷⏱ Rotate FASTER. Once you find ways to rotate it faster, our job is to Re-Invest📷📷 into business to Multiply profits📷.
Questions to ask ourselves⁉
📷 What is my investment in business under rotation?
📷 What is the existing frequency of rotation?
📷 What are the ways to increase the frequency of rotation?
If you really want to learn how to first FREE the cashflow from Business & how to Re-Invest to Multiply your Profits; here’s my personal invitation 📷 to our FREE seminar Business On Autopilot
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