Man in the Middle
In residential areas in the PI, there are lots of smaller Convi's (Convenience Stores) called "Sari-sari stores". These SS stores sell their products at a considerably higher mark-up than the same product you buy at a Convi. Let's take a bottle of soda for example. What would cost 10 bucks at the SS Store would only cost 9 at the Convi, and 8 at your local supermarket.Think that's small? Multiply it by 24 (number of bottles in a case) then by 10 (the approximated maximum stackable height).
Wait, i'm not quite finished. Multiply it by X where "X" is 30. This is approximately the smallest number of stacks you can hold in a truck. Doing the math, it's 7,200 bucks at 1 peso mark-up. Now.. if you are the person in-charge of supplying SS's with drinks, you'll probably make at least 3 bucks mark-up and still be able to sell. (that was years ago, im not sure how much it is now), but if you'll see it, you'll be making around 20k per delivery. That's a lot.
That's just per delivery. Do you want to want to know how many deliveries do you actually make in a month? Yes that's right.. if your areas covered are heavy soda drinkers, you'll be raking at least 60k in gross profit. And that's PER truck. Imaging having a fleet of them...
Now can you see the big money??
All this is possible because of this business -- that is: one of being the MIDDLE MAN.
He is the guy who manages the supply and delivery from the soda plant to the sari sari store.
Depending on your connections, you can be direct to your SS store customer or have another contact to supply the trucking/shipping schedules. Looks like a really good business model right?
I should know, I know people in this business, and it's the only thing they've been doing for years, and they've gone quite the distance. Although this is really hard work.. miss out on a shipment or a supply and some other middle man will take your SS store customer away from you. Quite the cut-throat competition is it not? But hey this is how the business world works. If you won't make your customer happy, some other supplier will.. but the rewards of this business are just about worth the pains getting this business started. Truly this is one nature of business where having the skills won't spell the difference between success and failure. It's "who you know".
Imagine making that -- around 20k per delivery per truck. Where can you find 20k on the street?
Good business model right? Well it is..
posted by Urban Warrior @ 1:59 PM
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