DEAR ALL
WHAT I AM GOING TO WRITE HERE IS A TROUTH ABOUT THIS COMPANY AND NEEDLESS TO SAY THAT AFTER READING THIS YOU WILL FEEL THE REALITY BEHIND THIS.
THIS COMPANY IS GOING TO KILL THE GARMENT MARKET AS PEOPLE WILL LEAVE TO PURCHASE BRANDS IF THEY CONSIDER KOUTONS A BRAND.
IT IS A CHEAPEST BRAND AND THE COMPANY MANTRA IS TO LOOT THE MARKET, WHTHER BY IPO OR DISCOUNTS OR HEAVY PAPER ADVERTISEMENTS.
MOUTHSHUT IS FOR CONSUMER, I I M USING THIS TO EDUCATE CONSUMER.
IN JAIPUR, RECENTLY A FAMILY STORE OF KOUTONS WAS OPENED IN VAISHALI NAGAR. FIRST OF ALL WHAT THE COMPANY DID IS CLOSE ITS CURRENT STORE AND THE FRENCHSEE OF IT SUDDENLY FOUND HIMSELF IN TROUBLE AFTER WORKING HARD FOR THIS BRAND FOR SO MANY YEARS. BUT IT NOT MATTER TO COMPANY. AS THE THINK THAT THIS MARKET IS GOOD, THEY CANCELLED THE FRENCHISEE AND OPEN NEW STORE. THEY ASK SUCH A HUGE AMOUNT FROM EXISTING FRENCHISEE THAT HAS HAS TO TELL **NO.
ANYWAY, THIS DOESNT MATTER TO CONSUMER.
REAL STORY START NOW. IN THE MONTH OF JULY THE VAISHALI NAGAR STORE SALES WERE 23.5 LACS.(THE FIGURES ARE CORRECT AND FROM RELIABLE SOURCE.)
NOW. THE RENT OF THE LOCATION COMPANY IS PAYING IS RS. 3.8 LACS. SALARY OF THE 35 STAFF IN THE COMPANY IS 1.70 LACS.(AFTER PROPOSED INCENTIVE TO SALES PERSON).
OTHER EXPENCES ARE RS. 2.25 LACS APPROX. DEPRICIATION, INTERST EXPENCES ARE EXTRA.
NOW COME TO ADVERTISEMENTS. IT CANT WILL BE EASY TO ESTIMATE SO WE GO ON ESTIMATED BASIS THAT AFTER COVERING ALL NEWSPAPERS OF JAIPUR WITH BIG ADVERTISEMENTS, THE ETV RAJASTHAN, THE HOARDINGS AND PAMPLETS AND REGULAR CHANGES OF BRANDING IN STORE. IT COMES TO AT LEAST RS. 50000 PER WEEKEND ON A KOUTONS STORE IN JAIPUR. FOR 4 WEEK IN A MONTH IT COST AROUND 2 LACS.(YOU CAN SEE THAT NOT A SINGLE BRAND, WHETHER DISCOUTED, CHAIN STORE OR ANY OTHER BIG BRAND IS COVERING MEDIA AT SO MUCH HIGH RATE. THIS IS BIGGER EXPENCE ON CUSTOMER POCKET ULTIMATELY.
NOW COME TO THE REAL POINT I WANT TO DISCLOSE YOU.
THE DISCOUNT GIVEN BY COMPANY DURING THIS MONTH IS AVG 65% ON MRP. SO FOR SALE OF 23.5 LACS MRP OF PRODUCTS COMES TO RS. 68 LACS APPX.
IN SALE OF 23.5 LACS, THEY HAVE EXPENCE OF RS.9.75 LACS. NET AMOUNT RS.13.75 LACS. IN THIS THE NEW MAN IN CONTROL(NOT FRENCHISEE BUT INVESTED IN THIS STOREABOUT 50 LACS) GETTING 4% OF SALES. SAMELY 4% VAT ON SALE PAYABLE TO GOVT. TOTAL 8% OF SALES COMES OUT TO RS. 1.9 LACS. AT LEAST 20%(LOWEST POSSIBLE MARGIN) SHOULD BE FOR COMPANY FOR COVERING INTERSEST, DEPRICIATION, OVERHEADS, SOFTWARES, AND ULTIMATELY THE PROFIT WITH THAT THEY CAN EXPAND THEIR BRAND SO FASTLY. SO 20% ON 23.5 IS APPX 4.7 LACS.
WHAT IS THE COST OF MATERIAL IS 23.5-9.75-1.9-4.7= 7.15 LACS. & PLEASE NOTE THAT THIS IS HIGHEST POSSIBLE VALUE.! COZ THE ABOVE SAID EXP ARE MINIMUM. IF SALES RISE IN SEASON, SO THE EXPENCES, AND SO THE DISCOUNTS(THEY INCREASE DISCOUNT IN SEASON) SO VERY LESS EFFECT.
THE MAXIMUM COST WORKOUT IS(7.15/68) 10.51% OF MRP. THIS IS REALITY. THE PRODUCT OF MRP 1000 OF KOUTONS COSTING NOT MORE THEN RS. 105.!
I AM NOT SAYING THAT COMPANY SHOULD NOT EARN. BUT WHY THEY ARE MAKING PEOPLE FOOL! ANY ANSWER MR DPS.(OWNER OF COMPANY)?
IF THE ANSWER IS . "NO THE COST OF PRODUCT IS QUITE HIGH THEN YOU SAY". THEN ITS CLEARLY SHOWS THAT THE FUND OF RS. 145CRORES GENERATED THROUGH IPO IS GOING TO WAISTE HERE. YOU WILL ALL MAKE YOUR MONEY AND WILL OFF FROM THE MARKET MAKING INVESTERS, FRENCHISEE & CUSTOMER ALL FOOL.
MY SALES DATA ARE CORRECT AND FOR A PRIME STORE OF 6000 SQ FEETS.(MAX POSSIBLE SALES). MY EXPENCES DATA. SOME ARE REAL AND OTHER PRESUMPTIONS ON LOWEST POSSIBLE AMOUNT. SO I WANT TO SAY THAT THIS IS ALL CORRECT CALCULATIONS.
THATS WHY DEAR ALL CONSUMERS YOU SEE SO BIG DISCOUNTS. SO BIG ADVERTISEMENTS ALL OVER. AND SO BIG IPO’S. YOU ARE PAYING FOR THEM MY DEAR.
NONE OF THE OTHER ESTEBLISHED BRANDS OR NEW DISCOUNT BRAND CAN ADVERTISE LIKE THEM BECAUSE THEY CANT GO ABOVE A LEVEL OF MAKING FOOL. THEY SAY THAT THEY ARE AGGRESSIVE THEN OTHERS. BUT ITS NOT POSSIBLE. IN OTHER BRANDS ALSO THERE ARE MANY HARD WORKING, INTELLIGENT PEOPLES. IF YOU CAN RISE, THEY ALSO CAN. BUT THE DIFFERENCE ARISE WHEN IT COMES TO TRUSTWOTHYNESS.
I SUGGEST ALL THE CUSTOMERS TO GO AND PURCHASE ANY BRAND. BUT NOT AT LEAST THIS BRAND WHICH IS MAKING FOOL BY ITS NAME ITSELF. USING K INSTEAD OF C IN NAME LIKE A BOGUS EKTA KAPOOR SERIEL.
THE PEOPLE WORKING IN THE COMPANY ARE ILL OF DUPLICACY. JUST HAVE A LOOK HERE THE PRODUT REGISTERED AT MOUTH SHUT. KARROT KOUTONS.! ANOTHER K INSTEAD OF C?. THEY ARE USING IN AD THESE DAYS THE PRAZE "KORPORATE" . YA. YET ANOTHER K INSTEAD OF C.
*NOW THEY ARE GIVING 75% OFF THESE DAYS.? OH KRAZZY MAN. ARE CONSUMERS STUPID OR WHAT?
WAITING FOR SOME COMMENTS FROM CONSUMERS.