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  • Harshad Joshi 4:25 pm on December 8, 2016 Permalink | Reply
    Tags: , Economy, , , , , , tax   

    Demonetisation – 1 month later 

    ​1 month of demonetisation – I think I experienced all possible life emotions I knew so far in this one month.

     
  • Harshad Joshi 3:42 pm on November 16, 2016 Permalink | Reply
    Tags: 500, cash, currency, , , Economy, Finance, government, , , ,   

    ​Demonetisation – the great leveler.  

    Few days ago you were so happy, confident and relaxed with those mighty high currency notes that could buy you anything you needed. You never worried about things like coins, small amount cash etc. 

    One day suddenly everything changed. You desperately tried to search every place for high denomination note you had. Cash turned into a precious commodity. You were in a situation you never had been before. You never imagined it to be real. Easier said then done..that is part of life. We all yearn for everything till it happens and takes us by surprise.. 

    Now you are in a line to convert cash or deposit money…looking around you realize you are not alone. There are so many like you. You are no longer a part an exclusive comfort zone life. You know get to see people from all strata of society crowding in there for cash. 
    That sense of peace when you realize…you are not alone. 
    Everything starts to make reason after that – right from where it begins and where it is going to end. You are a part of that change. It is a positive change. 
    All it took one narendra modi and just 15 minutes announcement and all of a sudden – we are all levelized by demonetisation…

    Everything is tough in the beginning. This is no exception. Live through it. Experience the past. Enjoy the present. 
    The future is bright.

     
  • Harshad Joshi 6:46 am on September 12, 2009 Permalink | Reply
    Tags: Economy, The milkman story   

    Some freak economics a milkman taught me 

    Economics is a very facinating mix of theorotical science and practical art of managing money. Apart from spelling the word economics right, theres very little contribution to world economics from my side..

    until now..

    Few days ago, one interesting bill was attached to our common notepad – It was the milkman bill..Out of utter curiosity, I looked at it and was staggered..!! It read that I had to pay almost 1000/- to the milk man, and the service charges were extra. Service charges in this case was the salary given to the milk delivering boy and some supply chain management costs..

    I just calculated – The milkman gets approx 1000 rupees from my house. He delivers milk to adjoining 50 homes. On an average, a family needs 1 litre of milk everyday, and in Pune, the well known brand costs around 32 rupees a litre. So, in all, it works about 30×32 = Rs 960/- per home. Multiply it with 50 families, and the monthly income of the milkman is – 960×50 = 48000..!! The milkman automatically gets a decent discount from the milk supplier since he purchases them in bulk. The other cost is that of the milkboy who delivers those bags early in the morning..I am not sure how much salary he will fetch, lets assume he gets 2500/- pm. Most of the time that boy needs to invest 2 hours per morning and then continue study or any other activity. That leaves Mr Milkman the amount of almost  47000/- pm. Add to it there is no known and official service tax on doing this.Wow..aint that awesome? Add to it that our milkman does work in a bank apart from delivering milk, so this salary is extra to him…

    Incredible.!!

    I read in papers that many freshers in engineering arent getting jobs and even if they land on one, they have to work as a trainee for well over 1.5 years till they start getting the standard salary. Add to it the cutting edge training costs these engineers invest in.

    From the facts based above, I can safely say that I want to be a Milkman…instead of slogging in front of the computer writing cryptic and buggy software, its better I start something like this..!! Till few years ago, milk delivery man was just another poor mans job..today its turned to be a number one earning service with comparative less stress etc. Of course, even this field might have its own unknown risks, losses, and all that stuff, but did anyone ever look at the strange economy behind the scene??

    I dont know..

    PS  – All figures are indicative, your milage may vary. I am an ignorant and untrained economist, so please forgive me if I make mistakes.. 😉

     
    • Prasad Kulkarni 9:25 am on September 12, 2009 Permalink | Reply

      Harshad, no doubt that Milkmen are milking money like anything. But is that the only thing attached to it?

      A milkman needs to buy a cow or buffalo. A price which will break even after 2-3 months. Adding to that he needs to develop the customer base which needs lot of marketing cost (though not much considering the company’s marketing cost).

      Also, he needs to buy food for those cows and buffaloes. That will also get subtracted from his earnings. He needs to buy shampoos and soaps for washing those cattle. If the cattle get sick he needs to take them to veterinary doctor adding to the total expenditure and subtracting from the earnings.

      This is not it, he needs to build a shed for them, keep the surrounding clean, milk the cattle (which is in fact the tough job, to milk the cattle).

      If you calculate all these things you will get very restricted surplus. This all accounts for almost Rs. 10,000 monthly (some pluses or some minuses) so what he gets ultimately in hand is around Rs. 38,000.

      But even then the earnings or profit he makes is hefty. But the hard work it needs to carry all these operations is very much. And if you really want to get into this business, you will not be able to perform all these tasks and for that you will have to hire someone who will share your profit.

      And the main thing is this job or business is unstable and volatile. Because if you under-perform (that means if you don’t produce good quality of milk) the house where you are serving will ask you to stop serving them.

      Now considering all these things, you tell me how good this job is.

    • Harshad Joshi 11:00 am on September 12, 2009 Permalink | Reply

      @Prasad

      Well, you are partially right in this case.

      The milkman I am talking about dosent maintain cows/buffaloes or goats.

      Instead he maintains a heavy duty refridgerator and purchases milk packets in bulk from Chitale, who in turn maintain the milk supply chain and milk producing machinary.

      Obviously I dont want to be Chitale, as its a very heavy invested business..

      I want to be the local milk man who maintains an important position in milk supply chain, and he is the one who comes in direct contact with end customers.

      The profits or expenditures I mentioned are that of the local milkman and not of Chitale or Katraj or Amul..

    • Prasad Kulkarni 2:40 pm on September 12, 2009 Permalink | Reply

      OK, but still the profits you have mentioned have some sharing components. The bill of electricity he will get by using Fridge. Then there are other factors like, if he owns a place then fine, but if doesn’t own then the rent is added thing.

      But he still manages to milk hefty profits.

    • Harshad Joshi 2:48 pm on September 12, 2009 Permalink | Reply

      @Prasad

      Bang on..thats what I am trying ot convey that the milkaman is earning more taxfree profits we can ever imagine..

      Add to the fact that no one ever asks the milkman for discount in milk bottle, say a rupee less, say Rs 31. We should all ask for discount, coz as it is we are going to purchase a guranteed 30 milkbottles from him, arent we supposed to get something in return??

      Shit, this is very dirty politics played all around..! We are wasting money..!

      Save money.

    • subbu 7:47 pm on December 29, 2009 Permalink | Reply

      The MilkMan gets his milk from another supplier. So doesn’t it mean he spends among the 48000 you had mentioned to procure that milk?

      So its not as much profit as it may seem. Even if he gets the milk at 3/4 of its price he is left with 12000 for operations cost. Whatever is leftover of that is his profit.

    • Ed Hartz 7:22 am on December 30, 2009 Permalink | Reply

      I am new to this industry. I only started weeks ago and I can tell you that this is a rewarding business for two reasons; it can be and is for me connected to the sustainable agriculture movement today, and second reason; it is lucrative if you want to sell and market and are good at it. I happen to live in one of the most lucrative counties in the USA. And I project that this business first year with only myself can earn $220,000. That is within a 15 mile radius and with 1-2 towns. I plan to move onto the other towns in my county then into Manhattan, New York. we will train other people to be their own distributors. The Milkman Company will take care of marketing, some of the sales jobs, buying power, product knowledge, and other office administrations.

      Watch for us in the industry. and watch for our Milkman delivery trucks. These same opportunities can exist for entrepreneurs in other regions of the State, the USA, and globally.

      Thank you.

      Ed Hartz
      President
      The Milkman Company

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