cbe business+at+traffic+signal

8/9/2019 CBE Business+at+Traffic+Signal

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Business at Traffic Signals

Nikhil Pariath (72)

Venky P (80)

Rashmi Gupta (81 )


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Introduction

Traffic signal is our target market

shabbily dressed salesmen selling items

such as books, flowers, dusters and toys

Area of sales200 to 500 meter of pitch

and asphalt packed with vehicles

Target groupany interested or inquisitive

soul packed inside these vehicles


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W ho are they??

Typical seller likely to be a migrant rather than a local

Stay in shanties near their area of sales or at traffic signals

itself

Some have been selling for 7-8 years while some for 1-2

months and some others just do it as fillers

Most have some family person doing it alreadyMost of them are below the age of 18


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W hat do they sell?

Business at traffic signal doesnt comprise only of begging and

selling magazines

Amazing range of products and product lines

Things sold at junctions are toys, accessories, refreshments,

books, dusters, and seasonal products

Sale of pirated CDs and books as latest as the twilight seriesSale of seasonal products such as flags during national holidays

and football during FIFA world cup


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H ow the business works

Sellers who sell products which are supplied by athird party

eg. Magazines and newspapers

Sellers who buy the products from whole salemarkets and sells them at profit

eg. car steering covers and mobile chargers


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Selling for fixed wage and commission

AgentManufactu

rer Seller

SA

SA

SA

SA

175 Rs.125 Rs.100 Rs.

0-30% commission on each sale

Fixed wage for sellers and commissionThe more he sells the more he earns


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Selling for profit

Seller W holesaler Manufacturer

.

Sellsatprofit

Customer Buy goodsat fixedprice

If the customer is bargaining hard, seller has to sell at lesser or at cost priceIf the seller has good negotiation skills , he will get good marginThe more he negotiate the more he earns


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E xamples

Vinod Kumar Gupta used to sell for 12 years magazines etc. but

now procures and manufactures at his own facility

Pappu sells balloons and toys but his margin depends on his

ability to bargain with customer

Pintu Gupta, the seller of car accessories, business depends

upon the amount he slogs


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Characteristics

Territories strictly defined and variety of products

sold at one signal

On average works for 7-8 hours and not necessarily

at one signal

Gets advise about the latest trends from the

wholesalers

They make sure they sell different products at

different point of time and seasons


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Points of concern

Newspapers, magazines etc. have fixed prices but what about

products with no fixed MRP

People can be cheated on products such as glasses, steering

covers etc. or price discrimination takes place.

Also the income is non taxable

Other frauds include showing fake sellers data etc.

Most of the sellers below the age of 18

Very low trust on the sellers and the quality of products

E g. Toys, lighters etc.


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Our Take

Adopt the following measures to improve the situation

Government needs to recognize this channel of distribution

Strict regulations should be made so that child labour doesnttake place

Products being sold should have government seal

Special focus on domestic products

Admire the rose but be cautious of the thorn


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Conclusion

So, he may be without a formal dress and nicely

polished shoes and devoid of a neat haircut but

the next time you meet him at the crossroad, be

rest assured he means business!


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Greeeeeen .Its time to go

Thank you

cbe business+at+traffic+signal

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