What type of sales cycle is most rewarding to you? A long
cycle for a big ticket item or a series of smaller, more
frequent sales?
Answer / d.ravindran
Smaller cycle with frequent sales is better.
Even if margin is low but the numer of rotation of business
is more , then the net profit will be more .
For example , selling 10 product (rs 100 each)at 5 % profit
which gives more sales ( 4 rotation in month 40 products
(net profit rs50* 4 times = RS 200 but the investment is
only rs1000).
Selling the same 10 products (rs 100 each) at 15% ,1 time
rotation profit is RS 150( ie 25 % less net profit even
profit percentage is thrice )
| Is This Answer Correct ? | 8 Yes | 1 No |
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Someone wants to send a small quantity, say about 500 Kgs., of green coffee beans from Koraput Orissa to Bangalore for Roasting and Packaging of the same there. There will be a loss in weight of about 20% during the processing the green coffee beans into coffee powder, which will then be fit for human consumption. Now, after processing the green coffee beans at Bangalore, the person wants to sell simultaneously a part of the Roasted Coffee Powder to four persons; one of them is in Chandigarh (a registered Dealer in Punjab) and the other is in Mumbai (possibly he is a an individual and not a registered dealer), third one is a registered dealer in Bangalore and the last one is an individual consumer just like you and me, and is not a registered dealer and stays in Mysore. The person wishes to bring the rest of the packed Roasted Coffee Powder back to Koraput, Odisha. The planter is a registered dealer under VAT in Odisha and has produced (manufactured) the coffee beans in his own gardens, and has applied for a CST Number but is yet to obtain the Number. We want to know: As to whether he can send the coffee beans to Bangalore for roasting without obtaining a CST Number beforehand. Or as to whether it is mandatory for him to get the CST registration first, before sending the Coffee beans to outside the state; As to how the person can generate the Way Bills from here and to send these to the transport carriers, for his sales to Chandigarh, Mumbai, Bangalore and Mysore. Tell me as to how he can do the necessary paper works and as to how he can pay the tax collected thus, As to how he can bring the rest of the roasted coffee powder back to Koraput that he can sell afterwards in the state and outside; He shall be sending samples of the Roasted coffee to Philippines and elsewhere, from Bangalore itself. May be in a subsequent times he might export, for which he has to send the roasted coffee powder to Mumbai; If the person wants to send the parchment coffee to Kushal Nagar in Karnataka to do the Curing Pre-Roasting) there, as to how he can send the processed coffee to the Roster at Bangalore. During Curing there is a loss of weight of about 20% too. Until the roasting is done, there will be no transfer of ownership, at any point of time, in between.
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