Please spare your 10 cents to read the following hypothetical example before we go into the depth of the concept I’m trying to explain.
Imagine a guy named Jagmohan Das. He is a fruit vendor, say a grapes exporter from Nasik or oranges exporter from Nagpur. He has implemented various advanced techniques to increase his produce. He has successfully managed to do that. His normal business model is grow fruits, segregate them as export quality and domestic, tie up with exporters and domestic fruit vendors, make provisions for logistics and at the end of day earn money by selling his oranges or grapes.
However he has some problems with the business and is not able to generate expected returns. They can be (1) His export quality fruits are being rejected by customers as they exceed the minimum level of use of chemicals. (2) He has an option to bring them to domestic market. But due to the perishable nature of produce, he ends up wasting half of his oranges/grapes. (3) He can sell them locally. However he knows only his exporter and do not have the knowledge of the place. So he cant get a good price.
As a solution, he walks in to a ‘Max Consulting’ kiosk locally (in his own city Nagpur or Nasik) and becomes a member. Here he is counseled by the best people in fruits export business and advised on how to tackle various problems related to fertilizers, logistics, export procedures etc. Max guys help him to reduce his export rejection, and also help him sell his export rejected fruits locally. Jagmohan travels from Nasik/Nagpur to Cochin in order to find a market for his oranges/grapes there. Again, he knows no one there and has a language problem. So he walks into the local ‘Max Consulting’ kiosk. Since he is a member, he is counseled, introduced to the right people and helped to set up his business locally. Jagmohan is happy as all this is done at a minimum annual subscription fee. Plus if chooses to use Max Consulting sales channel, he can share a small piece of his profits.
I call it consultancy retail. Making sales, supply chain and logistics consulting solutions available to every town in the country in order to help SME’s do their business better. We enrol small and medium businesses as members and help them to grow their business better. We earn through the membership fees as well as through the percentage profit if they meet their targets. At the same time, we have logistics guys and other agents tied up with us to help our members. We charge them a minimum fees and again as per their deal size.
Is this a good idea?