Distributor Profitability – How much margin to give to a distributor?

Assume you're a brand or a manufacturer trying to select a distributor for your business and the terms you'll be providing are a gross-margin of 5%, zero credit period (the credit period for the distributor is zero days from the manufacturer) and the average costs for the distributor is 2%. The distributor has to extend …

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Consciousness & Dreamless Sleep according to Vedanta and Science

According to Vedanta, the fundamental nature of this universe is consciousness and everything else is a manifestation of it. Correspondingly, your true self is consciousness (atman) and the manifestation is ego-self (ahankara). Awareness (I know I exist) comes to us as a function of having this consciousness in us. Awareness is what develops when consciousness …

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PPC Search Marketing – Keyword Match Types

Search Engine Marketing is a powerful platform to push your products in the search-engine listings. The grand-daddies in the "search" business are Google and Amazon with billions in revenue. With millions of products listed and huge amount of search inventory with Google and Amazon, all advertisers and sellers compete to get their products on top …

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Cost of Capital, Debt:Equity Balancing, and Max Allowed Debt

Let's say you're in need of $1000 for some requirement, and you need to take a loan for the same. You approach various banks and you boil down to two banks: Bank A is ready to give you a maximum loan of $300 at 3% interest and Bank B is ready to give you a …

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Online Furniture Rental Market Size in India (2600 Crores – Top 15 cities)

Online Furniture & Appliance rentals have gained a lot of popularity in India especially in the big metros. The market is dominated with top players such as Furlenco, Rentomojo, Rentickle, Fabrento, CityFurnish, and others. But, what is the exact total addressable market size of this industry in the medium-term and long-term? Let's cut to the …

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The Psychology of Human Relationships, according to Transactional Analysis

Human-beings have this eternal problem of what is to be done with their waking hours! Essentially at an egoistic level, humans are always stimulus-hungry, recognition-hungry and structure-hungry. All waking hours are used in managing these three requirements in this world. Stimulus-Hunger: this is to avoid sensory starvation Recognition-Hunger: this is to avoid emotional starvation Structure-Hunger: …

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Televisions vs. Furniture – Televisions is winning the battle for the Wallet Share in the Indian Household!

With close to 200 million regular households, India is always expected to be one of the biggest markets for most consumer products, and so it is. India is the the second largest market in the world for Furniture and is the third largest market in the world for Televisions. The market size of Furniture (excluding …

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The Core of Hinduism – I am neither the Body nor the Mind – The Ultimate Truth or A Self-hypnosis?

You can disagree with it, but you cannot not appreciate the beauty of the core of the Hindu philosophy. Hindu philosophy at its core essentially says that as a 'Being', we are not the 'body' and we are not even the 'mind' too. We are that which uses both the body and the mind to …

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High margin, High volume, High velocity – Which do you prefer?

Let's say we have three products: high margin and low volume, low margin and high volume, and low margin and fast selling. Which product do you want to sell as an entrepreneur? Generally, the most common answer is that we should sell the highest margin product. But, from an Return on Investment (ROI) or Return …

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Indirect Costs, Marginal Cost, Marginal Revenue, and Quantity Discounts – Supplier & Buyer Views

In retail, one of the most common negotiations between a buyer and a seller would be something like: If you want the price to be lower by x%, you need to pick up y% more stock right now. Where is this coming from? What does this even mean at a deeper level? We have seen …

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Direct Costs, Indirect Costs (Overheads and G&A)

Knowing the overhead costs is essential to any manufacturer in calculating the total cost of manufacturing of a product and hence to set a profitable selling price. The buyer should always know what is the overhead cost and indirect cost included in the product as a percentage of the cost of the product that the …

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Dan Bilzerian – Pleasure is not happiness!

One of the things that I really love about life is conversations. Conversations make me happy in life, conversations about philosophy, technology, God, business, nirvana, music, and anything under the sun... with friends, neighbors. I have a new bunch of neighbors (during COVID) who come over and have lunch and dinner discussions over a lot …

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Why should you try to work ‘fast’ on periodic tasks?

Most people to end up pondering about this question: work fast and not-so-deep or work slow and deep? The right answer is, it depends. But, on most occasions, working fast helps. If the work is periodic and you have a chance to rectify mistakes, which is the case for most of the work that we …

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Deficit Financing and Inflation Explained Simply

Normally, any entity spends basis its earnings or how much money is in their bank. But, governments are an exception to this behavior. If government has to spend, they spend. They may not exactly care if they have the money to spend or not. If they don’t have the money, governments will simply print some …

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CPC Campaigns – Relation between Budget and CTRs

We are going to talk about the relation between Campaign Budget and CTR in CPC digital advertising, even though budget shouldn’t affect CTRs in an ideal world. The above data is for a CPC campaign. The details of the campaign metrics are mentioned in the table above. If you observe in the above data, the …

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Three Key Spiritual Learnings from Early Upanishads

The Upanishads is one part of the larger Hindu spiritual learnings from the 500BC. In the early period of this COVID lockdown, I took time and read about one-quarter of the text. I didn’t know much about the text before I started reading except for its popularity. When I started, I was expecting that the …

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The 12 most overlooked truths of money and life ‘no one teaches you in school,’ says financial psychology expert

I am very impressed by this article and I want to share it with everyone. This was originally written by Morgan Housel for CNBC and you can find the original article here. Here are a few things that generally aren't taught in school but I've noticed are vital in business and investing: The ability to …

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Are we machines designed to search to feel good?

Let's look at this riddle: When a tree falls in the forest and there is no one around to hear the fall, does the tree fall make a sound or not? The answer is "No". The tree doesn't make a sound because there is no animal 'ear' around to hear that. Yes, the tree fall …

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Pride and Self-loath, most observable traits in human conversations

When you think you are better at something than others or when you think what you have (a possession) is better than what others have, then you will get an internal feeling to show others about what you have or what you are better at. So, you talk about it, and you want others to …

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Prime Costs, Conversion Costs, BOM and GP in Manufacturing

When you talk to manufacturers, they frequently use a term called ‘conversion costs’ and a few of them also use the term ‘Prime Costs’ (especially used by Chinese vendors). A typical manufacturer would look at charging you as below: So, you could guess: Conversion Cost is the total cost that is borne by the manufacturer …

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