Utilization Of Resources With Minimum Waste – Inspirational Story !


A company is buying a product with cost Rs. 5000 and sell it at Rs. 4500 and makes profit of Rs. 1000. How does it do so ? (Read details)

There is a Orange juice shop (say shop 1) in a city which used to do very good as it does not have competition. Later, a new shop (shop 2) was opened beside this shop which used to sell it for MRP of the product.

Realizing that shop 1 is losing business, the owner started selling the goods at MRP just like shop 2. Now, the shop 2 started selling the goods for less than MRP and making a good business and a marginal profit.

Eventually shop 1 was closed down and after closing he approached the shop 2 owner and asked him how was he able to make profit even after selling it for less than MRP.

The shop 2 owner replied : ” We get our orange juice bottles in cardboard boxes. I started selling the cardboard boxes to the near by packers and movers shop and make money from it.”

This is a classic example of right utilization of resource with minimum waste.

4 Responses to Utilization Of Resources With Minimum Waste – Inspirational Story !

  1. Shakil September 7, 2015 at 11:01 AM #

    so cardboard box or not (which is a good move) Id hv kept my prices in such a way that both of us worked.

  2. Shakil September 7, 2015 at 11:00 AM #

    My religion says that competition is good but driving out a competitor is bad.

  3. Hazem al-Ayoubie September 6, 2015 at 8:51 PM #

    This what Jews used to do in various parts of the world. Curse their greediness!

  4. sharif123 September 6, 2015 at 1:44 PM #

    Typical example of backward integration