We also went back to visit with Axel (not Rose, but for all I know the Guns 'n Roses signer could be floating around down here in some Nicaraguan bar, I'll keep my eyes open...). Axel is the guy I talked about yesterday. We took the list of his inventory we created and married that up with his sales records for the month of April this year. We calculated that he made 478 Cordobas last month which is equal to about $24. Not much to live on. We discovered in our analysis that his tire business, which he thinks is the most profitable, is actually running in the red. He makes 2 trips a month to Managua to buy these tires and the trips alone cost him about 900 Cordoba. He only made about 1200 Cordoba profit from his tire sales in April. Not hard to see that 1800 is more than 1200. He's got a lot of money tied up in tire inventory that isn't selling either. The ironic thing is that we also found out that batteries are a different large dollar item that are also high margin items. He doesn't have any money currently to buy any though. Ding Ding Ding, if we were to scrap the tire business and start the battery business he could realisticly improve his income by 4 to 5 times! Without changing anything else, we could get him over 2000 Cordobas a month. Hopefully our ideas prove worthwhile and implementable. Not sure if implementable is a word or not, but I make up a new Spanish word every 15 minutes or so, so why not in English too.
Thursday, May 7, 2009
Day 10
We also went back to visit with Axel (not Rose, but for all I know the Guns 'n Roses signer could be floating around down here in some Nicaraguan bar, I'll keep my eyes open...). Axel is the guy I talked about yesterday. We took the list of his inventory we created and married that up with his sales records for the month of April this year. We calculated that he made 478 Cordobas last month which is equal to about $24. Not much to live on. We discovered in our analysis that his tire business, which he thinks is the most profitable, is actually running in the red. He makes 2 trips a month to Managua to buy these tires and the trips alone cost him about 900 Cordoba. He only made about 1200 Cordoba profit from his tire sales in April. Not hard to see that 1800 is more than 1200. He's got a lot of money tied up in tire inventory that isn't selling either. The ironic thing is that we also found out that batteries are a different large dollar item that are also high margin items. He doesn't have any money currently to buy any though. Ding Ding Ding, if we were to scrap the tire business and start the battery business he could realisticly improve his income by 4 to 5 times! Without changing anything else, we could get him over 2000 Cordobas a month. Hopefully our ideas prove worthwhile and implementable. Not sure if implementable is a word or not, but I make up a new Spanish word every 15 minutes or so, so why not in English too.
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Haha, you comment about making up Spanish words cracked me up! Implementable is a word, by the way, good work!
ReplyDeleteIt sounds like you are finding good business solutions for people, how cool! It makes me wonder if we could figure out a way to get our old computers to people like that who need them...