Staying in the Competition With Losses

In 1980, in Andhra Pradesh, the middlemen used to buy fish for very less price from the fishermen. There were no facilities to store or processing the fish. So, the fishermen could not wait till they get better price. So, they did not have any other option other than selling for whatever price was offered by the middlemen.

Since constructing an ice plant would take significant time and money, the Managing Director of fisheries, Mohan Kanda (who later became Chief Secretary of Andhra Pradesh) proposed to start a small shop to buy the fish from the fishermen for a reasonable price. They have done all the calculations and started the shop and announced a fair price for the fish. Then the middlemen did not make any calculations. They simply offered Re.1 more than the government price per kg fish. Obviously that was a better offer for the fishermen, and they started selling to the middlemen (but, now with higher price). Nobody sold to the government shop, and the shop was idle and it was incurring the cost of running the shop.

The original problem was, giving better price to the fishermen. That problem was solved.

After few months, finance ministry verified all the accounts and checked that, this shop was not getting any profits. It was not doing any sales and not buying anything from fishermen. So, they ordered to close the shop, since there were no profits.

As a result finance ministry saved few thousands of rupees on that shop. The middlemen reduced the prices, since there was no competition. The fishermen's income reduced. Nobody bothered that, running this shop is the least expensive way to improve the life of the fishermen, and welfare schemes are most expensive.

Courtesy: Mohana Makarandam by Mohan Kanda

No money to start business - A famous personality

The following are three different paragraphs written by a famous personality (May be in different contexts). First and third paragraphs are very popular, but not the second.



We were married in his house in Bangalore with only our two families present. I got my first silk sari. The wedding expenses came to only Rs.800 with him and myself pooling in Rs.400 each.

I went to the US with him after marriage. He encouraged me to see America on my own because I loved travelling. I toured America for three months on backpack and had interesting experiences which will remain fresh in my mind forever. Like the time when the New York police took me into custody because they thought I was an Italian trafficking drugs in Harlem. Or the time when I spent the night at the bottom of the Grand Canyon with an old couple. He panicked because he couldn't get a response from my hotel room even at midnight. He thought I was either killed or kidnapped.

In 1981, He wanted to start a business. He had a vision and ZERO capital. Initially I was very apprehensive about him getting into business. We did not have any business background ... Moreover we were living a comfortable life in Bombay with a regular pay check and I didn't want to rock the boat. But he was passionate about creating good quality software. I decided to support him. Typical of him, he just had a dream and no money. So I gave him Rs 10,000 which I had saved for a rainy day, without his knowledge and told him, This is all I have. Take it. I give you three years sabbatical leave. I will take care of the financial needs of our house. You go and chase your dreams without any worry. But you have only three years!

Time Complexity - Linear, Polynomial and Exponential

Whenever I discuss about the complexity of programs, most of the times, I drain all my energy in few minutes (because of talking in very loud voice). The following example is very famous.

Is it linear, polynomial or exponential?

calculate(int c, int n)
{
   BigInteger x = 1;
   for(int i=0; i<n; i++) {
       x = x*c;
   }
   return x;
}

If I am giving input, and you are calculating output, then

Linear - You spend roughly equal amount of time as me
Polynomial - You spend significantly more amount of time than me, but, you will do it.
Exponential - I spend couple of mins, and your whole life is not enough to calculate the output.

If anyone says the above program is linear or polynomial, I am ready to spend 10 seconds of my time in giving the input. Are you ready to calculate the output?

Multi Level Marketing

Few days back, I have travelled by Ola Cabs for free.

If an existing customer refers another one, then both gets Rs.300 which can be used when they travel by Ola cabs. Now, they have reduced it to Rs.100 from Rs.300.

If you have not registered with Ola cabs, I am more than happy to refer you. You would get Rs.100 discount, when you travel with Ola cabs. My referral code is H9JH6Q.

--- Ad Ends ---

Giving incentives to the consumers to market, is one of the most efficient ways of marketing. As a consumer, I prefer that kind of marketing than any other marketing, since, instead of spending the money for TV Channels, actors and sports people, they would be spending it on me.

Let's suppose, if Ola cabs introduces an incentive system where for the referrals that I have done, the person who referred me also gets some benefit, then our Indian government may file cases against Ola cabs, and there would be many "so called" social workers, who would pursue cases against Ola cabs, saying, they are cheating people and charging exorbitant prices.

If anyone thinks that, they are charging more money, they do not need to buy services from them. Whoever is buying the services, knows basic mathematics, and can find out which one is cheaper for the quality that they are getting. Most of the people do not need somebody else to come and teach basic mathematics.

In free market economics, there is practically no meaning to fighting against a business in their marketing. If anybody is fighting against any business for their marketing in free market economics, it only means, they have some self motives to destroy the business to reduce the competition or has individual vengeance on the owner of the business. Unfortunately in India, people use the name, "Social work" to kill the competition or to take revenge in these cases.

I am talking about Amway. I got frustrated with the people who file cases against Amway, when they never lost anything or lost because of their incapability in doing the business. I am also frustrated with the people who support these "so called" social workers. If someone does not know how to run the business and start a business, then they are bound to lose the money. And, if they file cases against the producer of the goods for their loss, it is completely ridiculous.

New State

Today, a state expelled one part of it, and started celebrating that they got a new state.

[They have given their name to the expelled area, and they got a new name for themselves. That's why, legally, they are claiming that their state is the new state.]

I wish to see all the accounts to get settled as soon as possible in the best of interests of everyone including mute spectators.