“Buy Water, Get a Car” Business Model: How Does the Boss Earn 20 Million?
In an unusual marketing move, a water plant launched a striking promotion: Purchase $15,000 worth of water and receive a fully paid $15,000 car for free. The seemingly loss-incurring proposition raised eyebrows, yet the enigmatic boss managed to amass over $3 million in 36 months. How? Let’s dive into the intricacies.
The Art of Strategic Purchases
The boss, savvy in business acumen, began by procuring 200 cars in bulk directly from the manufacturer. This bulk purchase enabled a significant discount, reducing the cost of a $15,000 car to $10,000. Similarly, the cost of $15,000 water amounted to $6,000.
Finding Profit Amidst the Offer
To balance the cost disparity, additional profit points were identified. The cars given away came in specified colors; any deviation warranted a $450 charge. Moreover, for an automatic transmission upgrade, an additional $1,200 was added. Each alteration contributed to the boss’s commission.
Leveraging Added Services
Beyond the basic offer, the boss secured further income through auxiliary services. A mandatory insurance purchase of $450 for the gifted cars yielded a 30% rebate, amounting to an additional…
