“Buy Water, Get a Car” Business Model: How Does the Boss Earn 20 Million?

2bebetter
3 min readNov 12, 2023

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.

Photo by Marvin Meyer on Unsplash

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 $675. Altering the car’s interior, another profitable avenue, earned an extra $225.

Photo by Mediamodifier on Unsplash

Calculating the Gains

By encompassing these supplementary avenues, the boss could accumulate profits surpassing the water’s total cost, effectively yielding an additional $300.

Extended Profits via Distribution

Expanding the scheme, the boss distributed $15,000 worth of mineral water to dealers over 36 months. Dealers, upon receiving $11,900 worth of water, additionally obtained $4,760 at each transaction. This led to a surplus earning of $5,280 per dealer.

The Numbers Behind the Strategy

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