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May 24, 2007
The difference between Main Business & Core Business – part 2!
Before I get into the main business/core business funda about astrology, let me give you another example to take my point home. Here is an example how VGP Golden Beach (amusement park in Chennai) makes most of its revenue today. Most people in Tamil Nadu know that VG Paneerdas was a man from rags to riches - he was a self made man indeed. And he was the one main person to have made installment schemes a big success in India. But then the main business he was associated with was smuggling of Gold in the 60s and the 70s!
Example 2
VGP Golden beach is one of the star attractions of Chennai, where people from all across the country come to celebrate their vacations and holidays. The entrance fee is just Rs 125, which is very less when compared to other amusement parks in Chennai.
The rush is impressive in the months of March, April & May, and rest of the months the crowd is just ok. But where does the main money come to maintain such a big place in off-season time. Here is what happens –
The stalls – like ice cream shop, juice stall, games - inside the park are maintained not by VGP but by outsiders. If you want to open a stall you need to pay a non-refundable amount, which goes at least to 30 k to 50 k depending upon the place you choose. Later a monthly rent of 10 k to 20 k is collected from them during off seasons. And this monthly rent is increased during the season time.
Looking at the crowd which comes in most businessmen think that they can make a killing during the time of season, but then as the monthly rent is increased proportionately - he sees no chance of making money and leaves the premises in a year or so. The same place is again given to another businessman who comes in with lots of hopes and pays a non-refundable amount.
The business through selling ticket is just a bonus!
It is simple – the money made by selling newspapers and magazines are just bonuses, the main revenue comes from advertisements. This way every business has a main business / core business funda and astrology has it too.
Most astrologers keep their consultation fees very minimal, because that is not the core business that brings in revenue. The core business for most astrologers is giving remedial measures. They would charge Rs 100 for a consultation but then charge Rs 2000 for selling you a Gem, or few 1000s to make you perform a special puja! The case is similar with doctors. The core business for a doctor is not consultation – but then selling medicines, performing operations, and the commissions they make through scans, blood tests and x rays!
So what would happen to an astrologer who doesn’t believe in remedial measures, who doesn’t sell gem or who doesn’t suggest costly pujas? He will keep his consultation fees a bit on the higher side, and go in for a second hand car first.
Posted by Kenni at May 24, 2007 07:41 AM
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