Comments for Subramoney

Comment on All businesses need not be profitable by Geo

Geo — Thu, 09 Feb 2012 11:16:11 +0000

We run a petrol bunk, invested amount 3 years back at 50 lakhs. Earning a mininmum of 2 lacs a month ever since save a few months.
Decent returns I guess. After taking away money for personal expenses, I have covered the cost of setting up the whole thing within 2 years.

Comment on All businesses need not be profitable by subra

subra — Thu, 09 Feb 2012 11:11:40 +0000

sorry I should have said legitimate business. Secondly 1.25L pm on 60L. Pravin jumping to calculate returns is amazing.

Gross profit or net profit
Salary for the owner provided or no?
taxation considered or no?

apart from Rs. 60L – what about cost of land

A zillion questions have to be answered. No a petrol pump is not a LEGITIMATELY DONE PROFITABLE BUSINESS. Period. Any doubt, read it again.

Comment on Joy of budgeting? or Pain of budgeting? by Venkatesh. S

Venkatesh. S — Thu, 09 Feb 2012 09:14:09 +0000

Sir Ji, do you have any readership figures for your blog? I really want to know how many are reading ‘SubraMoney’. Great work Sir. Keep up the good work.

Comment on All businesses need not be profitable by Pramod

Pramod — Thu, 09 Feb 2012 09:06:41 +0000

@Pravin, that’s possible. Petrol selling price is Rs. 70 on average. Now a little tweaking in the vending machine and you can dispense 970 ml per litre. Although that’s unethical but many pump owners do that. Customer’s dont even notice such things and It can’t be proved even in measurement test as 30 ml in a litre can be attributed to errors.
Now do the maths. At a sale of 1000 Lites per day, this is 63000 per month, out of thin air. With more innovations like mixing only 2% of cheaper liquids can fetch you another 50K.
I know that’s illegal but this is how shrewd pump owners operate. I have heard this tactics from the horse’s mouth. Same is the norm when you buy steel bars or cement for your house. You are always sold 3%-5% less in wt. Hard to notice for customer but big profits for seller.
BTW. Ever measured the soap bar. The wt. mentioned is 120gm (when fiiled) this means that the HUL filled 120gm of soap in pack in the factory, when soap is wet but overtime water dries and it is only 100 to 110 gm when bought. So in pure daylight big companies are robbing us for 5% and the small traders are learning fast.

Comment on All businesses need not be profitable by pravin

pravin — Thu, 09 Feb 2012 07:32:49 +0000

@sachin.. 25% returns? thats outstanding.he should put in more money if the business can scale up

Comment on All businesses need not be profitable by pravin

pravin — Thu, 09 Feb 2012 07:31:34 +0000

what about businesses which have 6-7% margins? big hardware companies,many utility companies? why do they even exist.not to mention airlines.

Comment on All businesses need not be profitable by suhas

suhas — Thu, 09 Feb 2012 06:50:05 +0000

@ krish
I refuse to belive you are failed entrprenuer…
Your are SUCESS IN PROGRESS entreprenuer
Edison found 999 ways of not making a bulb before he found 1000th working way

Comment on All businesses need not be profitable by Sachin

Sachin — Thu, 09 Feb 2012 06:25:24 +0000

My friend bought a petrol pump station for his son about 5 years back, for Rs. 60 lakh (No loan). His son earns about 1.25 lakh per month (last year figures – don’t know about today).
I do not understand maths of the returns, but I think this is a decent income.

Comment on All businesses need not be profitable by shinu

shinu — Thu, 09 Feb 2012 05:45:07 +0000

Subra sir

Wonderful article. A follow up post expected anytime on “What is the right profits, sustainable profits, ethical profits”, in the new world of scams, “social audit”, “media audit”, court rulings….

Have a nice day.

Comment on All businesses need not be profitable by subra

subra — Thu, 09 Feb 2012 05:34:26 +0000

petrol bunk, gas agencies, car agencies (not very popular cars especially), …are all good ‘show off’ or ego enhancing and net worth reducing businesses…