Here is a satirical look at how a startup can make money by taking a leaf out of a company’s savvy move to bring a coveted product to the masses at an unprecedentedly low price.
Tell the world you are launching a product for India under Make in India campaign (Cost: Rs 0)
While everyone is still going crazy about Make in India campaign, just launch a smartphone at a jaw-dropping price, and give it a name that everyone would like to hear, like ‘Freedom 251’ for Rs 251, with features like 3G, HD screen, dual cameras and much more.
Marketing cost (you spend Rs 0)
Grab the attention of world media and get featured in leading newspapers, websites, and news channels like BBC. Make the rounds on Facebook, Twitter and other social media. Indian media will definitely feature you without knowing the facts as people love to hear about how awesome the product is and how awesome the Indians are.
Fix a date to launch a product (you spend Rs 5,00,000)
Fix a date to launch your product. The date should be near the dates when the government has a campaign going on, like a Make in India event in Maharashtra. You don’t even have to call media for the event as they will definitely come without invitation.
Get five cheap China-made phones and paste your brand sticker on the same. Have some pretty models hold your phones and make news.
Create a website where people can pre-book the phone (you spend Rs 7,500)
Make a simple website with your addresses, contact number and all the details that will make you look genuine (unlike Freedom 251’s website, which doesn’t have contact details).
In your Terms and Conditions page just mention a condition: ‘If due to any reasons we are unable to deliver the phone in the next six months, we will refund the money’.
Open your website to take the bookings (your cost 0)
Get 50 lakh customers to pay Rs 251 and Rs 40 each for delivery. So you end up getting Rs 145 crore. Now, promise a delivery in the next six months or definite refund. Take this Rs 145 crore and deposit it in the bank for six months where you earn nine per cent interest. So you end up getting an interest of Rs 6.5 crore.
After six months refund the Rs 145 crore collected from customers and pocket the Rs 6.5 crore.
ROHIT LOHADE – Co-founder at www.businesssetup.in