Concept of Sales – On a cup of Tea
Concept of Sales – On a cup of Tea
It is generally considered that if “Supply” and “Demand” exist simultaneously for a product (or service) then “Sales” takes place However, there are a few more important parameters that play silent but very active integrated roles in the process of “Sale”. Let us consider Ram (Buyer), who must have bed-tea as his regular routine. While travelling in an overnight train and in the early morning around 6-00am, Ram is eagerly waiting for the ‘Chayewala (Seller)’. In the next station, Amar, the ‘Chayewala’ enters the train compartment on a fully enthusiastic note: “chaye garam chaye”. Will sales take place now ?
Ram called Amar and ordered a cup of tea. While enquired about the price, Amar informed it is Rs.50 per cup. A big surprise and little bit of a shock , as market price for a cup of tea in running train is approx. Rs.10… … … Will the sale take place now? Most likely ‘No’ because the buyer will not be convinced on the exorbitantly high price and in this situation, one of the silent important parameters, i.e. ‘Buyer Satisfaction’ is not fulfilled.
While asked about the cost, Amar informed it is Rs. 10 per cup but Ram was ready to pay only Rs. 5 per cup, which is much lower than the average market price . ill the sale take place now? Most likely ‘No’ because the seller will not be convinced on the exorbitantly low price and in this situation, one of the silent important parameters, i.e. ‘Seller Satisfaction’ is not fulfilled.
After few minutes of Amar refused to sale to Ram, imagine that the train has faced an accident and Ram was severely injured. Outside is a lonely place
within a Jungle area and chance of any quick rescue operation is very remote. A co-passenger, by profession a Doctor, was trying to support all the
injured travelers within the train and he advised Ram to have something hot drinks, as an immediate support to counter his accidental injuries. Now will
it matter to pay Rs.50 for a cup of hot tea? Most likely ‘No’ because the buyer’s priority will be to take care of his injuries and he will not mind to pay Rs. 50. This explains the importance of another silent parameter i.e. “Change in situation on the buyer’s side”. This parameter can evolve in greater dimension if there is more than one injured travellers who have been advised to have some hot drinks to take care of their individual injuries but there is only one cup of hot tea left in the can. In this situation, most likely Ram will be ready to offer more than Rs.50 per cup to Amar to take the only cup of tea available.
No accident having occurred, imagine that the train is almost reaching the destination station around 11-30 pm. The business hours for Amar is almost over but still 5 cups of tea remained unsold which he has to throw out at the destination station, if he cannot sell finally. Will he now stick to Rs.10 per cup? Most likely ‘NO’, as he will be interested to get whatever he can earn out of these 5 cups before the train reaches to the destination……may be at Rs.5 per cup… … … or even may be at Rs.3 per cup. This explains the another silent parameter i.e. ‘change in situation on the seller’s side’. Even if I can not sale my product today due to some kind of challenges, there is always a good chance of favourable change in the market conditions and re-opening of the opportunity for my business. Keeping touch with customers is important, for today and for tomorrow too.
One more parameter plays silent but crucial role, which is Relationship. This is applicable in a market where buyers and sellers keep meeting very regularly, e.g. if Amar sales tea in local suburban train where mostly regular daily passengers are commuting. There may be several ‘Chayewalas’ but mostly every group of daily passengers will have one particular preferred ‘Chayewala’ for buying tea, though the rate is almost same for all , in the local train compartment. Having good relationship, customers normally feels happy in extending extra-ordinary help to resolve our business challenges.
Hence all in all, ‘Supply’ and ‘Demand’ of a product (or service) is definitely compulsory factors for “sales” to happen … … … however, at the same time ‘Mutual satisfaction of both buyer and seller’ and ‘Change in situation at both end’ and ‘Relationship’ also silently play catalytic roles in assisting the sale to take place.
Happy Selling !!