Thanks to recession and sluggish economy, people are now no longer interested in buying things in one go, rather they are preferring to buy the items in EMI’s
Few days ago I shared that how Religare and Tanishq are selling gold on EMI’s (Equated Monthly Installments). Guess what, now cloth houses manly hailing from southern part of India have also started selling the clothes in the same way.
I guess it’s due to the amount of labour and raw material while making a south Indian sari makes it costly as compared to most of the other types of saris which are being sold in India.
I came to know about this scheme when I was hoping in south Extension Market (Delhi), there I saw a newly opened showroom named Rasi Silks. I went in there just to compare the different varieties and range of saris that are being sold as compared to Nalli Silks in Connaught place (Delhi).
As I was mainly doing window shopping, after looking into few varieties I started moving out of store at that point one of the executive of the store walked towards me and introduced me to their sari on EMI option named Rasi sales incentive scheme.
Under this scheme the subscriber has to pay Rs 500 (the subscription amount may differ as per the appetite of subscriber) for 12 months regularly by 23 rd of every month which makes the subscriber for a purchase of Rs 6000 at the end of scheme.
One might think what kind of a scheme is this, at the time of enrolling the subscriber would be clubbed into a group of 150 members and on every 25 th a lucky draw would be taken out and whoever wins that draw can purchase clothes worth Rs 6000 without paying any future installments.
For example: a subscriber enrolls herself on 01 January 2012 by paying Rs 500 on 25 January 2012 the shop picks her name in lucky dip, now she can purchase clothes worth Rs 6000 after 25 January 2012 without paying any future subscriptions.
Those people who are left are eligible for future monthly lucky dips and those who are not lucky enough are eligible for a purchase of Rs 6000 (personal subscription) plus Rs 300 (bonus from shop) at the end of the term.
In order to enroll for this scheme, all you have to do is to walk into the shop and enroll yourself; you can pay your subscription fee by cash at the shop counter every month or can do NEFT to their AXIS Bank account. If you are depositing cash into their bank account you need to pay Rs 600 (Rs 100 are deducted as bank charges).
Here are the rules and regulations of the scheme
- The management is not responsible for the loss of this card (which is issued during the enrollment process).
- Loss of the card should be intimated to us immediately.
- Members of this scheme are advised on their own interest to either come personally or authorize their nominees for purchasing the goods.
- Members are requested to Pay Rs 500 regularly for twelve months.
- Please remember the subscriptions are due by 23 rd of every month.
- 150 members form a group
- The member is at liberty to purchase goods worth Rs 6000
- Runner’s ups will have to wait for the term of the chit (i.e.) one year when they can make their purchase.
- The penalty imposed for the discontinuance at any time during the 12 months period of their after in the group is Rs 500 please avoid.
- Local checks MO and drafts are accepted in the name of “Radha Silk Emporium”.
- To avoid missing the draw P.D. check can be given
- Money will not be refunded in any circumstances.
- Please pay every month one installment.
- Defaulters and Winners are not eligible for incentive.
Now let’s run some mathematics around this scheme and see who benefits the most.
By enrolling into this plan the shopkeeper is making sure that there is no risk of on and off season plus a consistent minimum sale every month. Plus he is getting a minimum Rs 75,000 per month which would act as a cheap credit and can be used for procurement of raw material or they can just do an fixed deposit of amount and earn interest out of it because they are only giving 5% to the amount deposited (Rs 6000 * 5% = 300)
Not sure what would be the next thing that we can purchase on EMI’s, seeing the current phase of economy plus the northbound inflation rate may be it would be bread I guess.