426. Discount Store

"Sir, the world is changing. We can survive only if we adapt ourselves to the changes happening around us" said Karthikeyan, Sales Manager.

"There is no need for us to change!" said Murugappan, the Managing Director.

"Sir, your policy of not giving any bribe to the government officials is laudable. You have been steadfast in your policy all these years and running your firm successfully. But, during the present days, the virus of bribe has spread to all sectors. Even the senior executives of the firms distributing our products are asking for commission from us. We can add this commission to the selling price. They won't mind."

"Are we not paying commission to our distributors?"

"Sir, you know what I mean. The commission I have mentioned is the bribe the executives like the Purchase Managers ask for themselves, in return for their favouring us by choosing to buy from us, rather than from our competitors. Even the proprietors of small distribution firms ask for commission so that the could earn some tax free money, though they know that would end up paying a higher price for the product by our adding the commission component to the selling price."

"When we have been following a policy of not paying any bribe to anyone, how can we pay bribes to the executives and proprietors of firms? Even if we call the payments commissions, they are only bribes!"

"Sir, as a Sales Manager, I face the problem, when our distributors ask for commissions. Our sales executives complain to me about the challenge of getting orders without paying commissions, when our competitors have been offering this kind of commissions. Even a small consumer buying a soap in a shop expects at least a small rebate in the selling price. Our distributors asking for commissions is similar to this."

Murugappan was silent for a while, apparently reflecting the points made by Karthikeyan and then said, "I appreciate the merit in your argument. I will think about it."

Karthikeyan felt relieved that Murugappan had shown signs of relenting on his stubborn stance.

After a week, Murugappan told Karthikeyan, "As you had pointed out, now there is a tendency among people to expect rebates, discounts, rewards etc, when they buy a product. It is true that we should adapt ourselves to the changes taking place in the world around us. But, it doesn't mean that we have to give up our principles and values."

"But you said that we should adapt ourselves to the changes!" asked Karthikeyan, feeling disappointed.

"Taking advantage of people's clamour for discounts, we can start a discount store. By selling to the consumers directly, without routing through distributors, we can offer attractive discounts to the buyers. This will also lead to increase in sales. We don't have to resort to dishonest practices. I spoke to our auditor about the financial aspects of this proposal including the investment required and the profitability. He says that for thirst two years, we may have to struggle but that after that period, we will be able to earn as much profit as we have been earning now. Our sales executives can be employed in our store, if they are willing to work there. We can also sell our product to those distributors who won't demand bribes from us. There are prospects for expanding our business in a big way, by opening new stores after a few years!" said Murugappan, sounding excited.

Thirukkural
Section 2

Materialism

Chapter 43
Wisdom

Verse 426 (in Tamil):

evvadhu uRaivadhu ulagam ulagaththodu
avvadhy uRaivadhu aRivu.

Meaning:
Wisdom consists in adapting oneself to the way the world moves.

(This is the English version of the Tamil story 'murugappanin pidivAdham' by the same author.)

Verse 427
Verse 425