Comparison of Pure Product Offer and Hybrid offers

For the purpose of proving, I factored in just one variable that is 'CREDIT'


For example,

Credit = 60 days

No of days to sell 10 quantities = 20 days implies a single qty takes 2 days to sell

Maximum Possible Cycles = Purchase - Hold - Sell - Purchase again = 60/20 = 3 cycles





Carefully look at the following information in the picture

Pure Product - Single bill comes with 20 qty

Hybrid - Single bill comes with 13 qty and cash in hand


Less Quantities = Less Inventory Cost = More Cycles = More Profit


At the end of the 60th day,

Pure Product Offer - 2 Bills with 10 quantities in hand + 1.5 cycles

Hybrid - 3 bills with 9 quantities in hand + 2.3 cycles


Profit of Hybrid > Profit Pure Product Offer


This can further be proven by factoring in inventory cost, labour cost, Tax saving etc

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Disclaimer: This article is me speaking to me through this blog! Short Intro: If you want to innovate in a particular field, you need to understand how things work in the first place. Innovation is a