Although I am happy with their service but now I have a feeling that
they may be converting black money into white.
I am just speculating but I think this is what is going on in background.
- Tie up with medicine stores all over (offer them 5% to 10% per order)
- Tie up with original manufacturers (bulk buy at 35-50% discount)
- Take order from customer for example say order is worth Rs.100
- Purchase medicines from store on credit at full price
- Take money from from customer with 20% discount (i.e. Rs 80)
- In their sale book - add 20% of their black money from own pocket (black money converted Rs.20 per Rs100)
- From their own store - replenish (give back) the medicines to medicine store with 10% extra money (Rs.10 as their commission)
- Their own profit 5% to 15% (i.e. minimum Rs35-Rs20-Rs10=5Rs.)
So for every Rs.100 worth of order, they make upto 15Rs + 20Rs worth of black money converts to white
Plus medicine store owner get 10Rs for FREE without doing ANYTHING. His turnover also increases.
If 10Rs given as commission is also in cash then black money converted would be Rs 30 per order worth Rs100. (Huge conversion)
Note: Percentages above are just my guesses but thats the only way they can have profitable
business.