April 29, 2008
By Khalid
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The Price of Rice
The following story was told by my father and is a mini test to see if you have an eye for entrepreneurism.
In some Middle Eastern countries, prices of certain commodities are controlled by the Government. Years ago, in a small town, there were two convenience store shopkeepers – Akbar and Adam. Both shopkeepers bought rice at 10p per kilogram in 100 kilogram sacks.
Akbar sold rice at 15p per kilo, netting him 5p for every kilo sold. Adam, a Jewish business man, sold rice at 10p per kilo, cost price.
Adam’s queue was out the door and along the street whilst Akbar’s custom was far less. Akbar said to Adam “If you are selling at cost price, how do you make money?”
Can you answer the question? If so, leave your answer in a comment.
Good luck with your persuits,
Khalid.
