Inukabuy is an NGO that helps small shopkeepers in developing countries by organizing them into purchasing groups to negotiate bulk discounts from wholesalers. It does not buy or sell goods directly but instead gives shopkeeper members a card to receive discounts from participating wholesalers. This benefits both shopkeepers through lower prices and wholesalers through increased sales and profits from the new customers brought by Inukabuy.
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Wholesaler presentation 20NOV2013
1.
2. What is Inukabuy?
• Inukabuy is an NGO that was created to help uplift
small shopkeepers in the developing world
• Inukabuy does this by organizing small shopkeepers
into purchasing groups and negotiating bulk
discounts from wholesalers
• Inukabuy does not buy or sell anything
• The wholesaler that works with Inukabuy also
benefits by increasing their profits
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3. How Does Inukabuy Work?
1.
2.
3.
4.
I organize shopkeepers into purchasing groups
I give each shopkeeper a member card
I negotiate with the large wholesalers
I select the wholesaler that provides the best discount
and quality
5. I send all the Inukabuy members to the winning
wholesaler to make their weekly purchases
6. The Inukabuy members show their member cards and
the wholesaler provides the discount
7. The members make more profit because they buy at a
discount; the wholesaler makes more profit because
they get a lot of new customers
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4. How Will the Discount Work?
• The Inukabuy discount will change depending on how many
bales Inukabuy members buy from you per week
EXAMPLE: Bales Sold Per Week to Example
Inukabuy Members
1-10
11-25
26-50
51-75
76-100
101-200
201+
Discount
0%
3%
4%
5%
6%
7%
8%
The discount will
be negotiated
• Inukabuy will also charge a 1% commission on sales to
Inukabuy members in order to fund our operations
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5. How Much Profit Will I Make?
• Below is an example of how you could make more profit (assuming you
are selling bales of skirts that cost you 18K Ksh and normally sell for 20K)
EXAMPLE:
Bales/Week Sold
Discount
Example
Profit/Bale
to Inukabuy
Price/Bale
Discount
(Ksh)
Members
(Ksh)
10
20
40
60
100
200
500
0%
3%
4%
5%
6%
7%
8%
20.0K
19.4K
19.2K
19.0K
18.8K
18.6K
18.4K
2.0K
1.4K
1.2K
1.0K
0.8K
0.6K
0.4K
Total
Profit/Week (Ksh)
(After Inukabuy Commission)
18.0K
24.1K
40.3K
48.6K
61.2K
82.8K
108.0K
• Inukabuy can bring you a lot more profit, even after giving a discount to
Inukabuy members and paying a 1% commission
Page 5
6. Questions & Answers
1. Why should I do this? Because you will make more profit. It is not easy to get new customers.
Inukabuy will give you a lot of new customers, immediately.
2. How will I make more profit if I am providing a discount? The Inukabuy model will only work
if both you and the members are benefiting. Even if you provide a discount, you will still make
a profit on every bale. I will work with you to make sure you are making more profit.
3. How do I know if someone is an Inukabuy member? All Inukabuy members have a member
card that they will show you in order to get the discount.
4. How do I know members won’t pass the member card around for everyone to use? Each
member card has the member’s name and number. You can check the customer’s ID.
5. How will I know how many new customers I am getting? You will document every sale to an
Inukabuy member in your accounting book. I will also be tracking member purchases.
6. How can we negotiate a discount when I don’t know how many new customers I will get?
The discount will be based on the number of Inukabuy members and their expected
purchases/week. I will be talking to you to make sure you are getting the new customers.
7. How do I know that I will get any new customers? To prove to you that Inukabuy will benefit
you, I will organize a group of Inukabuy members to make the first purchase together.
Page 6