Wednesday, July 02, 2008

A consultant's moment

Everyday, my friend from HBS and I have lunch at a Sandwich place near our work place. The food is unbelievably fresh, healthy and incredibly yummy! We have a heavy lunch (as is the culture of Chile) and on our way back to office, we have honey-roasted-nuts for dessert ;) This stuff is apparently available in New York City too - and is sold by a Chilean!

Yesterday, the two of us suddenly ventured into estimating how much the nut-vendor earned per day! We went around on a sound discussion (we have about 3 blocks to walk to reach office) and by the end of it, we had brought in standard deviation, the bell curve, estimated population of Santiago, estimated floating population in this touristy city, % of them in downtown, approximate "office hours" for the nut-vendor, number of packs he could make in an hour, number of packs people could consume in an hour, and perhaps many other parameters. The analysis fast and furious - for understandably no reason. Finally - we settled at an excessive estimate of a revenue of 150000 Chilean Pesos (approximately US$300) for the nut vendor per day.

During our dessert time today, we got curious and asked him.
His answer: 120000 Chilean Pesos (approximately US$240).

Considering it was a blind estimate - not bad eh...


Starwalker said...

Not bad, indeed. Incidentally, I made around $300 a MONTH, as a surgeon in India, in a teaching hospital, as a faculty!! Not too shabby for the roast-nut guy, i suppose

madhu said...

Are you sure that the guy didn't think you were a tax-man or something? :)

Iday said...

Oh - this is just his revenue. We still have to factor in his costs to evaluate how much he really takes home. It is still going to be more than $300 a month :)

So are you trying to hint that he removed 2 zeroes from the end??? ;)

madhu said...

I am saying that the verification data could be skewed.
If I were you I would verify the "honey roasted nuts" before eating! (Just in case he sells a tax-man special) :)

Starwalker said...

yes, iday, i realised that was just revenue.... and i'm not bitter (see i'm not clinging to anything, if u know the barrack reference)

OMGparishilton said...

what about account receivables?? is that increasing MoM/steady/actually decreasing? ARs could be critical for a vendor, in India atleast the street-corner hawkers have a full fledged well maintained AR book.