The Transportable arbitrage

A way to profit from the gap between what service providers could pay Motorola and what dealers paid.

John Caudwell's framework, from Love, Pain & Money, pp. 106 to 116.

Learn the customer value
Use the Racal flotation figure of £1,000 per customer to see that commissions of £200 or £300 are cheap for networks.
Find what the provider is paying
Record the prices providers pay Motorola for phones on the price graph.
Offer to supply them
Provide Transportables to service providers at cost price without Motorola knowing the source.
Take the rebate
Charge only the retrospective commission, a four percent volume rebate on a bulk order.

From chapter: Chapter 13_GIANT, pp. 106–116

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