Business Based on Trust (offline), and some updates
For the past few days I have been busy with my MBA, this is what happens when you are part-time student. End of semester comes, and boom* you are suddenly busier than any professor in the university. Anyway, I have managed to submit all my term-papers and I am done with half of my presentations. So, I have some time to blog now.
By the way, first week of june I will be having my final exams. Therefore I need some guest bloggers, if you want to get your post on this blog. Send your best unpublished articles to my email at abdylas(%)gmail(.)com. Please note that only high quality articles will be published. If you do not hear from me confirming that your article is accepted and will be published on this blog. Then, it means that your article has been rejected, unfortunately.
Business Based on Trust
Ok, now to the main article. While I was busy doing my term-papers and preparing for presentations, spending most of my time in the university campus. Something interesting caught my eye and I thought I would share it with you guys so I took few pictures with my phone. It’s a bottled water business (see pic below). The company sells bottled water in the campus for 0.50 cents per bottle.
The unique thing about this business is; 1) there is no sales personnel 2) they do not employ any *high security* vending machines for dispensing bottled water and 3) payment is left to customers’ conscience.
While it’s not something extraordinary but it’s refreshing to see businesses operating based on trust, especially in the university campus. Because you know how crazy the students can be, right? But as you can see not with IIUM (International Islamic University Malaysia).
Here is another rack I saw while I was heading to another side of the campus for my breakfast.
I have asked few students about this bottled water business and they said the business has been around for some time. Well, that only tells us that it’s not only possible to operate business based on trust but it’s also possible to make money with it (provided that the community has high morals and strong iman).
Related Posts
- Winners: Top 100 Home Based Businesses
- Getting To Know Business Models
- Starting a Business: Articles by Amex
- Entrepreneurial Death Traps
- Rollyo - Create your own search engine
19 Responses
to “Business Based on Trust (offline), and some updates”
1 Trackback(s)
- Jun 2, 2008: dispensationalism
By Eva White on May 26, 2008
I agree that it is possible to run and profit from bussinesses run on trust in small communities. However when the number of people cant be regulated and most are strangers…then the honesty factor goes down a bit, and so might the profits.
By Ades on May 26, 2008
I forgot to mention that the university has more than 20,000 students (as of 2005), now probably around 30K. So as we can see it’s not a small community…
By Rice Blogger on May 26, 2008
i must say that this is actually the smart choice for a community..
this is because if you think of it…all consumer is paying for the vandalism/stolen goods from the vending machine..businessman would not do business when here is no profit to be made…if people are more civilize, we would pay cheaper for our goods…just like the drink..rm0.50 is cheap
By Dining Tables on May 26, 2008
In many parts of the British colonies, newspaper vends used to operate on this basis, though recently, I have not seen any. People used to be honest and drop the right amount and even take change from the plate kept for that purpose. In a situation like a university, it may work, but in a busy market place, it is unlikely as the kind of populace that will visit the place can include some very unsavory types.
By Social Wonders on May 26, 2008
as far as I know, this type of bussiness can be very sucessful in Malaysia because “as I heard” muslims are very honest.
any way honest should be the basis of all our deals
By Hilmy on May 26, 2008
Coincidentally I’ve seen the exact same one at UiTM Shah Alam today during a convocation.
First thing that surprised me was the price. There’s no other merchant sells at that price before. At least those that I came across.
And yeah, secondly the raw “trust the people” belief that was shown by the enterpreneur is simply out of this world!
Perhaps that’s what keeps the price down. Imagine if he has to hire vending machines and it’s people, power and maintenance requirements throughout the sites.
So, may be trusting people makes economical sense after all :)
By Carrie on May 26, 2008
This looks like a wonderful idea. I could see it working very well in office buildings, where all of the workers know each other and are familiar with the system. Knowing the people using the setup would increase accountability, and more than likely everyone would know who the person who kept swiping free water is if something dishonest was going on.
By shawal on May 26, 2008
Hi Ades,
First of all, good luck on your final coming soon exam….
Trust is a matter of yourself….Ask yourself..
By PS3 on May 27, 2008
The bottled water company must trust in the fact that a high enough percentage of the students will be honest enough to leave money.
But do the students think that the business is honest enough not to fill their bottles with tap water?
By Ades on May 27, 2008
- Rice Blogger, agree. It does bring down the cost of operation for the business owner, since he doesn’t have to invest in vending machines.
- Dining Tables, yes you are right. But now we can see those newspaper stands in the movies only. Even in movies we can see that sometimes the criminal would take all away, because his photo was on front page ;)
- Hilmy, so I guess they are venturing into other campuses as well? Nice to know, thanks!
- Carrie, I agree. I think it would work well in offices. But then again, why don’t the office provide the water for free? ;) just kidding… the concept could be used for many other products.
- Shawal, Thanks a lot!
- PS3, I don’t think they will resort to that. And as we see they have clearly published their company details and contact info on the stands. I don’t think someone who wants to cheat the community will proudly publish their company details?
By David Marx on May 27, 2008
It is gratifying to see there is still honesty and truthfulness in this silly world we live in! When people embrace these concepts in themselves through being raised in a conscious environment it is a model of what could ultimately become utopia.
By Yee Yean on May 27, 2008
Sorry for being off topic, but you Ades, are you from Malaysia too? o.O
By Ades on May 27, 2008
Hi Yee, no I am not Malaysian. But been here since 1996, married to Malaysian.
By Dining Tables on May 27, 2008
Just this morning, I was reading in the papers that hooligans took all the cash in the plate of a blind beggar on the street! What a world that we have begun to live in!
By PS3 on May 28, 2008
I take your point Ade. I also guess that the students where you reside are far more respectful of authority generally than here in the UK!
By Dino on May 29, 2008
I did this during my UTM time. We were selling kurma then. We packaged into small containers, dozens of them, with another container for the money, and a small sign.
We’d leave like 20-30 packs at nearby hostel blocks. And then we’d come back and collect the money and unsold ones in about an hour or so.
Normally done before breaking fast time.
Others did the same with nasi lemak. Normally done between 5 to 7pm for dinner. You know how students eat. Save all you can.
By Rajaie AlKorani on Jun 1, 2008
Wow! That’s the first time I’ve ever seen anything like that. It would be nice if you could know how much they have made and if any was stolen
By Free Playstation 3 on Jun 2, 2008
I remember in some WH smiths a few years ago in central manchester, you could just pickup your paper and drop the change into a similar cage and walk out. That was heavily based on trust.
Although its not like that anymore, wonder why