These are some insights that I gained through scuttlebutt with the shopkeepers who chose not to keep quartz sinks. This causes problems for shopkeepers, especially with smaller shop sizes. Secondly, the shopkeeper also needs to display many more pieces because every color needs to be displayed. First of all, because of this, the shopkeeper has to maintain stock for a lot more items. In the case of quartz sinks, apart from different sizes and designs, there are also many color options. This allowed the shopkeepers to keep a limited number of pieces on display, and then the customer could choose their desired size and design from the catalog and place an order. There are many sizes and designs, but the look and feel are the same. Requires more extensive displays and stock - All steel sinks come in a similar finish. This makes it less attractive for the shopkeepers. The issue of breakages during transit and storage is higher for Quartz sinks. Stackable Not Stackableīreakage - Quartz sinks require much greater care while handling compared to steel sinks. I couldn’t find an image showing stacked sinks, so here is a picture of chairs to help you understand what I mean. On the other hand, steel sinks are stackable, allowing shopkeepers to store more inventory in lessor space. This method of storage takes up a lot of space in the godowns. You will have to pack them in a square/rectangle box and then stack the boxes on top of each other. Not stackable - Quartz sinks are not stackable. Quartz sinks are still a relatively new and upcoming product. In many cases, the scuttlebutt gives most pro investors an edge over analysts who rely only on publicly available online information.Ĭontinuing with the example of Carysil, here are some insights I got after talking to a few shopkeepers who knew about Quartz sinks but still chose to sell Steel sinks.Ĭontext: More than 90% of the kitchen sink market share is still held by steel sinks. This process of gathering insights on the ground is known as a scuttlebutt. These people can give you insights that are impossible to find through online research. However, another way to build a deeper understanding of the potential of these sinks would be to talk to the shopkeepers who sell them, the customers, architects, interior designers who buy them, and the contractors who install them. Now, if you wish to understand the potential of these sinks, you could read the company’s financial statements, annual reports, con-calls, industry reports, competitors' performance, etc. There is a listed company called Carysil that manufactures and sells Quartz sinks. In investing, Scuttlebutt means discussing and understanding a company’s business by personally talking to stakeholders.Īllow me to explain this with an example. There are many approaches to researching a company and determining whether it is a worthwhile investment. A modern equivalent of this in modern offices would be the watercooler area or the pantry area. The Scuttlebutt was the drinking fountain (scuttle means drill, and a butt is a cask) on the ship, and when the crew gathered for a drink, Sailors would exchange rumors of the voyage. The word scuttlebutt originally meant rumors or gossip.
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