Some thoughts for those who find it difficult to seperate a goods market and skills market. This is a story of Joe ( a self employed Vegetable Seller - a typical kenyan economy ) and Harry ( a self employed automotive mechanic - not many around these days )

 

 

Joe: Sold 20 tomatoes, 5 cabbages, 10 carrots and went home with a daily profit of Ksh 500. This was net profit, after removing transport and supply goods.

 

Harry: Got a client who wants an engine overhaul done. Starts off by removing all the components in the engine bay. NO MONEY MADE. Has to depend on some inputs to sustain daily

 

 

Joe: Sold 50 tomatoes, 10 cabbages, 50 carrots and went home with a daily profit of Ksh 1500. This was net profit, after removing transport and supply goods

 

Harry: Still on the same engine. Now ready to use a crane to hoist the engine out. By the evening the engine is dismantled to begin the process of overhaul. NO MONEY MADE. Has to depend on some inputs to sustain daily 

 

 Wednesday:

 

Joe: Sold 20 tomatoes, 50 cabbages, 50 carrots and went home with a daily profit of Ksh 1500. This was net profit, after removing transport and supply goods

 

Harry: Still on the same engine. Sends the blocks to engineers to re-bore, while buys all the parts necessary for the overhaul. Then ensure a final clean of the entire engine components, lays out everything out to start assembly. NO MONEY MADE. Has to depend on some inputs to sustain daily

 

 

Joe: Sold 10 tomatoes, 5 cabbages, 5 carrots and went home with a daily profit of Ksh 250. This was net profit, after removing transport and supply goods

 

Harry: Completes assembly of the engine and now begins to put everything back together until later that night. NO MONEY MADE. Has to depend on some inputs to sustain daily

 

 

Joe: Sold 100 tomatoes, 50 cabbages, 50 carrots and went home with a daily profit of Ksh 2500. This was net profit, after removing transport and supply goods

 

Harry: Starts up the engine, everything is smooth, no over-heating or the rest of problems. Raises a labour cost of 25,000/- , the client will pay the full amount/balance within 5-10 days, after they are satisfied with the work done.