Equilibrium under Perfect Competition of Market

There is a demand curve under perfect competition:

Equilibrium under perfect competition

This is a horizontal demand of curve. So, the price is given and the firm has to decide the output to be produced according to their cost condition at that price.

Equilibrium Condition or the optimal output level:

The firm which wants to maximize its profit and minimize the loss should produce a output where MR=MC. This condition is applied to all the firms regardless of whether it has the control to set the price or not. But where the firm has no power to decide, the price MR is the going market price (P=MR).

Revenue and cost concept tells that TR-TC is total profit. Similarly, MR-MC is the marginal profit. When both reach at this point that is MR=MC. This formula shows that the firm can make no more profit and therefore should stop there. This is called output level.

We can show the equilibrium condition under perfect competition as:

Equilibrium Condition under Perfect Competition

After this condition there are short run equilibrium with loss and long run equilibrium. The short run equilibrium with loss brings a condition of shut down point. In short run, the firm may continue its production to recover losses in long run.

We assume that all the firms have identical cost condition in the industry. In the short run, the firm will keep on producing even when it is incurring loss. But in the long run, the firm, which is not even getting normal profit, will shut down.

The existing firms will return to normal profits from super profits. So, in long run, under perfect competition the firm incurs normal profit. There are no super normal profit and no huge loss.

This concept brings an understanding about market and competition of market. This curve is applied in all competition of market.

0% Brokerage in Real Estate Sectors and Adviser Model to Grow Property Business

First time in India by Property on Wheel (POW) there is an option to buy a property on the 0% Brokerage. There is an introduction of the company which provides 0% brokerage services in the real estate sector. It offers different portfolio for the sellers If a seller who is repeat customer of the company. Repeat customer means, a person who is selling or renting his property again and again through the company channel. Then his profile is added in its record and his identification is his mobile number. If next time he wants to do some business through the company channel and he is calling from the same mobile number then he will be a repeat customer for the company.

The company charged some breakage from the seller because it has some overheads like – Managers Salaries, Petrol expenses, backend call center overheads etc.

Program for the Local Brokers:

Local Brokers plays an important role in real estate sector. There are many brokers in real estate who works in a particular area and he is the only person who has the knowledge about a particular area. You can say he has the advance information about the property. A broker can tie-up with this company to follow these terms and conditions:

• Tie up with the local brokers.
• Part of Property on Wheel.
• Convert his vehicle into POW and provide the kit and install the vehicle tracking system.
• Integrate his mobile number with the company system send or receive the requirements through SMS.
• Minimum overheads and Maximum output.
• Local Broker can also deal or generate leads outside the local market (outstation).
• Pay a minimum amount to join the company as an adviser or broker.

After the Tie up with the Property on Wheel (POW) now he can generate leads and provide information across the India. It means his business is extended.

Adviser Model:

The Adviser is a 100% pure part time or full time property business. The cost of this model is just Rs. 6999+Taxes and he has to provide at least 50-100 references of his friends or relatives. The backend call center of the company will contact to that references. The company charges Rs. 20 per reference on credit basis, credit means it would be adjust this amount in his payout.

It is a unique program with 0% brokerage for buyers. It means if you are sending someone to buy, the company does not charge anything from buyer either for rent or buy or any short of investment in properties and free property visits instantly with the help of property on wheels on competitive rates.

How Adviser Work:

When any individual join the program then the company installed GPS software in his mobile. Now he can take photo of the property, provide property related information and send it through his mobile. That property will be added in his account and will also update his account.

There is another model for adviser that is referral model (MLM). This is basically a chain business network in which you have to make pair below your network.

How Adviser Earn:

Adviser can earn from the both ways first one is generate the leads and send it to the company. If deal is completed successfully then adviser will get 20% breakage amount. This is being described in below figure—

The Second one is Referral program (MLM) the adviser can earn unlimited revenue from this model by making the pairs below his network. He will earn Rs. 1000 per pair.

Company Details:

The company is based in India in the real estate sector. It is trusted company and India’s 1st real estate retail chain. It provides services for buyers on 0% brokerage. It is PropertySensex. It has given its services for many major clients like – TATA AIG Life Insurance, Max Life Insurance, Bharti AXA Life Insurance, Religare, Aviva, Subhiksha, Spencer Retail, Vishal Mega Mart, Wall mart etc. on 0% brokerages in commercial property, commercial space, lease space, office space, rent space, show room space and residential flats across India.