How focusing on profit can help the poor - CSMonitor.com

How focusing on profit can help the poor - CSMonitor.com: "Without a sustainable business plan, efforts to help the poor can burn out. Although the profit margin on Essence of Life products is smaller than other products, Teichmann said it’s vital."



" “What we do is make enough money to continue the investment and get some return back so we can bring on people and make more products, expanding the portfolio [we can offer to farmers],” he continued. “The business model sustains itself, which is very important.” "



"Xylem cuts production costs by partnering with nonprofit organizations and government agencies to distribute the pumps – groups that know these rural communities well.



“We utilize their intimate understanding of conducting transactions and relationships in rural communities,” Teichmann said. “They become a part of our logistical channels to not only bring the product in, but to service the product as well.”



That service component is crucial, Teichmann said. If farmers can’t get repairs or replacement parts, even the most innovative and necessary product becomes useless."



"We see competitive products rusting in fields because there was no proactive service proposition, and they broke."